Urban Outfitters, Inc. has reported impressive first-quarter sales of $927.4 million, a significant increase of 57.6% compared to the previous year. This growth also represents a 7.3% rise compared to the same period two years ago. The company attributes these outstanding results to strong demand and exceptional execution by its teams.

To provide a more meaningful measurement, Urban Outfitters compared its latest results to those achieved in the first quarter of 2019. Based on this comparison, the company’s comparable retail segment sales saw a 10% increase, driven mainly by double-digit growth in its digital channel. Among its brands, the Free People Group saw the highest growth with a 44% rise in sales, followed by a 9% increase for the Urban Outfitters brand and a 1% growth for the Anthropologie Group.

While retail segment sales experienced a 10% boost, wholesale revenues declined by 24%. This can be attributed to efforts to realign the Free People brand with a renewed focus on regular price selling. In terms of year-over-year comparisons, Urban Outfitters’ quarterly comparable retail segment sales rose by an impressive 51% due to the significant impact of the Covid-19 pandemic on the previous year’s results. The Free People Group experienced a 77% surge, followed by a 50% increase for the Anthropologie Group and a 42% rise for the Urban Outfitters brand. The company’s total retail segment sales also increased by 53%, while wholesale revenues skyrocketed by 196%.

The company reported a net income of $53.5 million, or $0.54 per diluted share, for the quarter, which is a significant improvement from the prior-year period’s loss of $138.4 million. Two years ago, Urban Outfitters’ first-quarter income was $32.6 million, or $0.31 per diluted share. CEO Richard A. Hayne expressed his satisfaction with the first-quarter results, stating that it was a record-breaking quarter in terms of sales, markdown rates, and earnings per share. Hayne also mentioned that sales trends have continued to accelerate in May, which is a positive indicator for the company’s second-quarter results.

During the last quarter, Urban Outfitters opened six new locations while closing three. The company currently operates approximately 650 stores in the United States, Canada, and Europe. With its impressive first-quarter sales, Urban Outfitters seems well-positioned for continued growth and success in the retail market.

Useful Links:

Urban Outfitters official website
Urban Outfitters first-quarter earnings article