Urban Outfitters, Inc. (URBN) has reported 14.6 percent increase in total company net sales for the two months ended December 31, 2021, compared to the two months ended December 31, 2019. URBN now believes that the total company fourth quarter gross margin could deleverage due to higher than anticipated inbound transportation costs.
The company said in a statement that comparable retail segment net sales increased 14 percent, driven by strong double-digit growth in digital channel sales, partially offset by high single-digit negative retail store sales primarily due to reduced store traffic.
By brand, comparable Retail segment net sales increased 47 percent at the Free People Group, 15 percent at the Anthropologie Group and 3 percent at Urban Outfitters. Total Retail segment net sales increased 15 percent, while wholesale segment net sales decreased 18 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.
For the eleven months ended December 31, 2021, total company net sales increased 14.4 percent compared to the eleven months ended December 31, 2019. Comparable retail segment net sales increased 16 percent, while wholesale segment net sales decreased 22 percent.
During the eleven months, the company opened a total of 56 new retail locations including: 29 Free People Group stores (including 18 FP Movement stores), 17 Urban Outfitters stores, nine Anthropologie Group stores and one Menus & Venues restaurant; and closed 10 retail locations including: four Anthropologie Group stores, two Free People Group stores, two Urban Outfitters stores and two Menus & Venues restaurants. During the period under review, one Urban Outfitters franchisee-owned store and one Anthropologie Group franchisee-owned store were opened.