Urban Outfitters falls after EPS falls short of estimates
Urban Outfitters (NASDAQ:URBN) reported comparable retail segment sales jumped 14% in Q4. The retailer said the sales tally was driven by strong double-digit growth in digital channel sales, partially offset by low double-digit negative retail store sales primarily due to reduced store traffic.
By brand, comparable retail segment net sales increased 49% at Free People, were up 3% at Urban Outfitters and were 14% higher for the Anthropologie chain. Wholesale segment sales were down 22% during the quarter primarily from a reduction in Free People Group's sales to promotional wholesale customers. Nuuly segment net sales increased by $11.3M driven by the continued expansion of the number of subscribers since its launch at the end of the fiscal second quarter a year ago.
Gross margin fell 22 basis points during the quarter. The decrease in adjusted gross profit rate was primarily due to lower initial merchandise markups and an increase in delivery and logistics expenses.
Net income was $41M vs. $29M a year ago.
Total inventory at the end of the quarter was up 46.0% compared to total inventory a year ago. URBN said the increase in inventory was due to bringing certain product categories in earlier to protect against ongoing supply chain disruptions and delays and the increase in inbound transportation costs.
Shares of Urban Outfitters (URBN) dropped 2.32% after the earnings report.