Urban Outfitters misses in Q4, plans 55-60 new stores in 2013
Philadelphia — Urban Outfitters Inc. reported Monday that profit for the fourth quarter fell to $39.3 million, from $75.2 million a year earlier. Sales rose 9% to $730.6 million, missing Wall Street’s expected $740 million in revenue.
The operator of Anthropologie, Free People and Urban Outfitters stores said heavy discounting over the holidays took a big toll on margins; in fact, margins have declined for at least five quarters as the retailer has made major markdowns to clear out slow-moving merchandise.
“I am pleased that we managed our inventories to appropriate levels at year-end even though our margins during the quarter suffered as a result,” CEO Richard Hayne said in a statement.
Same-store sales for the quarter dipped 1%.
Last year, Urban Outfitters opened 57 stores and said it is planning comparable expansion for 2013. In its conference call with investors on Monday, the company said it plans to open 55 to 60 new stores in fiscal 2013, with 13 of those slated to open in the first quarter.
Retail sales continue to grow in 2012
WASHINGTON — Retail sales continue to rise for 2012 as the U.S. Census Bureau reported results of February sales on Tuesday.
U.S. retail and food services sales for February, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $407.8 billion, an increase of 1.1% from the previous month and 6.5% above the year-ago period. Retail trade sales were up 1.1% from last month and 6.3% above last year.
Looking across retail categories, adjusted sales at grocery stores increased 0.3% to roughly $52.3 billion. Health and personal care stores held steady at $23.2 billion. Retail sales for drug stores and pharmacies were not recorded; however, sales experienced a slight gain from December to January (about $19.3 billion).
Safeway tosses Frisby additional responsibilities
PLEASANTON, Calif. — Safeway has given Steve Frisby, the added responsibility of the company’s Seattle division after the exit of the current president, Greg Sparks. Frisby, who joined Safeway in 1972, currently serves as the president of its Portland, Ore., division.
"Taking on this dual role is well suited to Steve’s extensive knowledge of our Northwest markets and his considerable leadership skills," said Safeway chairman, president and CEO Steve Burd. "His demonstrated ability to get results across a variety of competitive environments will serve Safeway’s interest well in the region."