Urban’s third-quarter profit came in at $88.9 million, up 15.8 percent from a year ago and up 59.7 percent year-on-year in 2019. Diluted earnings per share stood at 89 cents, 5 cents higher than the 84 cents analysts had predicted.
But the company said comparable sales were up 14% with what it describes as “strong double-digit growth in digital channel sales, partially offset by negative numbers.” on average retail Store sales were mainly due to a decrease in store traffic. ”
The cut in store traffic appears to have driven investors, who have pushed the company’s stock lower. 11.7 percent to $32.91 in after-hours trading despite other bullish reports.
In a conference call with analysts, company executives said supply chain contingencies – which have vexed retailers nationwide – hurt sales. goods during the quarter, but also resulted in a low discount rate. Apparel inventories were lighter than the company expected at the start of the quarter, but merchandise has performed better over the past few weeks.
Total revenue for the three months ended October 31 was $1.1 billion, up 16.7 percent from a year earlier and 14.6 percent from two years ago, before the pandemic. Philadelphia’s largest corporate enterprise, Anthropologie Group, up 20.3% to $431.4 million while having the same name Urban dressers The division saw sales increase 5.5 percent to $415.9 million.
Pressed by analysts for supply-chain issues, chief executive Richard Hayne said the company is starting to get back into the groove.
For example, he said AnthropologieApparel’s inventory fell one percent in the middle of the double digits.
“Obviously that affected their sales,” he said. “As we received more inventory at the end of the third quarter – and even more now – the apparel inventory came back… and the computers basically exploded. We’re seeing pants that are worth twice as high in the apparel category. “
While Hayne pointed to some risks to the overall picture – inflation in particular – he said overall consumer demand will continue to remain strong for at least the first half of the year.
“If you take a look at some surveys like [University of Michigan’s Surveys of Consumers] you will get the impression that we are in a recession,” said the CEO. “But I have to tell you, that is not what we are seeing. It couldn’t be more different. Our customers seem optimistic. They are definitely in a buying mood. It seems to be trading not going up and she wants to participate in functions and with friends, doing things that she used to do in her normal life. ”
More from WWD:
https://wwd.com/business-news/financial/urban-outfitters-third-quarter-retail-richard-hayne-1235001927/ Urban Outfitters Merchandise Hits When Supply Chain Suffers Sluggish Stores – WWD