Urban Outfitters sees ‘Holiday like” Activity, Numbers
Philadelphia-based Urban Outfitters (Nasdaq: URBN), which mails the Anthropologie apparel and home goods catalog, said net income increased 164% to $16.9 million for the period ended April 30, compared to $6.4 million last year. Quarterly net sales increased 59% to $170.3 million. As previously stated, direct-to-consumer sales increased 95%. Chairman/president Richard Hayne, termed sales and profits reached “holiday-like” levels in the first quarter, with operating margins nearing 17%. “We remain very optimistic about the summer season and even though sales comparisons become more difficult in this year’s second quarter, ‘comps’ in the first few weeks of Q2 continue to run very significantly ahead of plan,” he said in a statement.
Direct Marketing Declines Slightly at Tiffany New York-based high-end jewelry and gifts cataloger/retailer Tiffany & Co. (NYSE: TIF) saw sales in its direct marketing unit decline 1% in the first quarter to $36.9 million. A slight consolation: catalog and e-commerce combined increased 15% in average order size thanks to higher e-commerce orders. Sales to businesses declined 24%, as expected, due to Tiffany’s decision to discontinue its service award program last year.
Tiffany’s overall net sales increased 15%, to $457.0 million, compared with $395.8 million last year. Net earnings similarly climbed 12% to $40.3 million, compared with $35.9 million last year. U.S. retail sales increased 23% in the first quarter to $213.6 million. Comparable store sales rose 20% due to a 30% increase in Tiffany’s New York flagship store and 17% growth in branch store sales.
Net Loss Widens at Broder Bros. Philadelphia-based imprintable sportswear cataloger Broder Bros. posted first quarter net sales of $176.8 million compared to $75.9 million for the first quarter 2003. Net loss was $4.9 million for the quarter, compared to a net loss of $2.5 million for the first quarter last year. Results include Broder Bros’ September 2003 acquisition of Alpha Shirt Holdings, the parent of Alpha Shirt company.
First quarter 2004 results included $700,000 of severance related restructuring charges incurred in connection with the 2003 corporate headquarters consolidation plan, as well as additional warehousing, selling and administrative costs of $500,000. These costs are directly attributable to the company’s ongoing integration efforts, including expenses related to the information systems integration, integration related travel and relocation of certain key personnel to the Philadelphia headquarters. The Broder division generated net sales of $79.8 million and gross profit of $11.7 million. The Alpha division generated quarterly net sales of $97.0 million and gross profit of $19.4 million.
Annual, Quarterly Net Loss Narrows at Red Envelope Gifts merchant RedEnvelope (Nasdaq: REDE) narrowed its net loss for the fourth quarter and the year and beat sales from the year-ago period. The San Francisco–based company reported total net revenue increased 15%, to $17.3 million for the quarter ended May WHAT compared to $15.1 million in the fourth quarter of the prior fiscal year. Net loss was $2.3 million, compared to a net loss of $2.7 million last year. On an order basis, net revenue per order increased to $74 from $67 compared to the fourth quarter of last year, thanks to sales of more goods at full price. For the year, RedEnvelope net revenue increased 13%, to $79.3 million compared to $70.0 million for the prior fiscal year. The net loss was $5.1 million, compared to a net loss of $7.7 million last year.
Hanover Direct Reports Profitable First Quarter Edgewater, NJ-based Hanover Direct, which mails the Silhouettes, The Company Store, Domestications, Gump’s By Mail and International Male titles, reported a bottom-line improvement. Although it wasn’t from improvements in any of its businesses but due to the elimination of the preferred stock dividend accretion related to the Series B Participating Preferred Stock, which was part of the Chelsey recapitalization consummated in November 2003.
Hanover reported a net income of $400,000, compared with a net loss of $3.5 million last year. Total revenue fell 7% to $95.3 million for the quarter ended March 27, compared with last year. The decline was due to reduced catalog circulation for one of the company’s brands in order to limit the investment in catalog production costs and working capital necessary to maintain inventory for this brand.