Urban Outfitters, Inc. (NASDAQ:URBN) reported its fourth-quarter results after the bell, and while the company’s adjusted earnings impressed, its GAAP profit underwhelmed.
The retailer announced net income of $1.3 million, or a penny per share, which was a steep decline from its year-ago net income of 55 cents per share. This slide can be attributed to the company’s $64.7 million tax charge for repatriation and a write-down of deferred tax assets linked with the changes in the U.S. tax code.
On an adjusted basis, Urban Outfitters brought in 69 cents per share, which was above the Wall Street consensus estimate of 65 cents per share, according to FactSet. Analysts were expecting GAAP net income to be 63 cents per share, per FactSet.
Revenue amounted to $1.09 billion for the period, beating its year-ago total of $1.03 billion. Wall Street was calling for sales of $1.09 billion, according to data compiled by FactSet. Urban Outfitters’ comparable retail sales in its namesake brand gained 2% year-over-year.
This deleveraging was affected by increased expedited shipments around the holiday and higher penetration of its digital channel.
URBN stock fell about 7% after the bell Tuesday on the earnings news.
