Urban Outfitters posts record second-quarter sales

By

Benjamin Fitzgerald

Published
Aug 23, 2023

Urban Outfitters Inc. announced on Tuesday total company net sales for the three months ended July 31 increased 7.5% to a record $1.27 billion, on the back of increases at its Free People and Anthropologie brands.

The Philadelphia-based company said ​retail segment sales increased 5.9% for the quarter, with comparable retail segment sales increasing 4.9%, driven by mid-single-digit positive growth in both retail store sales and digital channel sales.

By brand, comparable retail sales increased 26.9% at the Free People Group and 10.6% at the Anthropologie Group, offsetting a decrease of 14.1% at Urban Outfitters.

Wholesale segment sales decreased 5.2%, after a 6.5% decrease in Free People Group wholesale sales, due to a drop in sales at department stores, while Urban Outfitters wholesale sales increased by $0.5 million.

Nuuly sales increased by $27 million driven by an 85% increase in subscribers, versus the end of the prior year’s comparable quarter.

The company said net income for the quarter totalled $104.1 million, with earnings per diluted share of $1.10 for the three months.

“We are proud to report record second quarter sales that helped drive a 72% increase in EPS,” said Richard Hayne, chief executive officer. “Also gratifying is that Q2’s sales strength has continued to date in Q3."

For the six months ended July 31, total company net sales increased 6.7% to a record $2.39 billion, while net income was $156.9 million with earnings per diluted share of $1.67.

The earnings update comes three months after the U.S. fashion and lifestyle giant clocked a record-breaking first-quarter sales of $1.1 billion earlier in the year.