Urban Outfitters reports record sales thanks to fashion rental business

Urban Outfitters, which operates a portfolio including Anthropologie, Free People, Urban Outfitters and Nuuly brands, has today announced it achieved an impressive net income of £89.6 million ($117.5 million) for the second quarter ending 31 July 2024.

During the second quarter, net sales increased 6.3% to a record $1.35 billion. The increase in sales was driven by low single-digit positive growth in both digital channel and retail store sales. At the end of the quarter, earnings per diluted share sat at £0.95 ($1.24).

In terms of brands, retail sales increased by 7.1% at Free People, 6.7% at Anthropologie and 62.6% at Nuuly. However, it decreased by 9.3% at Urban Outfitters. Wholesale net sales increased 15.1%, driven by a 17.5% increase in Free People orders.

Richard A. Hayne, Chief Executive Officer at Urban Outfitters, said: "We are pleased to report record second-quarter sales fuelled by strength across all three segments – Retail, Nuuly and Wholesale.

"Equally impressive, four of our five brands delivered record operating profits during the second quarter."

For the six months ending 31 July, net income was £136.7 million ($179.3 million) and earnings per diluted share were £1.44 ($1.89). Total net sales increased 7% to a record £1.95 billion ($2.55 billion).

Breaking it down by brands, net sales increased by 11.5% at Free People, 8.4% at Anthropologie and 57.2% at Nuuly. However, sales decreased by 11.4% at Urban Outfitters. Wholesale segment net sales increased 9.2% driven by Free people.

During H1, the company opened 19 new retail locations including 9 Free People, 5 Urban Outfitters and 5 Anthropologie stores. It closed 9 retail locations including 4 Urban Outfitters, 3 Anthropologie and 2 Free People stores.