URBN Reports Record Holiday Sales
January 09 2020 - 04:30PM
Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products
and services company which operates a portfolio of global consumer
brands comprised of Anthropologie, BHLDN, Free People, Terrain,
Urban Outfitters and Nuuly brands and the Food and Beverage
division, today announced net sales for the two and eleven months
ended December 31, 2019.
Total Company net sales for the two months ended
December 31, 2019, increased 2.9% over the same period last year.
Comparable Retail segment net sales increased 3%, driven by growth
in the digital channel, partially offset by negative retail store
sales. By brand, comparable Retail segment net sales increased 8%
at Free People and 5% at the Anthropologie Group and decreased 1%
at Urban Outfitters. Total Retail segment net sales increased 3%.
Free People’s exceptional Retail segment performance was driven by
strong, full price sales, as the brand was less promotional during
the holiday season. Anthropologie and Urban Outfitters
businesses were driven in part by increased promotional activity in
apparel, which will put greater pressure on our fourth quarter
gross profit margin than originally anticipated. Wholesale segment
net sales decreased 9% due to an 11% decrease in Free People, which
was greater than projected. Lastly, in order to meet customer
delivery expectations, we spent more on delivery and logistics
expenses than originally planned.
For the eleven months ended December 31, 2019,
total Company net sales increased 0.5% over the same period last
year. Comparable Retail segment net sales increased 1%, driven by
growth in the digital channel, partially offset by negative retail
store sales. Total Retail segment net sales increased 1%. Wholesale
segment net sales decreased 5%.
During the eleven months ended December 31,
2019, the Company opened a total of 25 new retail locations
including: 10 Free People stores, 9 Anthropologie Group stores and
6 Urban Outfitters stores; and closed 7 retail locations including:
3 Anthropologie Group stores, 1 Free People store, 1 Urban
Outfitters store and 2 Food and Beverage restaurants. During the
eleven months ended December 31, 2019, two franchisee-owned stores
were opened including: one Anthropologie Group store and one Urban
Outfitters store.
Urban Outfitters, Inc., offers
lifestyle-oriented general merchandise and consumer products and
services through a portfolio of global consumer brands comprised of
250 Urban Outfitters stores in the United States, Canada and Europe
and websites; 233 Anthropologie Group stores in the United States,
Canada and Europe, catalogs and websites; 144 Free People stores in
the United States, Canada and Europe, catalogs and websites, 11
Food and Beverage restaurants, 5 Urban Outfitters franchisee-owned
stores, 1 Anthropologie Group franchisee-owned store and 1 Free
People franchisee-owned store, as of December 31, 2019. Free
People, Anthropologie Group and Urban Outfitters wholesale sell
their products through approximately 2,300 department and specialty
stores worldwide, digital businesses and the Company’s Retail
segment.
This news release is being made pursuant
to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Certain matters contained
in this release may constitute forward-looking statements. When
used in this release, the words “project,” “believe,” “plan,”
“will,” “anticipate,” “expect” and similar expressions are intended
to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Any
one, or all, of the following factors could cause actual financial
results to differ materially from those financial results mentioned
in the forward-looking statements: the difficulty in predicting and
responding to shifts in fashion trends, changes in the level of
competitive pricing and promotional activity and other industry
factors, overall economic and market conditions and worldwide
political events and the resultant impact on consumer spending
patterns, the effects of the implementation of the United Kingdom's
referendum to withdraw membership from the European Union (commonly
referred to as “Brexit”), including currency fluctuations, economic
conditions, and legal or regulatory changes, any effects of war,
terrorism and civil unrest, natural disasters or severe or
unseasonable weather conditions, increases in labor costs,
increases in raw material costs, availability of suitable retail
space for expansion, timing of store openings, risks associated
with international expansion, seasonal fluctuations in gross sales,
the departure of one or more key senior executives, import risks,
changes to U.S. and foreign trade policies, including the enactment
of tariffs, border adjustment taxes or increases in duties or
quotas, the closing or disruption of, or any damage to, any of our
distribution centers, our ability to protect our intellectual
property rights, risks associated with digital sales, our ability
to maintain and expand our digital sales channels, response to new
store concepts, our ability to integrate acquisitions, failure of
our manufacturers and third-party vendors to comply with our social
compliance program, changes in our effective income tax rate, the
impact of the U.S. Tax Cuts and Jobs Act, changes in accounting
standards and subjective assumptions, regulatory changes and legal
matters and other risks identified in the Company’s filings with
the Securities and Exchange Commission. The Company disclaims any
intent or obligation to update forward-looking statements even if
experience or future changes make it clear that actual results may
differ materially from any projected results expressed or implied
therein.
Contact: Oona McCulloughDirector of
Investor Relations(215) 454-4806
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