Urban Outfitters, Inc. (NASDAQ:URBN) reported better-than-expected sales for its third quarter on Tuesday.
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, Urban Outfitters and Nuuly brands and the Food and Beverage division, today announced net income of $56 million and $149 million for the three and nine months ended October 31, 2019, respectively. Earnings per diluted share were $0.56 and $1.47 for the three and nine months ended October 31, 2019, respectively.
Total Company net sales for the three months ended October 31, 2019, increased 1.4% over the same period last year to $987 million.
Comparable Retail segment net sales increased 3%, driven by growth in the digital channel, partially offset by negative retail store sales. By brand, comparable Retail segment net sales increased 9% at Free People, 4% at the Anthropologie Group and were flat at Urban Outfitters. Wholesale segment net sales decreased 7%.
During the quarter. the gross profit rate decreased by 217 basis points versus the prior year’s comparable period. The decrease in gross profit rate was driven by higher markdowns, deleverage in delivery and logistics expenses and lower Wholesale segment margins.
CEO Richard Hayne, "I’m pleased to report record third quarter sales, driven by better reaction to our apparel assortments and strength in the digital channel. Looking ahead to Q4, we’re encouraged by positive sales-to-date but realize our highest volume days have yet to be written."
Shares slid $3.86, or 13.4%, to $24.93, as the clock approached noon ET Wednesday
