Urban Outfitters sales growth driven by digital
American fashion retailer Urban Outfitters, Inc. reported a year-over-year increase of 16.7% in its third-quarter net sales on Monday and a 14.6% rise compared to the same period two years ago, as online growth offset in-store declines.
In the third quarter ended October 31, 2021, the company achieved record net sales of $1.13 billion, compared to $969.6 million in the prior-year period and $987.5 million two years ago, before the impact of the Covid-19 pandemic.
The retailer, which sees the results from its last pre-Covid-19 third quarter as a better basis of comparison, revealed that comparable retail segment sales have risen 14% since then, reflecting strong double-digit growth in digital channel sales and a mid-single-digit decrease in in-store sales
Broken down by brand, the group’s namesake Urban Outfitters label has seen a 7% rise in its quarterly retail segment sales since the same period two years ago. Growth was 9% at the Anthropologie Group and an impressive 55% at the company’s Free People Group. Wholesale segment net sales, on the other hand, declined 15% over the same period.
Full-company net income for the quarter was $88.9 million, or $0.89 per diluted share, up from $76.7 million, or $0.78 per diluted share, in last year’s third quarter. In the same period two years ago, net income was $55.7 million, or $0.56 per diluted share.
“I’m pleased to announce our teams produced record Q3 sales and earnings,” said Urban Outfitters CEO Richard A. Hayne in a release. “We are excited that November ‘comp’ sales to date for all brands have accelerated from their Q3 rate,” he added, giving a taste of things to come in the fourth quarter.
Year to date, Urban Outffiters reported net sales of $3.22 billion, up 36.2% from $2.36 billion in the same nine-month period in the previous year and 14.3% from $2.8 billion two years ago. Net income for the period was $270 million, or $2.71 per diluted share.
Urban Outfitters currently runs more than 670 stores in the U.S., Canada and Europe, under the names Urban Outfitters, Anthropologie and Free People. The company also runs nine Menus and Venues restaurants.
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