Urban Outfitters Inc. on Monday reported net income of $60 million for the third quarter ended Oct. 31, a 17.6 percent increase from $51 million in the same period of 2011. Net income for the nine months ended Oct. 31 was $155 million, a 6.9 percent jump over $146 million for the prior year’s nine-month period. Earnings per diluted share were 40 cents and $1.06 for the three and nine months, respectively.
The retailer said net sales rose 14 percent to a record $693 million in the third quarter, versus $609.9 million in the year-ago quarter. Comparable retail segment net sales, which include the direct-to-consumer channel, increased by 8 percent for the quarter, while same-store net sales decreased by 1 percent. Comp-store sales at Free People rose 24 percent; Urban Outfitters, 7 percent, and Anthropologie, 6 percent. Direct-to-consumer net sales increased by 36 percent and wholesale segment net sales rose by 7 percent.
Frank J. Conforti, chief financial officer, said Hurricane Sandy impacted the last four days of the quarter, with “106 of our stores affected by Sandy. Closures ranged from a few hours to a week. The direct-to-consumer channel was negatively impacted by power outages in the Northeast. Sandy could have affected our total retail segment comps by up to 1 percentage point.”
As of Oct. 31, total inventories increased by $28 million, or 8 percent, on a year-over-year basis. Comparable retail segment inventories were flat and store inventories fell by 6 percent. Selling, general and administrative expenses as a percentage of net sales for the three months rose by 75 basis points due to higher incentive-based compensation.
The direct-to-consumer channel in September had the highest sales of any month in its history. International direct sales shot up 66 percent, with Australia posting a 155 percent gain. Freepeople.co.uk was launched this year and Urban Outfitters unveiled three new stores in Germany in addition to launching urbanoutfitters.co.ge. “The European business has produced double-digit increases with 20 stores,” said Tedford Marlow, ceo of Urban Outfitters Group.
Chairman, president and chief executive officer Richard Hayne said, “The European direct-to-consumer business is the fastest growing business.”
Conforti said the company in 2013 plans to open 49 new stores, including 18 Urban Outfitters units, 15 Free People stores, 14 Anthropologie locations and one store each for Terrain and BHLDN.
Margaret Hayne, Richard’s wife and president of Free People, said the brand opened an 800-square-foot in-store shop at Nordstrom’s Seattle flagship with exclusive product, fixtures and displays that it hopes to replicate in other Nordstrom units.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast