Urban Outfitters sees double-digit holiday sales growth on digital

By

Benjamin Fitzgerald

Published
Jan 12, 2022

Urban Outfitters Inc. reported on Tuesday double-digit revenue growth for the 2021 holiday season, compared to the same two-month period in 2019, driven by strong growth in the U.S. group's digital channel, offsetting negative retail store sales, thanks to reduced in-store traffic.

In its opening earnings release statement, the Philadelphia-based Urban Outfitters Inc said it viewed the comparison of fiscal 2022 results to fiscal 2020 as a more "meaningful measurement of the company’s business performance," and therefore, reported accordingly.

"Due to the material impact of Covid-19 on our business operations in fiscal 2021, including mandated store closures, this release includes a comparison of fiscal 2022 results to fiscal 2020," explained Urban Outfitters, which operates  Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands. 

Urban Outfitters said net sales for the two months ended December 31, 2021, increased 14.6% compared to the two months ended December 31, 2019. Total sales were driven by its comparable retail segment, where sales increased 14%, held up 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% at the Free People Group, 15% at the Anthropologie Group and 3% at Urban Outfitters. Total retail segment sales increased 15%, while wholesale segment sales decreased 18% primarily from reducing the Free People Group’s sales to promotional wholesale customers, the company said in its earning release.

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For the eleven months ended December 31, total company sales increased 14.4%, compared to to the same period in 2019. Comparable retail segment sales increased 16%, driven by strong double-digit growth in digital channel sales, partially offset by low double-digit negative retail store sales due to reduced store traffic. 

Like the holiday season, wholesale segment sales decreased by double digits to 22% for the eleven months, primarily from reducing the Free People Group’s sales to promotional wholesale customers.

The fashion apparel and restaurant chain company opened a total of 56 new retail locations in 2021 including 29 Free People Group stores, 17 Urban Outfitters stores, 9 Anthropologie Group stores and 1 Menus & Venues restaurant.