Urban Outfitters reported third quarter net income of 83 million dollars and earnings per diluted share of 88 cents. For the nine month period, net income was 239.9 million dollars and earnings per diluted share were 2.55 dollars.
Total company net sales for the quarter increased 9 percent to 1.28 billion dollars, while for the nine months, net sales increased 7.5 percent to 3.67 billion dollars.
“We are proud to report record third quarter sales that helped drive a 120 percent increase in EPS,” said Richard A. Hayne, the company’s chief executive officer.
Highlights of Urban Outfitters’ Q3 and nine month results
Urban Outfitters third quarter retail segment net sales increased 7.3 percent and comparable retail segment net sales increased 5.6 percent driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales.
Total retail segment net sales for nine months increased 5.9 percent, with comparable retail segment net sales increasing 5 percent driven by mid single-digit positive growth in both digital channel sales and retail store sales.
The company said, comparable retail segment net sales increased 22.5 percent at Free People and 13.2 percent at Anthropologie and decreased 14.2 percent at Urban Outfitters.
For the nine month period, comparable retail segment net sales increased 22.5 percent at Free People and 12.4 percent at Anthropologie and decreased 13.9 percent at Urban Outfitters.
Urban Outfitters wholesale sales witness a decrease
Third quarter Wholesale segment net sales decreased 3.6 percent driven by a 3.5 percent decrease in Free People wholesale sales due to a decrease in sales to department stores and close out account partners. Nuuly segment net sales increased by 30.2 million dollars driven by a 68 percent increase in the subscribers versus the end of the prior year’s comparable quarter.
Year-to-date wholesale segment net sales decreased 6.7 percent driven by an 8.1 percent decrease in Free People wholesale sales, while Urban Outfitters wholesale sales increased by 1.5 million dollars. Nuuly segment net sales increased by 86.9 million dollars primarily driven by a 68 percent increase in the company’s subscribers.
During the nine months, the company opened 21 new retail locations including 10 Free People stores (including six FP Movement stores), five Urban Outfitters stores, five Anthropologie stores and one Menus & Venues restaurant; and closed 10 retail locations including four Urban Outfitters stores, four Anthropologie stores, one Free People store and one Menus & Venues restaurant. The company added that one Urban Outfitters franchisee-owned store was opened during the period under review.