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Urban Outfitters posts increase in Q2 sales and earnings

By Prachi Singh

25 Aug 2021

Business

Image: Free People, Facebook

Urban Outfitters, Inc., which operates a portfolio of global consumer brands comprised of the Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands, announced net income of 127 million dollars and earnings per diluted share of 1.28 dollars for the second quarter and net income of 181 million dollars and earnings per diluted share of 1.82 dollars fot the six month period.

The company said in a statement that total company net sales for the three months were 1.16 billion dollars, up 20.3 percent, while comparable retail segment net sales increased 22 percent, driven by strong double-digit growth in digital channel sales, partially offset by low single-digit negative retail store sales due to reduced store traffic.

“We’re pleased to report record second quarter sales and earnings driven by extraordinary performance at all three brands,” said Richard A. Hayne, the company’s chief executive officer.

Review of Urban Outfitters’ Q2 and H1 performance

By brand, comparable retail segment net sales increased 53 percent at the Free People Group, 20 percent at Urban Outfitters and 14 percent at the Anthropologie Group. Total retail segment net sales increased 24 percent, while wholesale segment net sales decreased 30 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

For the six months, total company net sales increased 14.1 percent and comparable retail segment net sales increased 17 percent. Wholesale segment net sales decreased 27 percent.

For the three months, the gross profit rate increased by 478 basis points, while gross profit increased by 119.4 million dollars to 435.3 million dollars. For the six months ended July 31, 2021, the gross profit rate increased by 327 basis points.

During the six months, the company opened 28 new retail locations including 15 Free People Group stores including seven FP Movement stores, nine Urban Outfitters stores and four Anthropologie Group stores.

The company closed six retail locations including two Free People Group stores, two Anthropologie Group stores, one Urban Outfitters store and one Menus & Venues restaurant.

One Urban Outfitters franchisee-owned store and one Anthropologie Group franchisee-owned store were opened during the first half period.