Urban Outfitters reports ‘record’ Q2 sales of $1.35bn
The increase in gross profit dollars was due to higher net sales and the improved gross profit rate
US lifestyle brand Urban Outfitters has reported a 6.3% increase in total net sales to a “record” $1.35bn (£1.03bn) for the three months ended 31 July 2024.
The brand that operates a portfolio of global consumer brands that also includes Anthropologie, Free People and FP Movement also recorded a net income of $117.5m (£89.5m).
The group’s gross profit also increased 8.3% to $493.3m (£376.0m) from $455.6m (£347.3m), while its gross profit rate increased by 68 basis points compared with the same period in the prior year.
It stated that the increase in gross profit rate was primarily due to higher initial merchandise markups for all segments primarily driven by company cross-functional initiatives, partially offset by higher retail segment merchandise markdowns, primarily at the Urban Outfitters brand.
The increase in gross profit dollars was due to higher net sales and the improved gross profit rate.
Additionally, the group’s total retail segment net sales was up 3.1% to $1.19bn (£910m), with comparable retail segment net sales increasing 2.0%. The increase in retail segment comparable net sales was driven by low single-digit positive growth in both digital channel sales and retail store sales.
Comparable retail segment net sales increased 7.1% to $365.1m (£278.3m) at Free People and 6.7% to $569.1m (£433.8m) at Anthropologie. However, Urban Outfitters recorded a decline of 9.3% to $316.7m (£241.4m).
Nuuly segment net sales saw a rise of 62.6% to $90.6m (£69.06m) primarily driven by a 55% increase in average active subscribers in the current quarter versus the prior year quarter.
Moreover, the group’s wholesale segment net sales also increased 15.1% to $64.8m (£49.40m) driven by a 17.5% increase in Free People wholesale amid an increase in sales to department stores and specialty customers, partially offset by a decrease in Urban Outfitters wholesale sales.
Richard A. Hayne, chief executive officer, said: “We are pleased to report record second quarter sales fueled by strength across all three segments – Retail, Nuuly and Wholesale.
“Equally impressive, four of our five brands delivered record operating profits during the second quarter.”
