Urban Outfitters, Inc. (NASDAQ:URBN) reported upbeat earnings for its first quarter. Comps were up 1% in the quarter.
The Philadelphia-based Urban, a leading lifestyle products and services company which operates a portfolio of global consumer brands comprised of Anthropologie, BHLDN, Free People, Terrain and Urban Outfitters brands and the Food and Beverage division, announced net income of $33 million and earnings per diluted share of $0.31 for the three months ended April 30, 2019.
Total company net sales for the three months increased 1.0% over the same period last year to a record $864 million. Comparable retail segment net sales increased 1%, driven by double-digit growth in the digital channel, partially offset by negative retail store sales.
By brand, comparable retail segment net sales increased 2% at Free People, 1% at the Anthropologie Group and were flat at Urban Outfitters. Wholesale segment net sales increased 2%.
According to CEO Richard Hayne, "Our sales growth was driven by our seventh straight quarter of positive Retail segment 'comps' as well as continued growth in our Wholesale segment."
For the quarter, gross profit rate decreased by 167 basis points versus the prior year’s comparable period. The decrease in total company gross profit rate was driven by lower gross profit in the Retail segment while gross profit in the Wholesale segment increased.
The decrease in Retail segment gross profit rate was driven by higher markdowns and de-leverage in delivery and logistics expenses.
Shares slid $1.73, or 6.4%, to $25.27
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