Urban Outfitters posts Q2 sales and profit growth

Urban Outfitters' net income increased to 117.5 million dollars and earnings per diluted share to 1.24 dollars for the second quarter.

Net sales for the quarter increased 6.3 percent to 1.35 billion dollars with retail segment net sales increase of 3.1 percent and comparable retail segment net sales increasing 2 percent.

The company’s net income for the first six month period was 179.3 million dollars and earnings per diluted share were 1.89 dollars.

First half net sales increased 7 percent to 2.55 billion dollars with total retail segment net sales increasing 4.4 percent and comparable retail segment net sales increasing 3.2 percent.

“We are pleased to report record second quarter sales fueled by strength across all three segments – retail, Nuuly and wholesale. “Equally impressive, four of our five brands delivered record operating profits during the second quarter,” said Richard A. Hayne, the company’s chief executive officer.

Highlights of Urban Outfitters’ Q2 and H1 results

The company’s comparable retail segment net sales increased 7.1 percent at Free People and 6.7 percent at Anthropologie and decreased 9.3 percent at Urban Outfitters. Nuuly segment net sales increased by 62.6 percent driven by a 55 percent increase in average active subscribers.

Wholesale segment net sales increased 15.1 percent driven by a 17.5 percent increase in Free People wholesale sales, partially offset by a decrease in Urban Outfitters wholesale sales.

For the six months, comparable retail segment net sales increased 11.5 percent at Free People and 8.4 percent at Anthropologie and decreased 11.4 percent at Urban Outfitters. Nuuly segment net sales increased by 57.2 percent driven by a 50 percent increase in average active subscribers. Wholesale net sales increased 9.2 percent driven by an 11.9 percent increase in Free People wholesale, partially offset by a decrease in Urban Outfitters wholesale sales.

On June 4, 2019, the company’s board authorised the repurchase of 20 million common shares under a share repurchase program, while during the six months, the company repurchased and subsequently retired 1.2 million shares for approximately 52 million dollars.

During the first half period, the company opened 19 new retail locations including nine Free People stores, five Urban Outfitters stores and five Anthropologie stores; and closed nine retail locations including four Urban Outfitters stores, three Anthropologie stores and two Free People stores.