Philadelphia -- Urban Outfitters’ third quarter profit increased 18%, helped by strong results at its Anthropologie and Free People divisions. The company's quarterly earnings per share and sales both in above estimates.
Urban Outfitters’ net income totaled $70.2 million, up 18% from $59.5 million.
Net sales equaled about $774 million, a 12% increase from $692.9 million. Same-store segment net sales, which include the direct-to-consumer channel, increased 7%.
Same-store retail segment net sales increased 30% at Free People and 13% at Anthropologie and decreased 1% at Urban Outfitters. Wholesale segment net sales rose 21%. Revenue and earnings exceeded consensus estimates.
"Fueled by strong results at our Anthropologie and Free People brands, I am pleased to announce that the company delivered record third quarter sales and operating profits," said Richard A. Hayne, CEO. "Despite this solid performance we remain cautious about the fourth quarter given the likelihood of a highly promotional environment and this year's challenging holiday calendar.”
During the quarter the company opened nine new outlets. In the fourth quarter the company plans to open 10 new stores, including two Anthropologie stores, four Free People stores and four Urban Outfitters stores. This will bring the count of new stores opened during fiscal 2014 to 36, including 15 Urban Outfitters stores, 13 Free People stores and eight Anthropologie stores.