Urban Outfitters registers strong growth in Q3 sales and earnings

Urban Outfitters announced third quarter net income of 102.9 million dollars and earnings per diluted share of 1.10 dollars. For the nine months, net income was 282.2 million dollars and earnings per diluted share were 2.99 dollars.

The company’s net sales for the quarter increased 6.3 percent to 1.36 billion dollars.

“We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – retail, subscription and wholesale,” said Richard Hayne, the company’s chief executive officer.

“We're optimistic about the outlook for holiday demand and believe total comparable sales could be similar to our third quarter results,” added Hayne.

Urban Outfitters posts strong Q3 results

Retail segment net sales increased 3.2 percent for the third quarter with comparable retail segment net sales increasing 1.5 percent driven by low single-digit positive growth in both digital channel sales and retail store sales.

Comparable retail segment net sales increased 5.8 percent at Anthropologie and 5.3 percent at Free People and decreased 8.9 percent at Urban Outfitters. Nuuly segment net sales increased by 48.4 percent driven by a 51 percent increase in average active subscribers in the current quarter.

Wholesale segment net sales increased 17.4 percent driven by a 20.3 percent increase in Free People wholesale sales.

Nine month sales increase by 6.7 percent at Urban Outfitters

For the nine months, net sales increased 6.7 percent to 3.91 billion dollars. Retail segment net sales increased 4 percent, with comparable retail segment net sales increasing 2.6 percent driven by mid single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales.

Comparable retail segment net sales increased 9.3 percent at Free People and 7.5 percent at Anthropologie and decreased 10.6 percent at Urban Outfitters. Nuuly segment net sales increased by 53.9 percent driven by a 50 percent increase in average active subscribers versus the prior year period.

Wholesale segment net sales increased 12.3 percent driven by a 15.1 percent increase in Free People wholesale sales.

During the nine months, the company opened a total of 36 new retail locations including: 20 Free People stores with 12 FP Movement stores, nine Anthropologie stores and seven Urban Outfitters stores; and closed 11 retail locations including: five Urban Outfitters stores, four Anthropologie stores and two Free People stores.