Urban Outfitters holiday sales increase by 10 percent

Urban Outfitters net sales for the two and eleven months increased by 10 percent and 7 percent, respectively.

After the company reported positive set of results, Jefferies analyst Corey Tarlowe increased the company's share price target, from 36 dollars to 40 dollars while maintaining an Underperform rating on the stock. According to a Investing.com report, while Urban Outfitters brand declined by 4 percent, Jefferies sees the positive performance of other brands under the company's portfolio as strong contributors to its financial health.

Urban Outfitters posts strong holiday sales

The company’s retail segment net sales increased 7 percent, with comparable retail segment net sales increasing 6 percent driven by high single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales.

The company said in a release that comparable retail segment over the holiday period net sales increased 10 percent at Anthropologie and 9 percent at Free People and decreased 4 percent at Urban Outfitters.

FP Movement brand retail segment comparable net sales increased 23 percent and Free People brand retail segment comparable net sales increased 6 percent.

Nuuly segment net sales increased 55 percent primarily driven by a 53 percent increase in average active subscribers in the current period. Wholesale segment net sales increased 29 percent driven by an increase in Free People wholesale sales.

Urban Outfitters’ year-to-date performance review

For the eleven months, retail segment net sales increased 5 percent, with comparable retail segment net sales increasing 3 percent. The increase in retail segment comparable net sales was driven by mid single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales.

The company added that Nuuly segment net sales increased 54 percent primarily driven by a 51 percent increase in average active subscribers in the period. Wholesale segment net sales increased 15 percent driven by an increase in Free People wholesale sales.

During the eleven months, the Company opened a total of 45 new retail locations including 11 Free People stores and 15 FP Movement stores, 12 Anthropologie stores and 7 Urban Outfitters stores.

The company closed 12 retail locations including six Urban Outfitters stores, four Anthropologie stores and two Free People stores.