Urban Outfitters Inc.’s fourth-quarter profits fell 47.8 percent as the company cut prices to clear slow-moving women’s apparel, but Richard Hayne, who reclaimed the mantle of chief executive officer this year, is plotting a global bounce back.
This story first appeared in the March 13, 2012 issue of WWD. Subscribe Today.
Net income fell to $39.3 million, or 27 cents a diluted share, from $75.2 million, or 45 cents, a year earlier. Sales for the three months ended Jan. 31 rose 9.3 percent to $730.6 million from $668.4 million.
Hayne, who co-founded the firm and took it back over when Glen Senk left for David Yurman in January, told analysts on a conference call that the company would open stores in North America and Europe, launch a retail presence in Asia, increase mobile marketing and expand its wholesale distribution in Europe and Asia.
On the consumer, Hayne said: “We offer her things she wants in environments that inspire her. We talk to her and listen to her ideas and opinions. In short, we have a relationship with our customer and that relationship translates into sales.”
Last year, Urban Outfitters’ net income declined 32.1 percent to $185.3 million as sales rose 8.8 percent to $2.47 billion.
The company, which operates 429 Urban Outfitters, Free People and Anthropologie stores, plans to open another 55 to 60 stores this year.