Urban Outfitters comps growth not in stores
PHILADELPHIA — Urban Outfitters' performance in the fourth quarter indicate that while consumers may still enjoy its trendy products, they aren't going to its stores to get them.
The company reported that comparable-store net sales decreased 1% for the quarter. However, direct-to-consumer comparable-net sales increased 14%. Combined combarable-retail-segment net sales increased 2% for the quarter. Total sales for the quarter rose 9% to $731 million.
For the year ended Jan. 31, total net sales increased to $2.5 billion.
“While each brand reported record sales for the fourth quarter, we are most pleased with the progress the teams made on reducing overall inventory levels. Promotional activity was significantly higher than planned but ending inventories were clean, and on a comparable store basis, lower than the prior year," said Richard Hayne, CEO. "The direct-to-consumer channel remains a highlight with each brand experiencing strong growth during the quarter. We remain especially excited about the opportunities surrounding this channel."
During the year, the company opened 57 new stores, including 21 Urban Outfitters, 15 Anthropologie stores, 20 Free People stores and 1 BHLDN store.