Urban Outfitters Inc., a prominent retail company based in Philadelphia, has reported impressive double-digit growth in revenue during the 2021 holiday season compared to the same period in 2019. This growth can be attributed to the company’s strong performance in the digital channel, which helped offset the negative sales in physical retail stores resulting from reduced in-store traffic.

Urban Outfitters operates multiple brands, including Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly, and Menus & Venues. In their earnings release statement, the company emphasized that comparing fiscal 2022 results to fiscal 2020 provides a more accurate measurement of their business performance due to the significant impact of Covid-19 on operations in fiscal 2021, which included mandated store closures.

Net sales for the two months ending December 31, 2021, witnessed a 14.6% increase compared to the same period in 2019. This growth was primarily driven by the comparable retail segment, where sales increased by 14%. The digital channel also experienced strong double-digit growth, partially offsetting the negative sales in retail stores caused by reduced store traffic. Among the different brands, the Free People Group saw the highest increase in comparable retail segment net sales with a notable 47%, followed by Anthropologie Group with 15% and Urban Outfitters with 3%. Overall, total retail segment sales increased by 15%, while wholesale segment sales decreased by 18%, mainly due to a reduction in sales to promotional wholesale customers by the Free People Group.

For the eleven months ending December 31, overall company sales increased by 14.4% compared to the same period in 2019. The comparable retail segment sales witnessed a significant 16% increase, driven by robust double-digit growth in digital channel sales. However, retail store sales experienced a low double-digit decline due to reduced store traffic. The wholesale segment also suffered a double-digit decline with a decrease of 22% for the eleven months. This decline can be attributed primarily to a reduction in sales to promotional wholesale customers by the Free People Group.

In addition to their revenue growth, Urban Outfitters expanded their physical presence in 2021 by opening a total of 56 new retail locations. This includes 29 new Free People Group stores, 17 Urban Outfitters stores, 9 Anthropologie Group stores, and 1 Menus & Venues restaurant.

Overall, these results highlight Urban Outfitters’ success in navigating the challenging retail landscape and capitalizing on the opportunities presented by digital channels. The company’s focus on expanding its brand presence, both online and offline, has contributed to its continued growth and resilience in the face of the Covid-19 pandemic.

Useful links:
Urban Outfitters Official Website
Urban Outfitters Investor Relations