Urban Outfitters, posted record sales during Q1 2015, but it still fell short of Wall Street expectations for net income, sales and earnings per share. The retailer posted $0.25 in earnings per diluted share for the three months ended April 30, 2015, missing the $0.30 projection on sales of $757.6 million, according to Thomson Reuters.
Same store sales for the retailer’s Anthropologie, Free People and Urban Outfitters brands increased 4%, missing analysts’ expectations of 5.3%.
While the retailer experienced a 7.7% increase to $739 million in quarterly sales, net income dropped 13% to $32.78 million from $37.48 million in Q1 2014.
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Expenses related to the Urban Outfitters e-Commerce business and the relocation of its South Carolina distribution center to a new facility in Pennsylvania were both major factors in dropping margins from 34.8% to 33.3% in 2015, according to The Wall Street Journal.
Richard A. Hayne, CEO of Urban Outfitters, remained positive in his outlook for the company.
“I am pleased to announce record first quarter sales and positive retail segment comparable net sales at each of our brands,” Hayne said. “I believe our retail segment comparable net sales growth is being driven by the success of our omnichannel strategy.”
During the quarter, the retailer opened seven new stores, which includes four Free People stores, two Anthropologie Group stores and one Urban Outfitters store. The company closed one Urban Outfitters store in the quarter.
