Urban Outfitters posts 13.4% increase in Q1 sales
URBN, owners of Urban Outfitters, Anthropologie and Free People, has announced a 13.4% increase in total company net sales for the three months ending 30 April 2022, reaching £838 million ($1.05 billion).
Retail net sales increased 12%, with comparable retail segment net sales increasing 11%, due to increased store traffic, partially offset by mid-single-digit negative digital channel sales.
However, the company's net income came in at £24 million compared to £42 million in the same period last year, driven by increased inventory costs, supply chain constraints and lower sales.
By brand, comparable Retail segment net sales increased 18% at the Anthropologie Group, 15% at the Free People Group and 1% at Urban Outfitters.
During the three months, the company opened five new retail locations, including two Free People Group stores, two Urban Outfitters stores and one Menus & Venues restaurant and closed three retail locations.
Commenting on the results, Richard A. Hayne, Chief Executive Officer of URBN said: "We are pleased to announce record Q1 sales driven by an 11% Retail segment ‘comp’. Unfortunately, the impact of inflation on our costs of doing business more than offset the benefit of record revenues,” finished Mr. Hayne."