Urban Outfitters has disappointing Q4 with earnings, sales misses
Urban Outfitters set a record with Q4 sales, but still fell short of Wall Street expectations.
The specialty apparel and accessories retailer reported Q4 sales of $1.17 billion, which reached an all-time high and rose 3.6% from $1.13 billion the same quarter the prior year, but missed analyst predictions. Adjusted net income for the quarter totaled $49 million and adjusted net earnings were $0.50 per share, short of consensus estimates of $0.63 per share and down from $0.83 per share the prior-year period.
Same-store sales rose 4%. By brand, they increased 9% at Free People, 6% at the Anthropologie Group, and were flat at Urban Outfitters.
For the full fiscal year, Urban Outfitters reported net income of $168 million, down 44% from $298 million, and earnings per share of $1.67. Net sales rose slightly to $3.98 billion from $3.95 billion. Same-store sales climbed 1%, driven by growth in the digital channel, partially offset by negative retail store sales.
Richard A. Hayne, CEO of Urban Outfitters, ignored the company’s failure to meet Wall Street estimates in his commentary.
“I am pleased to announce record fourth-quarter sales driven by a 4% retail segment ‘comp’,” said Hayne. “Positive customer reaction to our early spring assortments bode well for continued ‘comp’ growth in the first quarter,” finished Mr. Hayne.
As of Jan. 31, 2020, Urban Outfitters operates a portfolio of global consumer brands comprised of 248 Urban Outfitters stores in the U.S., Canada, and Europe and websites; 231 Anthropologie Group stores in the U.S., Canada, and Europe, catalogs and websites; 144 Free People stores in the U.S., Canada, and Europe, catalogs and websites, 11 food and beverage restaurants, five Urban Outfitters franchisee-owned stores, one Anthropologie Group franchisee-owned store, and one Free People franchisee-owned store.