Philadelphia-based lifestyle and services company Urban Outfitters, Inc. announced impressive fourth-quarter sales, achieving a “record” high despite a decline in its wholesale business. The company reported that net sales for the three months ended January 31, 2020, had increased by 3.6 percent compared to the same period the previous year, reaching an all-time high of $1.17 billion. This growth was primarily attributed to a 4 percent increase in comparable retail sales, with the digital channel playing a significant role. However, despite this positive performance, there was a negative impact on retail store sales.

Richard A. Hayne, the CEO of Urban Outfitters, expressed satisfaction with the company’s record-breaking fourth-quarter revenues. He attributed the growth mainly to the 4 percent increase in comparable retail segment sales. Hayne also acknowledged that higher-than-planned promotional activities were necessary to ensure that retail inventories were cleaned across all three brands, thus positioning them well for the upcoming spring season.

Analyzing the performance of Urban Outfitters’ brands, it was noted that Free People experienced the highest retail comps growth of 9 percent, followed by the Anthropologie Group with a 6 percent increase. However, Urban Outfitters saw flat sales growth in its retail segment. On the other hand, the wholesale segment experienced a decline of 10 percent, mainly due to a larger-than-expected drop of 12 percent at Free People.

Looking at the company’s annual performance, Urban Outfitters posted total sales of $3.98 billion. The fiscal year saw the opening of 26 new retail locations across its brand portfolio, but also the closure of 12 stores.

Urban Outfitters is scheduled to release its full fourth-quarter and fiscal year 2020 earnings results on March 3, 2020. This comprehensive overview of the company’s financial performance will provide insights into its future prospects. Despite the challenges faced by the wholesale business, Urban Outfitters remains optimistic about its overall performance and continued growth.

Useful Links:
Urban Outfitters official website
Retail Dive article on Urban Outfitters Q4 sales