Nitheesh NH
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Source: Company reports/Coresight Research[/caption]
4Q19 Results
In fiscal 4Q19, Urban Outfitters revenues grew 3.7% to $1.13 billion, from $1.09 billion in the year ago period. Adjusted earnings per share (EPS) were $0.83, up 20.3% from the year-ago quarter.
Comparable sales were up 3.7% year over year. By brand, comparable retail segment net sales increased 4% at Free People, 4% at Urban Outfitters and 2% at Anthropologie. Comparable sales at the company’s wholesale segment increased 3.0%. The company stated that within its retail segment, its digital channel posted double-digit sales increases, driven by increased sessions and conversion rates. However, management commented that the average order value and units per transaction were down for the quarter.
The company reported that in North America, Urban Outfitters delivered positive comps, Europe experienced negative comps, but both geographies produced double digit growth in online sales which were offset by weaker trends in stores. In North America, management stated it saw positive comps in women's apparel, men's and women's accessories, shoes, home and beauty and that women’s bottoms drove apparel sales. In Europe, the company stated that positive sales in women's accessories and shoes were not able to offset a dip in apparel sales and that total comps for Europe were negative for the first time in 12 quarters. The company stated the Urban Outfitters’ brand recorded exceptional growth in China on its Tmall Global platform, and in the summer of 2019, the Urban Outfitters brand will launch on the larger Tmall Classic platform as well.
The company said its UO Rewards program has nearly 10 million members worldwide, and members accounted for more than 70% of total brand sales during the fourth quarter.
The Anthropologie group reported a 2% Retail segment comp increase. Both North America and Europe posted positive Retail segment comps, fuelled by growth in women's apparel and accessories – offset by weakness in the company’ gift category. The company announced it will launch APlus by Anthropologie, an apparel line that offers the same fashion messages of prints, fabrics and details as the brand's standard assortment, but in extended plus sizes. The line will be available online and in 10 Anthropologie stores on March 15, 2019.
Free People’s total brand revenue increased 4%, and the company stated Free People was the only branch to register positive store traffic in each month of the quarter. One of Free People's strategic initiatives is to grow international sales, and management reported the brand accomplished several milestones by opening its first store in Amsterdam in November 2018, followed by a store in the Covent Garden area of London in January 2019. The company plans to open store in London in spring 2019. Free People plans to open its first franchise location in Tel Aviv.
Store closures/openings in FY19: The company opened 23 stores and closed 11 stores during FY19, and as of January 31, 2019 the company had 625 stores.
Source: Company reports/Coresight Research[/caption]
4Q19 Results
In fiscal 4Q19, Urban Outfitters revenues grew 3.7% to $1.13 billion, from $1.09 billion in the year ago period. Adjusted earnings per share (EPS) were $0.83, up 20.3% from the year-ago quarter.
Comparable sales were up 3.7% year over year. By brand, comparable retail segment net sales increased 4% at Free People, 4% at Urban Outfitters and 2% at Anthropologie. Comparable sales at the company’s wholesale segment increased 3.0%. The company stated that within its retail segment, its digital channel posted double-digit sales increases, driven by increased sessions and conversion rates. However, management commented that the average order value and units per transaction were down for the quarter.
The company reported that in North America, Urban Outfitters delivered positive comps, Europe experienced negative comps, but both geographies produced double digit growth in online sales which were offset by weaker trends in stores. In North America, management stated it saw positive comps in women's apparel, men's and women's accessories, shoes, home and beauty and that women’s bottoms drove apparel sales. In Europe, the company stated that positive sales in women's accessories and shoes were not able to offset a dip in apparel sales and that total comps for Europe were negative for the first time in 12 quarters. The company stated the Urban Outfitters’ brand recorded exceptional growth in China on its Tmall Global platform, and in the summer of 2019, the Urban Outfitters brand will launch on the larger Tmall Classic platform as well.
The company said its UO Rewards program has nearly 10 million members worldwide, and members accounted for more than 70% of total brand sales during the fourth quarter.
The Anthropologie group reported a 2% Retail segment comp increase. Both North America and Europe posted positive Retail segment comps, fuelled by growth in women's apparel and accessories – offset by weakness in the company’ gift category. The company announced it will launch APlus by Anthropologie, an apparel line that offers the same fashion messages of prints, fabrics and details as the brand's standard assortment, but in extended plus sizes. The line will be available online and in 10 Anthropologie stores on March 15, 2019.
Free People’s total brand revenue increased 4%, and the company stated Free People was the only branch to register positive store traffic in each month of the quarter. One of Free People's strategic initiatives is to grow international sales, and management reported the brand accomplished several milestones by opening its first store in Amsterdam in November 2018, followed by a store in the Covent Garden area of London in January 2019. The company plans to open store in London in spring 2019. Free People plans to open its first franchise location in Tel Aviv.
Store closures/openings in FY19: The company opened 23 stores and closed 11 stores during FY19, and as of January 31, 2019 the company had 625 stores.
- Urban Outfitters opened five locations and closed five locations globally. Urban Outfitters had a total of 245 Urban Outfitters stores as of January 31, 2019.
- The company opened six Free People stores and closed three stores, for a total of 135 Free People stores open as of January 31, 2019.
- The company has a total of 227 Anthropologie stores, opening four stores and closing one store in FY19.
- The company opened three food and beverage stores for a total of 13 food and beverage stores and opened five franchise stores for a total of five stores as of January 31, 2019.
- Urban Outfitters plans to open nine stores and close three for a net of 251 stores by January 31, 2020.
- Anthropologie plans to open three stores and close seve for a net of 223 stores by January 31, 2020.
- Free People plans to open 10 stores and close three for a net of 142 stores by January 31, 2020.
- The company plans to open two food and beverage stores for a total of 15 food and beverage stores and four franchise-owned stores for a total of nine stores by January 31, 2020.