Stock Monitor: Destination XL Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 17, 2018 / Active-Investors.com has just released a free earnings report on Urban Outfitters, Inc. (NASDAQ: URBN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=URBN. The Company reported its fourth quarter fiscal 2018 and full fiscal 2018 operating and financial results on March 07, 2018. The clothing and accessories retailer beat earnings estimates, while its revenues were in-line with market expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Destination XL Group, Inc. (NASDAQ: DXLG), which also belongs to the Services sector as the Company Urban Outfitters. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Urban Outfitters most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2018, Urban Outfitters' net sales increased 5.7% to a record $1.09 billion compared to $1.03 billion in Q4 FY17. The Company's revenue numbers met analysts' estimates of $1.09 billion.
For Q4 FY18, Urban Outfitters' Retail segment's comparable net sales increased 4% on a y-o-y basis, driven by a strong, double-digit growth in the digital channel, partially offset by negative retail store sales. By brand, in the reported quarter, the Company's Retail segment's comparable net sales increased 8% at Free People, 5% at the Anthropologie Group, and 2% at Urban Outfitters. The Company's Wholesale segment's net sales increased 6.3%.
For the full fiscal year ended January 31, 2018, Urban Outfitters' net sales increased to $3.62 billion, up 2.0% compared to $3.55 billion in FY17.
During Q4 FY18, Urban Outfitters' gross profit rate decreased by 176 basis points and its adjusted gross profit rate decreased 113 basis points versus the year ago same period. The decline in the adjusted gross profit rate was primarily driven by deleverage in delivery and logistics expenses and initial merchandise mark-ups. As of January 31, 2018, Urban Outfitters' total inventory increased 3.8% on a y-o-y basis. The increase in inventory was related to a 3% increase in the Retail segment's comparable inventory at cost.
For Q4 FY18, Urban Outfitters' selling, general, and administrative expenses (SG&A) increased 3.8% to $249.85 million on a y-o-y basis. The Company's adjusted SG&A increased by 2.9% on a y-o-y basis, and when expressed as a percentage of net sales, leveraged 62 basis points versus the prior year's comparable period. The leverage for the reported quarter was primarily due to the net savings associated with Urban Outfitters' store reorganization project, partially offset by increased investments in digital marketing.
Urban Outfitters' effective tax rate was 98.6% in Q4 FY18 compared to 34.9% in Q4 FY17. The increase in the effective tax rate for the reported quarter was primarily due to a one-time charge on the Company's foreign earnings and profits, as well as a write down of certain net deferred tax assets in relation to the Tax Cuts and Jobs Act (TCJA) of approximately $64.7 million.
For Q4 FY18, Urban Outfitters' net income was $1.32 million, or $0.01 per diluted share, compared to $64.29 million, or $0.55 per diluted share, in Q4 FY17. For the reported quarter, the Company's adjusted net income was $0.69 per diluted share compared to $0.57 per share in the prior year's corresponding quarter. Urban Outfitters' earnings beat Wall Street's estimates of $0.65 per share.
For FY18, Urban Outfitters reported a net income of $108.26 million, or $0.96 per diluted share, compared to $218.12 million, or $1.86 per diluted share, in FY17.
During FY18, Urban Outfitters repurchased and subsequently retired 8.1 million common shares for approximately $157 million. These repurchases completed the Board's February 23, 2015, repurchase authorization, leaving 17.9 million common shares remaining under the Board's August 22, 2017, authorization to repurchase 20 million common shares.
During FY18, Urban Outfitters opened a total of 18 new locations, including 8 Free People stores, 5 Urban Outfitters stores, 4 Anthropologie Group stores, and 1 Food and Beverage restaurant. In FY18, the Company closed 11 locations, including 3 Free People stores, 2 Urban Outfitters stores, 3 Anthropologie Group stores, and 3 Food and Beverage restaurants.
Stock Performance Snapshot
April 16, 2018 - At Monday's closing bell, Urban Outfitters' stock rose 1.72%, ending the trading session at $39.61.
Volume traded for the day: 2.05 million shares.
Stock performance in the last month - up 11.96%; previous three-month period - up 14.35%; past twelve-month period - up 76.67%; and year-to-date - up 12.98%
After yesterday's close, Urban Outfitters' market cap was at $4.30 billion.
Price to Earnings (P/E) ratio was at 25.46.
The stock is part of the Services sector, categorized under the Apparel Stores industry. This sector was up 1.1% at the end of the session.
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