Clothing and apparel retailer Urban Outfitters reported fourth quarter earnings of 27 cents per share, two cents below the mean estimate,� on net income of $39.3 million.
Shares of Urban Outfitters (URBN), whose brands include Anthropologie, Free People� and Terrain, fell 3%, or 93 cents, to $28.60 in after-hours trading. The stock had turned in a flat performance for the day.
Total net sales for the fourth quarter fiscal period rose to $730.6 million from $668.3 million in the prior quarter, but comparable store net sales decreased 1% for the quarter.
Further, gross profit margin declined by 955 basis points versus the prior quarter. The company attributed the decrease to markdowns needed to clear slow-moving women’s clothing at Anthropologie and Urban Outfitters, as well as “occupancy deleverage caused by negative comparable store net sales.”
“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,” said CEO Richard Hayne in the company’s prepared release.� “Our rate of full-priced selling has improved from fourth quarter levels as we seek to re-establish our historic full-price selling penetration.”
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