Urban Outfitters Inc. has announced impressive second-quarter results, with record-breaking sales growth for the first half of fiscal 2022. The company’s revenues for Q2 rose by 2.2% to $1.18 billion, marking a new record. Over the six-month period ending on July 31, revenues increased by 7.2% to $2.2 billion compared to the previous year.

The significant sales growth was largely driven by the Anthropologie Group and Free People Group, which experienced respective increases of 12% and 11% in comparable retail segment net sales. However, the Urban Outfitters brand saw a decline of 4% in net sales.

Urban Outfitters’ clothing rental service, Nuuly, also performed exceptionally well, with a substantial increase in net sales fueled by a higher number of subscribers. An analysis of different channels revealed that total retail segment net sales increased by 6%, with comparable retail segment net sales growing by 5%. The wholesale segment also saw a 3% increase in net sales, primarily due to a 6% rise in wholesale sales for the Free People Group.

Although the overall results were positive, there were some areas of decline. Urban Outfitters experienced a downturn in wholesale sales, partially offsetting the increase in net sales for the Free People Group. Additionally, retail segment net sales for Urban Outfitters dropped by 9%, while the Free People Group and Anthropologie Group saw respective increases of 8% and 7%.

CEO Richard Hayne expressed satisfaction with the record-breaking sales in Q2, crediting the strong performances of the Anthropologie and Free People brands. The company recorded a net income of $59 million and earnings per diluted share of $0.64 for the quarter. In the first six months of the fiscal year, net income reached $91 million, with earnings per diluted share of $0.96.

In the first half of the year, Urban Outfitters expanded its retail presence by opening 16 new locations, including stores for the Free People Group, Urban Outfitters, and Anthropologie Group. Additionally, the company closed four retail locations for the Urban Outfitters, Free People Group, and Anthropologie Group brands.

Overall, Urban Outfitters Inc. has experienced robust sales growth in Q2, driven by the success of the Anthropologie and Free People brands. Despite some challenges in certain areas, the company remains optimistic about its performance for the rest of fiscal 2022.

Useful links:
1. Urban Outfitters Inc. Official Website
2. Urban Outfitters Stock Performance Analysis