Urbn reports record revenues of $102.9m in Q3
According to the group, the increase in gross profit rate was primarily due to higher initial merchandise markups for all segments primarily driven by Company cross-functional initiatives
Urbn, which operates a portfolio of global consumer brands including Urban Outfitters, Anthropologie, Free People, FP Movement and Nuuly, has announced record third quarter net income of $102.9m (£80.82m) for the three months ended October 31, 2024.
Its total retail segment net sales increased 3.2%, with comparable retail segment net sales increasing 1.5%. 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.
Net sales increased 5.8% at Anthropologie to $587m (£462.3m) and 5.3% at Free People to $365.8m (£288.1m), however sales decreased by 8.9% to $300m (£236.2m) at Urban Outfitters.
The group’s wholesale segment net sales increased 17.4% to $82.06m (£64.5m) driven by a 20.3% increase in Free People wholesale sales. Urbn said that this was due “to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales”.
Urbn stated that sales increased due to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales.
Additionally, its gross profit increased 9.4% to $497.3m (£390.6m) and its total net sales increased 6.3% to a record $1.36bn (£1.06bn) in Q3.
Meanwhile, its gross profit rate increased by 105 basis points compared with the three months ended October 31, 2023.
According to the group, the increase in gross profit rate was primarily due to higher initial merchandise markups for all segments primarily driven by Company cross-functional initiatives.
Richard A. Hayne, chief executive officer, said: “We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – Retail, Subscription and Wholesale. Additionally, we’re optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results.”
