Urban Outfitters, Inc. (URBN) has reported an 11.79 percent fall in profit for the quarter ended Jan. 31, 2017. The company has earned $64.29 million, or $0.55 a share in the quarter, compared with $72.88 million, or $0.61 a share for the same period last year.
Revenue during the quarter went up marginally by 1.65 percent to $1,030.16 million from $1,013.41 million in the previous year period. Gross margin for the quarter contracted 142 basis points over the previous year period to 33.04 percent. Total expenses were 90.34 percent of quarterly revenues, up from 88.51 percent for the same period last year. That has resulted in a contraction of 183 basis points in operating margin to 9.66 percent.
Operating income for the quarter was $99.53 million, compared with $116.45 million in the previous year period.
"We are pleased to announce record fourth quarter and full year sales driven mostly by the continued success in the direct-to-consumer channel," said Richard A. Hayne, chief executive officer. "As we enter a new year, we will continue to shift our efforts and spend into our fastest growing channel," finished Mr. Hayne.
Working capital increases marginally
Urban Outfitters, Inc. has recorded an increase in the working capital over the last year. It stood at $528.47 million as at Jan. 31, 2017, up 4.62 percent or $23.34 million from $505.13 million on Jan. 31, 2016. Current ratio was at 2.50 as on Jan. 31, 2017, down from 2.53 on Jan. 31, 2016.
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