Urban Outfitters revenues rise as it remains 'confident' for Q4
Urban Outfitters, Inc. has achieved a 9% increase in net revenue to £1 billion ($1.28 billion) for the third quarter ending 31 October 2023.
Total retail segment net sales lifted 7.3%, with comparable retail segment net sales up 5.6%, driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales.
The company said comparable retail segment net sales increased 22.5% at Free People and 13.2% at Anthropologie, but dropped 14.2% at Urban Outfitters.
For the nine month period, total net sales increased 7.5% to a record £2.9 billion ($3.67 billion). Meanwhile, total retail segment net sales grew 5.9% and comparable retail segment net sales were up 5%.
During this time, the company opened 21 new retail locations. This includes opening ten and closing one Free People stores, as well as opening five and closing four Urban Outfitters and Anthropologie stores each.
Gross profit for the nine months increased 401 basis points, primarily due to higher initial merchandise markups and lower merchandise markdowns in the retail segment at Anthropologie, Free People and Urban Outfitters.
Net income totalled £66 million ($83 million) in the three months and (£191.4 million $239.9 million) in the nine month period.
Richard Hayne, Urban Outfitters, Inc. CEO, said: “We are proud to report record third quarter sales that helped drive a 120% increase in EPS. As we enter the holiday season, consumers continue to react positively to our assortments and marketing campaigns at four out of five of our brands. This leaves us confident we can continue to drive revenue and earnings growth in the fourth quarter."
