Urban Outfitters Reports Record Sales and Profits

Before you go, we thought you'd like these...
Before you go close icon

Urban Outfitters announced record sales today for its third quarter. Its $774 million in sales was a 12% increase over the same period last year. Gross profit of $292 million, though not a record, was also a 12% year-over-year gain. Earnings per share came in at $0.47, a 20% improvement.

The company got the biggest gains from its Anthropologie and Free People segments, which saw comparable sales rise by 13% and 30%, respectively. However, comparables fell by 1% at Urban Outfitters itself, which is the company's largest segment, with $341 million in sales compared with $310 million at Anthropologie and $113 million at Free People.

Urban Outfitters recognized a gross profit rate of 37.7%, an 11-basis-point improvement relative to the same period last year. Through the first nine months of the year, the gross profit rate was up 99 basis points to 38%. Selling, general, and administrative expenses as a percentage of sales, meanwhile, were flat at 24.1%. The company also said its cash and cash equivalents increased by $269 million, to a total of $726 million.

In addition, Urban Outfitters began the share repurchase program it announced in August, buying back 0.3 million shares for a total of $11 million. The company has been authorized to repurchase up to 10 million shares.

CEO Richard Hayne, although praising the performance at Anthropologie and Free People, said that "we remain cautious about the fourth quarter, given the likelihood of a highly promotional environment and this year's challenging Holiday calendar."

The article Urban Outfitters Reports Record Sales and Profits originally appeared on Fool.com.

Fool contributor Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends Urban Outfitters. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading