Urban Outfitters Inc. profits sank in the fourth quarter and year as strong growth online wasn’t enough to compensate for the company’s weakening retail business.
Fourth-quarter profits fell 11.8 percent to $64.3 million, or 55 cents a share, on a 1.7 percent decline in sales, to $1.03 billion. Earnings came in 1 cent below the 56 cents analysts projected.
Comparable sales were flat for the quarter as double-digit growth in the company’s e-commerce business was offset by declines at its stores.
“As we enter a new year, we will continue to shift our efforts and spend into our fastest growing channel,” said Richard Hayne, chief executive officer.
For the full year, earnings slid 2.8 percent to $218.1 million, or $1.86 a diluted share, on a 2.9 percent drop in sales, to $3.55 billion. The lion’s share of the firm’s annual sales comes from its own retail segment, which drove revenues of $3.26 billion.
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