Urban Outfitters sees record Q3 sales and profits

Urban Outfitters Inc. has reported a net income of $89 million and record third quarter earnings per diluted share of $0.89 for the three months ending 31 October 2021. For the nine months also ending 31 October 2021, net income was $270 million.

Urban Outfitters Inc., the owners of global consumer brands including Anthropologie, Free People, Urban Outfitters and Nuuly Thrift, reported total company net sales for the three months period reached a record $1.13 billion. Net sales also increased 14.6%.

Comparable retail segment net sales increased 14%, driven by strong double-digit growth in digital channel sales, partially offset by mid-single-digit negative retail store sales primarily due to reduced store traffic. By brand, comparable retail segment net sales increased 55% at the Free People Group, 9% at the Anthropologie Group and 7% at Urban Outfitters.

Richard A. Hayne, Chief Executive Officer for Urban Outfitters Inc., commented: “I’m pleased to announce our teams produced record Q3 sales and earnings. We are excited that November ‘comp’ sales to date for all brands have accelerated from their Q3 rate”.

For the three months, gross profit rate increased by 202 basis points compared to the three months ended 31 October 2019. Gross profit increased by $69.6 million to $390.7 million from $321.1 million. The increase in gross profit rate was reportedly due to record low third quarter merchandise markdown rates in the retail segment and leverage in store occupancy expense primarily due to the increased penetration of the digital channel in Retail segment net sales.

During the reported nine month period, the company opened a total of 46 new retail locations including 23 Free People Group stores, 15 Urban Outfitters stores and 8 Anthropologie Group stores; and closed 9 retail locations.