Urban Outfitters, Inc. (URBN) delivered impressive second-quarter financial results, exceeding analyst expectations and showcasing strong growth across its business segments. The company reported earnings per share of $1.24, surpassing the consensus estimate of $1.01 by a significant margin of 22.77%. This positive performance was further bolstered by record quarterly sales of $1.35 billion, exceeding analyst projections and reflecting a 6.13% increase compared to the same period last year.
The Retail segment experienced a 3.1% increase in net sales, driven by a 2% rise in comparable Retail segment net sales. This growth was attributed to positive performance in both digital channels and retail store sales. Free People and Anthropologie demonstrated strong growth in comparable Retail segment sales, registering increases of 7.1% and 6.7%, respectively. However, Urban Outfitters saw a decline of 9.3% in comparable Retail segment sales.
The Nuuly segment experienced substantial growth, with net sales increasing by 62.6%. This surge was primarily driven by a 55% increase in average active subscribers compared to the previous year’s quarter.
The Wholesale segment also recorded a positive performance, with net sales increasing by 15.1%. This growth was primarily attributed to a 17.5% increase in Free People wholesale sales, driven by enhanced sales to department stores and specialty customers. This positive trend was partially offset by a decrease in Urban Outfitters wholesale sales.
Richard A. Hayne, CEO of Urban Outfitters, expressed satisfaction with the company’s performance, stating, “We are pleased to report record second-quarter sales fueled by strength across all three segments — Retail, Nuuly and Wholesale.” He further highlighted the positive performance of four out of the company’s five brands, noting they achieved record operating profits during the second quarter.
Despite the strong financial results, Urban Outfitters’ stock experienced a 4.27% decline in after-hours trading, closing at $39.71. This downturn followed a 3.08% gain during regular trading on Wednesday.
