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Home News fashion

Urban Outfitters achieves record quarterly sales, but inflation and business costs dampen profits

Carmen Toraya by Carmen Toraya
junio 2, 2022
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Urban Outfitters achieves record quarterly sales, but inflation and business costs dampen profits
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Urban Outfitters announced Tuesday that first-quarter net sales rose 13%, thanks to double-digit comparable retail sales growth, although inflation and operating costs dented profits.

 

The Philadelphia-based company said net sales increased 13.4% to a record US$1050 million (€983.87 million) in the quarter ended April 30. Total retail segment net sales increased 12%, with retail segment comparable sales up 11%, partially offset by single-digit digital channel sales.

By brand, retail segment comparable sales increased 18 % at Anthropologie Group, 15 % at the Free People Group and 1 % at Urban Outfitters. Wholesale segment net sales increased 6%, driven by a 9% increase in Free People Group wholesale sales. Nuuly segment sales increased by US$15 million (14.06 million euros), driven by a significant increase in its subscriber base.

«We are pleased to report record first quarter sales, driven by an 11% increase in comparable sales in the retail segment,» said Richard Hayne, chief executive officer.

«Unfortunately, the impact of inflation on our cost of doing business more than offset the benefit of record revenues.»

Net income for the three months fell to $32 million (€29.98 million) and earnings per diluted share declined to $0.33 (€0.31), down from $53 million (€49.66 million) and earnings per diluted share of $0.54 (€0.51) in the year-ago quarter.

During the three months, the company opened a total of five new retail locations, including: two Free People Group stores (including one FP Movement store); two Urban Outfitters stores; and one Menus & Venues restaurant. The group closed three stores: one Free People Group store, one Urban Outfitters store and one Anthropologie Group store.

It also opened two Urban Outfitters franchise stores and one Anthropologie Group franchise store.

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