Urban Outfitters has posted a 17% rise in third-quarter net profit due to improved margins and a reduction in the number of markdowns.
Net income reached $60 million over the three months to October 31 compared to $51 million last year. Income from operations increased 27.5% to $93.5 million.
Net sales rose 14% to $693 million, while comparable store sales edged down 1%. Direct-to-consumer sales jumped 36% and wholesale sales grew 7%. Comparable sales at its retail division were up 8% driven by gains within its Free People, Urban Outfitters and Anthropologie brands.
Gross profit rate improved 222 basis points due to a reduction in the number of markdowns.
“Favorable customer response to our product offerings and better marketing resulted in record third quarter sales and significant margin improvement,” said CEO Richard Hayne. “We see this trend continuing into the fourth quarter which bodes well for our holiday season.”
For more fashion and apparel industry news, go to just-style.com