Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Urban Outfitters profits plunge

US lifestyle retailer Urban Outfitters posted a 47.8% drop in profits for its fourth quarter as discounting impacted margins.

For the three months to January 31 net income fell to $39.3m (£25.1m) from $75.2m (£48.0m) a year before. However sales for the same period rose 9.3% to $730.6m (£466.7m) from $668.4m (£426.9m).

The company, which operates 429 Urban Outfitters, Free People and Anthropologie stores, plans to open another 55 to 60 stores this year with a focus on North America and Europe. It is also looking to launch in Asia, increase mobile marketing and expand wholesale distribution in Europe and Asia.

Chief executive officer Richard Hayne said: “I am pleased that we managed our inventories to appropriate levels at year end even though our margins during the quarter suffered as a result. Our rate of full-priced selling has improved from fourth quarter levels as we seek to re-establish our historic full-price selling penetration.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.