Driven by higher same-store and net sales and reductions in markdowns, Urban Outfitters Inc. reported a 78.8 percent jump in second-quarter profits Thursday, beating Wall Street estimates.
For the quarter ended July 31, the Philadelphia-based company posted net income of $57 million, or 33 cents a diluted share, compared with $31.9 million, or 19 cents, in the year-ago period.
Revenues were up 30.4 percent to $454.3 million, versus $348.4 million for the prior-year quarter. Same-store sales rose 13 percent, led by a 19 percent increase at the Urban Outfitters division. Free People and Anthropologie were up 10 percent and 7 percent, respectively.
Analysts polled by Yahoo Finance expected earnings per share of 30 cents a share on sales of $450.5 million.
“All of our brands and channels produced exceptional results during the period. The company executed superbly throughout the quarter, and we believe we are appropriately positioned for the second half of the year,” chief executive officer Glen Senk said. “If it sounds like I’m bursting with pride, you are correct.”
Quarterly gross profit margins increased 373 basis points to 41.1 percent of sales, aided by improvements in initial merchandise cost, fewer markdowns and leverage of store occupancy costs. Inventory grew by $25.6 million, or 14 percent year-over-year, driven by the acquisition of inventory to stock new retail stores.
Net income for six months increased 30.4 percent to $99.5 million, or 58 cents a diluted share, compared with net income of $61.2 million, or 36 cents, for the same period last year. Net sales were up 28 percent to $848.6 million, versus $663 million for the year-ago period.
Urban Outfitters operates 115 Anthropologie stores, 21 Free People stores, 132 Urban Outfitters stores and one Terrain garden center.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)