Urban Outfitters, Inc. has reported a notable surge in revenues for the third quarter, driven by strong sales at its Anthropologie and Free People brands. The company, headquartered in Philadelphia, announced that its total net sales for the three-month period ending October 31 reached a record-breaking $1.18 billion, representing a 3.9% increase compared to the same period last year. While the retail segment net sales witnessed a 2% growth, with comparable retail segment net sales rising by 4%, there was a 2% decrease due to the impact of foreign currency translation.

The growth in retail sales can largely be attributed to the positive performance of the digital channel, which experienced a mid-single-digit sales increase, as well as in-store sales, which saw low single-digit growth. Analyzing the performance of individual brands, the Anthropologie Group saw a 13% rise in comparable retail sales, the Free People Group enjoyed an 8% increase, but Urban Outfitters experienced a decline of 9%. Wholesale sales faced a 3% decrease, primarily driven by a 4% decline in Free People Group wholesale sales, partially offset by a 6% increase in Urban Outfitters wholesale sales. Additionally, Nuuly sales soared by $22.6 million, primarily due to a remarkable 185% increase in subscribers during the quarter.

Despite the overall upturn in sales, the net income for the third quarter plummeted to $37.2 million, contrasting with $88.9 million during the same period last year. Earnings per diluted share also dropped to $0.40, compared to $0.89 previously. Richard Hayne, the CEO of Urban Outfitters, commented, “We are pleased to announce record Q3 sales fueled by strong ‘comps’ at the Anthropologie and Free People brands.”

Looking at the company’s performance for the nine months ending October 31, total net sales showed a 6% increase compared to the previous year. However, the nine-month income experienced a significant decrease, declining to $128.24 million from $266.66 million the previous year. Hayne expressed optimism about the upcoming Black Friday/Cyber Monday weekend, stating, “As we approach the all-important Black Friday/Cyber Monday weekend, we are encouraged by sales quarter-to-date.”

Useful links:
1. Urban Outfitters Official Website
2. Anthropologie Official Website