Urban Outfitters posted an impressive quarter to round out the year. The retailer reduced costs and increased margins to turn a 49.7% Q4 sales increase, from $117.6 million to $176.7 million, into a 120% increase in Q4 net income, from $8.4 million to $18.4 million. Margins in the fourth quarter increased 430 basis points from 37.2% to 41.5% and SG&A expenses as a percentage of sales decreased 170 basis points from 25.6% to 23.9%. EPS more than doubled with a 114.3% increase from 21¢ per share to 45¢ per share.
Year-to-date numbers followed the same pattern of increased sales and margins combined with decreased expenses adding up to higher net income and EPS. Sales jumped 29.7% from $422.8 million to $548.4 million. Gross margin rose 320 basis points, from 35.7% to 38.9% and SG&A expenses as a percentage of sales fell 70 basis points from 24.9% to 24.2%. Net income nearly doubled with a 76.6% increase, from $27.4 million to $48.4 million. Diluted EPS rose 69%, from 71¢ per share to $1.20 per share.
Urban Outfitters also reported a 110% increase in direct sales and a 21% increase in same store sales for the 2003 fiscal year. Wholesale sales also rose 29%.
Richard A. Hayne, Chairman and President, said, “We produced strong double-digit 'comp' store sales gains across all regions while significantly improving margins and leveraging SG&A expenses. In addition, we opened twenty-one new stores and produced explosive growth in our direct-to-consumer business. All of these factors contributed to record profits including a year over year operating margin increase of 398 basis points.”
