Urban Outfitters Reports Record Sales and Profits
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."
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