Urban Outfitters Inc.‘s fourth quarter and year-end results mirrored the trend of strong online growth and flagging brick-and-mortar momentum seen at many retailers.
Net sales at Urban Outfitters increased 2 percent in the fourth quarter ended Jan. 31 , 2017 to $1.03 billion from $1.01 billion in the fourth quarter of 2016. Net sales for the year rose 3 percent to $3.5 billion from $3.4 billion last year.
Strong, double-digit growth in the direct-to-consumer channel offset lower retail store comparable net sales, the Philadelphia-based company said, noting that the prior year period benefitted from late shipments of third quarter bookings.
Comparable retail segment net sales increased 1 percent in the fourth quarter to $955,909 from $938,681 in last year’s fourth quarter. Wholesale segment net sales decreased by 1 percent to $74,249 in the fourth quarter from $74,725 in the prior year period.
Comparable retail net segment sales for the year rose 2.2 percent to $3.25 million from $3.18 million last year, while comparable wholesale segment net sales increased 11 percent to $288,904 from $260,179.
“We’re pleased to announce record fourth quarter and fiscal year 2017 revenues,” said Richard A. Hayne, Urban Outfitter’s chief executive officer.
The company in the 2017 fiscal year opened 29 new stores including, 15 Free People units, 10 Anthropologie Group stores and four Urban Outfitters locations. It closed three Anthropologie Group, two Free People and two Urban Outfitters stores. Urban Outfitters opened two new restaurants and acquired six Vetri Family restaurants, which fall under the company’s food and beverage division.