Urban Outfitters’ 3Q Lifted by Sales, Inventory Control
Philadelphia Urban Outfitters Inc. said Thursday its third-quarter profit rose 31%, helped by strong performance at namesake stores and tight inventory controls.
Urban Outfitters’ reported that its profit for the three months ended Oct. 31 rose to $59.3 million from $45.4 million last year. Results include a $2.9 million write-off of an auction-rate preferred stock investment.
As the company reported last week, sales rose 26% to $478 million from $379.3 million. Meanwhile, same-store sales across all three of the company’s brands were up 17% at Urban Outfitters stores, 2% at higher-priced Anthropologie stores and 4% at Free People stores.
The company said its operating margin rose 47% and expects “rigorous management” of inventory to position Urban Outfitters appropriately for the holiday season.
Inventory grew 19% as of Oct. 31 compared with a year ago, mainly due to inventory for new retail stores. Inventory for stores open at least one year grew just 2%. The company has opened 41 new stores during the nine months ended Oct. 31.
Wal-Mart partners with Army Reserve
BENTONVILLE, Ark. The U.S. Army Reserve and Wal-Mart have signed an agreement that allows both organizations to recruit, train and employ individuals interested in both serving the nation and pursuing a career in the retail industry.
The initiative provides Army Reserve Soldiers opportunities for employment with Wal-Mart after they successfully complete military occupational specialty training (MOS). The Army Reserve and Wal-Mart will work together to recruit, license and offer training reciprocity to qualified Soldier candidates. The agreement commits Wal-Mart to interviewing and considering all qualified, participating Soldiers for employment upon completion of MOS training.
“We are excited and honored to have U.S. Army Reserve Soldiers join our team,” said Lee Scott, president and ceo of Wal-Mart. “Our company has a longstanding commitment to providing employment opportunities in the community. We have also long recognized those who serve in the military, and it is a privilege to assist the troops and their Families with this new initiative.”