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.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)