Experimental feature

Listen to this article

Experimental feature

Urban Outfitters, the company behind Free People, Anthropologie and its eponymous brand stores, said on Tuesday that its fourth-quarter earnings missed by one cent.

The Philadelphia-based company said profits slid to $64.3m, or 55 cents a share, in the three months ended in January, compared with $72.9m, or 61 cents a share, in the year ago period. That was a penny shy of analysts’ estimates.

Net sales rose 2 per cent from a year ago to a record $1.03bn, broadly in line with estimates. Comparable retail segment sales were flat, with gains at Urban Outfitters and Free People offsetting a 2.9 per cent decline at Anthropologie.

The company, which opened two new restaurants and acquired six Vetri Family restaurants last year, said sales at its food and beverage division climbed to $6m in the fourth quarter and $22.7m for the full year.

The push into the casual dining sphere comes as Urban and other clothing retailers have struggled to grow during a challenging time for the industry, which faces increased competition from e-commerce companies like Amazon and fast-fashion retailers like Zara and H&M that mimic runway looks for cheap.

Shares in the company, which have declined nearly 11 per cent so far this year, perked up in extended trading, rising 2 per cent to $25.90.

Get alerts on Urban Outfitters Inc when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article