Mar 11, 2014
Urban Outfitters warns on current-quarter results after sales miss
Mar 11, 2014
Teen apparel retailer Urban Outfitters Inc reported lower-than-expected quarterly sales, citing severe winter weather in the United States, and said it was "very cautious" on its current-quarter performance.
Shares of the company, known for its Anthropologie, Free People and Urban Outfitters brands, fell 3 percent in extended trading.
The company's overall same-store sales, which include online sales, rose 1 percent in the fourth quarter ended Jan. 31.
However, comparable sales in the Urban Outfitters chain fell 9 percent as its merchandise failed to impress shoppers and severe winter weather dented traffic to its stores.
The brand contributed 43 percent to the company's total sales in the quarter.
Urban Outfitters' total sales rose 6 percent to $906 million, but came below the average analyst estimate of $925.9 million, according to Thomson Reuters I/B/E/S.
"I believe that current quarter sales at the Urban (Outfitters) brand will remain well below those achieved in the first quarter last year and margins will likely be under considerable pressure," Chief Executive Richard Hayne said on a conference call with analysts.
The company's net income rose 7.4 percent to $88.7 million, or 59 cents per share, from $82.5 million, or 56 cents per share, a year earlier.
Analysts on average had expected 54 cents per share.
Urban Outfitters' shares were down at $36.75 in trading after the bell. The stock closed at $37.51 on the Nasdaq on Monday.
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