Urban Outfitters, Inc., the popular American fashion retailer, has announced impressive growth in net sales for its third quarter. The company experienced a significant 16.7% increase compared to the same period last year and a notable 14.6% rise compared to two years ago. This growth was largely driven by the company’s online channel, which helped offset the decline in in-store sales.

During the third quarter, which concluded on October 31, 2021, Urban Outfitters achieved record-breaking net sales of $1.13 billion. This marks a substantial increase from $969.6 million in the previous year and $987.5 million two years ago, before the Covid-19 pandemic disrupted the industry. To provide a more accurate basis of comparison, the company highlights the results from the pre-pandemic third quarter, revealing a 14% rise in comparable retail segment sales since then. This growth primarily stems from a strong double-digit increase in digital channel sales, alongside a slight decrease in in-store sales.

Examining the sales performance by brand, Urban Outfitters’ namesake label experienced a respectable 7% increase in quarterly retail segment sales compared to the same period two years ago. The Anthropologie Group saw a growth of 9%, while the Free People Group achieved an impressive 55% increase. However, the wholesale segment net sales declined by 15% over the same period.

Urban Outfitters’ net income for the third quarter amounted to $88.9 million, or $0.89 per diluted share, in comparison to $76.7 million, or $0.78 per diluted share, in the previous year’s third quarter. Two years ago, the net income stood at $55.7 million, or $0.56 per diluted share.

Expressing his satisfaction with the financial results, Urban Outfitters CEO Richard A. Hayne stated, “I’m pleased to announce our teams produced record Q3 sales and earnings.” Hayne also shared that November sales for all brands have surpassed the third-quarter rate, providing an optimistic outlook for the fourth quarter.

Year to date, Urban Outfitters has reported net sales of $3.22 billion, representing a remarkable 36.2% increase from the same nine-month period in the previous year, and a 14.3% increase from two years ago. The net income for this period amounted to $270 million, or $2.71 per diluted share.

Currently, Urban Outfitters operates over 670 stores across the United States, Canada, and Europe, including its well-known brands Urban Outfitters, Anthropologie, and Free People. Additionally, the company has diversified its business portfolio by running nine Menus and Venues restaurants.

Sources:
URL1
URL2