Urban Outfitters sales rise by 1.4% in third quarter boosted by online

Urban Outfitters stuck in third quarter. The American company, owner of Anthropologie and Free People, has ended the third quarter of its fiscal year with a profit of 56 million dollars, down from the 77.5 million dollars reached in the same period last year. Anthropologie has outperformed the Urban Outfitters brand with a revenue of 398 million dollars.

The decrease in gross profit was driven by higher markdowns, deleverage in delivery and logistics expenses and lower wholesale segment margins, as stated by Richard A. Hayne, chief executive officer of the company.

In the three months ended on October 31, Urban Outfitters registered a revenue of 938 million dollars, 0.2% less than in the same period of the previous year, when the company reached 973 million dollars.  

 Urban Outfitters opened nineteen stores in the nine months ended Oct 31

By brands, Anthropologie has outperformed the results of the eponymous chain, which raised its revenue by 1.2%, to 398 million dollars. Urban Outfitters reached 374 million dollars, 3.2% up from the same period the previous year, while Free People grew 1.3%, to 205 million of dollars.

Urban Outfitters opened nineteen new retail locations in the nine months ended October 31. Nine of the new stores were from Free People, six from Anthropologie and four from Urban Outfitters. During the period, the company closed six stores.

The company’s’ stock this quarterly represents a drop of -1.75%. A quarter ago, it was expected that the group retailer would post earnings of $0.58 per share when it actually produced earnings of $0.61, delivering a surprise of 5.17%.