Urban Outfitters posts record-breaking sales, earnings per diluted share

By

Benjamin Fitzgerald

Published
May 24, 2023

Urban Outfitters, Inc. announced on Tuesday record-breaking sales for the first quarter of $1.11 billion, up 5%, on the back of single-digit gains in its comparable retail sales segment.

The Philadelphia-based company said total retail segment net sales increased 4%, with comparable retail segment net sales increasing 5%, partially offset by a 1% negative impact of foreign currency translation. The increase in retail segment comparable sales was driven by high single-digit growth in digital channel sales and low single-digit growth in retail store sales.

By brand, comparable retail segment sales increased 17% at the Free People Group and 13% at the Anthropologie Group, while decreasing 13% at Urban Outfitters.

Wholesale segment sales decreased 11%, driven by a 14% decrease in Free People Group wholesale sales due to a decrease in sales to department stores and specialty customers. Elsewhere, Urban Outfitters wholesale sales increased by $1 million.

Nuuly segment net sales increased by $28.6 million driven by a 118% increase in subscribers as of the current quarter end, versus the end of the prior year’s comparable quarter.

Net income for the three months ended April 30 was $52.8 million, compared to $31.5 million, with record first-quarter earnings per diluted share of $0.56, up from $0.33 in the prior-year quarter.

​“We are pleased to report record first quarter sales and earnings per share driven by a 5% increase in comparable retail segment sales, strong growth in Nuuly rent and a significant improvement in gross margins,” said Richard Hayne, chief executive officer. “We are equally pleased that Q1’s sales strength has continued quarter-to-date."