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.”