Urban Outfitters Inc
) came up with strong sales results for the key holiday season.
The company stated that net sales for the two months period ended
December 31, 2012, jumped 15% year over year to $666 million.
Comparable retail segment net sales, including comparable
direct-to-consumer channel, escalated 9%, reflecting robust sales
across all brands.
Comparable retail segment net sales jumped 33% at Free People,
while it rose by 10% and 5% at Urban Outfitters and
Anthropologie, respectively. Net sales at Direct-to-consumer
increased 38%, while the wholesale segment marked an increase of
21% in net sales for the period.
Amid the positives, comparable-store net sales inched down 1%,
reflecting the impact of charges associated with
Direct-to-consumer returns at stores. Excluding the charges,
comparable store net sales increased in the low single-digit.
For the 11-month period ended December 31, 2012, total net
sales surged 12% year over year to $2.6 billion, while comparable
retail segment net sales increased 6%. The company stated that
comparable-store net sales edged down 1%, while
Direct-to-consumer net sales soared 29%. Wholesale segment marked
an increase of 11% in net sales during the period.
The company opened 46 new stores during the 11 months period
ended December 31, 2012, including 15 Free People stores, 16
Urban Outfitters stores, 13 Anthropologie stores, 1 BHLDN store
and 1 Terrain garden center. Urban Outfitters closed 1
Anthropologie store during the period.
Currently, we maintain a long-term Neutral recommendation on
the shares of Urban Outfitters. Moreover, the company, which
faces competition from
Abercrombie & Fitch Co.
), holds a Zacks Rank #3 (Hold).
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