Urban Outfitters Inc achieved remarkable financial milestones for the fiscal year ending January 31, 2024, as the company’s net sales increased by 7.5 per cent to $5.15 billion. This surge in revenue was predominantly fueled by substantial growth in comparable net sales within its Free People and Anthropologie brands, both demonstrating notable increases in performance.
The retail segment, a pivotal component of Urban Outfitters' operations, exhibited a commendable 6 per cent rise in net sales, buoyed by a 5 per cent increase in comparable net sales. This growth was predominantly attributed to the stellar performance of digital channel sales and the commendable showing of retail stores across various locations.
Of particular note were the significant spikes in comparable retail segment sales, which soared by 21.4 per cent at Free People and 12.3 per cent at Anthropologie.
Conversely, Urban Outfitters experienced a slight dip, with comparable sales decreasing by 13.8 per cent. The wholesale segment witnessed a decline of 4.6 per cent in net sales, primarily driven by a 4.8 per cent decrease in Free People wholesale sales, attributed to declines in sales to department stores and closeout account partners.
The Nuuly segment emerged as a standout performer, with net sales surging by $106.2 million, driven by an impressive 82 per cent increase in average active subscribers compared to the preceding year.
For the fourth quarter, total company net sales also surged to a record $1.49 billion, marking a notable 7.3 per cent increase. Adjusted net sales reached $1.5 billion, indicating an 8 per cent uptick compared to the corresponding period last year. The retail segment continued its upward trajectory, witnessing a 6.2 per cent increase in net sales, supported by a 4.9 per cent rise in comparable net sales.
Despite Urban Outfitters experiencing a modest decline in comparable net sales during the fourth quarter, Free People, Anthropologie, FP Movement, and Nuuly brands exhibited remarkable strength, contributing significantly to overall performance.
Richard A. Hayne, the CEO of Urban Outfitters, expressed satisfaction with the record fourth-quarter sales, citing the strength of various brands within the portfolio. He emphasised positive customer response to early spring offerings, projecting continued sales growth in the first quarter and underscoring the company's optimistic outlook for future performance.
