U.S. Apparel Urban Outfitters Fourth Quarter Net Profit Fell 7.2%

Recently,

The group announced its fourth quarter and full year earnings report, which was affected by weak clothing sales and gross margins.

As of January 31st, the group's net profit in the fourth quarter dropped from 7.2% US dollars in 2014 to US $80 million 200 thousand, and net profit in the whole year decreased from 8% US $323 million 400 thousand to US $222 million 400 thousand. The diluted earnings per share in the fourth quarter were 61 cents, and the annual diluted earnings per share were US $1.78.

Yesterday, after the group issued its earnings report, the share price rose 1.81% to 28.16 dollars, and its market value is about 3 billion 300 million dollars.

Urban Outfitters

Compared with the same period last year, it was unchanged at 1 billion 10 million US dollars, while the retail sales of the same store decreased by 2%.

By brand, net sales of Free People brand retail outlets rose 2%.

Net sales of Anthropologie and Urban Outfitters fell by 2% and 3% respectively.

Wholesale channel net sales increased by 29%, in part due to the third quarter shipments postponed to the fourth quarter.

In the three months ending January 31st, the gross profit margin fell by 12 basis points in the fourth quarter of last year, and the gross profit margin fell by 47 basis points throughout the year.

Although the fourth quarter

The performance is poor, but CEO Richard A. Hayne is still satisfied with the improvement of the brand's profit margin.

In addition, the performance of group expansion is more than expected, which brings confidence for future growth opportunities.

Last July, Urban Outfitters joined a five year, asset based revolving credit facility worth 400 million US dollars. JP Morgan Chase Bank acted as a management agency.

The new credit facility has replaced the existing US $175 million credit limit of Wells Fargo, which will expire in March 2019.

Since January 31st, a total of $150 million has been borrowed under the new revolving credit facility.

Urban Outfitters group is headquartered in Philadelphia, its clothing has always been cost-effective way of leisure, so many young people sought after.

In November last year, the group expanded its business to acquire a pizza chain called Pizzeria Vetri.

CEO Richard A. Hayne has said that he will adopt a new approach to expansion, while restaurant sales have been steadily rising. Consumers are more likely to spend money on eating out than buying more clothes.

As of January 31st, Urban Outfitters group opened 31 new stores.

Among them, Anthropologie accounted for 14, Free People brand accounted for 13, Urban Outfitters accounted for 4.

At the same time, the group closed 5 stores, Urban Outfitters and Anthropologie each accounted for 2, Free People accounted for 1.