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.
@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)