Urban Outfitters sees “better-than-expected” financial results

Urban Outfitters Inc, the owners of Urban Outfitters, Anthropologie, and Free People, has reported better-than-expected results for the first quarter of fiscal 2024.

Defying Wall Street analysts' prediction, the company reported earnings per share of 56 cents, exceeding the predicted 35 cents. What's more, its revenue reached £889 million ($1.11 billion), beating the anticipated £881 million ($1.09 billion).

The company's net income stood at £42.73 million ($52.82 million), or 56 cents per share.

While Urban Outfitters saw a decline in sales for its namesake brand compared to the previous year, the Free People and Anthropologie brands achieved double-digit sales growth.

The company reported individual brand’s net sales as follows:

• Urban Outfitters net sales were down by 13.7% year-on-year to £249.7 million ($308.7 million)
• Anthropologie sales were up by 12.8% year-on-year to £383.1 million ($473.6 million)
• Free People sales were up by 11.4% to £221.4 million ($273.7 million)

Nuuly, the subscription-based rental service for women’s clothes, contributed £41.6 million ($51.5 million) to net sales, reflecting an increase from £18.4 million ($22.8 million) the year prior.

In terms of segments, retail rose by 4%, meanwhile wholesale dipped by 11%.

Richard A. Hayne, CEO of Urban Outfitters, commented: "We are pleased to report record first quarter sales and earnings per share driven by a 5 percent increase in comparable retail segment sales, strong growth in Nuuly Rent and a significant improvement in gross margins."