Urban Outfitters records 14.2% increase in full year sales
URBN, owners of Urban Outfitters, Anthropologie and Free People, has announced a 14.2% increase in net sales for the year ending 31 January 2022, rising to £3.3 billion ($4.5 billion).
Retail net sales increased 16%, driven by strong double-digit growth in digital channel sales, which partially offset low double-digit negative retail store sales due to reduced store traffic. Wholesale net sales decreased 23%, primarily from reducing the Free People Group’s sales to promotional wholesale customers.
For the three months ending 31 January 2022, the company posted £981 million ($1.33 billion) in total company net sales, up 13.9% compared to the same period in 2020.
Retail net sales in the three months increased 14%, driven by strong double-digit growth in digital channel sales, while total retail segment net sales increased 15%. Wholesale net sales decreased 22% primarily from reducing the Free People Group’s sales to promotional wholesale customers.
By brand, comparable Retail segment net sales increased 49% at the Free People Group, 14% at the Anthropologie Group and 3% at Urban Outfitters.
URBN believes that the company's fourth quarter gross margin could deleverage more than planned, primarily due to higher than anticipated inbound transportation costs.
Urban Outfitters also confirmed the appointment of Francis Pierrel as President of Urban Outfitters, North America. Pierrel previously served as CEO of Club Monaco and President of Stores and Ecommerce at Ralph Lauren. He will report directly to Sheila Harrington, Global CEO of Urban Outfitters and the Free People Group.
Commenting on the appointment, Richard A. Hayne, Chief Executive Officer of URBN, said: "I am pleased to welcome Francis to our Company and the Urban Outfitters brand. He is a seasoned omni-channel retail executive with deep experience in managing iconic brands across all channels - ecommerce, stores, and wholesale. We believe his strong leadership will greatly benefit the Urban Outfitters brand."
