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Urban Outfitters Inc reveals 'record' Q2 sales

Sophie Smith
24 August 2022

Urban Outfitters, Inc. has released its financial results for the second quarter and six months ending 31 July 2022, revealing a 2% increase in Q2 net sales to a "record" $1.18 billion.

The company reported revenues for the six months ending 31 July 2022 of $2.2 billion, an increase of 7.2% compared to the prior-year period.

For Q2, Urban Outfitters Inc shared the following brand results:

Richard Hayne, CEO of Urban Outfitters Inc, said: “We are pleased to announce record Q2 sales fuelled by strong ‘comps’ at the Anthropologie and Free People brands."

For the three months ended 31 July 2022, total retail net sales increased 1% to $1 billion. This was driven by low single-digit positive digital channel sales. Wholesale net sales increased 1%, driven by a 4% increase in Free People Group wholesale sales, partially offset by a decline in Urban Outfitters wholesale sales.

For the six months ended 31 July 2022, total retail net sales increased 6% to $2 billion, driven by double-digit growth in retail store sales due to increased store traffic. Wholesale net sales increased to $125 million.

Q2 gross profit rate decreased by 595 basis points compared to the prior year. This decrease was primarily due to higher markdowns as compared to record low markdown rates in the comparable prior year quarter.

H1 gross profit rate decreased by 407 basis points compared to the prior year. This decrease was also "primarily due to higher markdowns and lower initial merchandise markups" driven largely by higher inbound transportation expenses.

The company recorded Q2 net income of $59 million and earnings per diluted share of $0.64 for the three months. For the six months, net income was $91 million and earnings per diluted share were $0.96.

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