Urban Outfitters full-year sales lift on solid fourth quarter; namesake brand remains sore spot

By

Benjamin Fitzgerald

Published
Feb 28, 2023

Urban Outfitters Inc. announced on Tuesday net sales for the three months ended January 31 increased 3.9% to a record $1.38 billion, capping off a strong 2022 which saw annual sales lift 5.4% to $4.8 million.

The Philadelphia-based company said total retail segment net sales increased 2% in the fourth quarter, with comparable retail segment net sales increasing 3%, partially offset by a 1% negative impact of foreign currency translation. The increase in retail segment comparable net sales was driven by mid- single-digit positive growth in retail store sales and low single-digit positive growth in digital channel sales, said the apparel group.

By brand, comparable retail segment net sales increased 15% at the Free People Group and 9% at the Anthropologie Group and decreased 10% at Urban Outfitters.

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Wholesale segment net sales decreased 7%, hit by a 13% decrease in Free People Group wholesale sales due to a decrease in sales to department stores, partially offset by growth in specialty and close out account partners. Meanwhile, Urban Outfitters wholesale sales increased by $3 million.

Nuuly segment net sales increased by $25.5 million, driven by a 149% increase in subscribers.

For the year ended January 31, total retail segment net sales increased 4%, with comparable retail segment net sales also increasing 4%. 

“We are pleased to report record fourth quarter sales driven by strength at the Anthropologie, Free People and Nuuly brands,” said Richard Hayne, chief executive officer. “We enter the spring selling season with an improved inventory position which bodes well for merchandise margin opportunity in fiscal 2024."

Net income for the three months was $31.5 million and earnings per diluted share were $0.34. For the full-year, net income was $159.7 million and earnings per diluted share were $1.70.