Urbn has achieved record financial performance for the quarter ending 31 October.
- The company’s net income rose to $102.9m (£80.82m).
- Gross profit saw a year-on-year increase of 9.4% to $497.3m (£390.6m).
- Retail and wholesale sales contributed significantly, with mixed results across brands.
- CEO Richard A. Hayne anticipates continued strong demand for the holiday season.
Urbn, the owner of popular brands such as Urban Outfitters, Free People, and Anthropologie, reported an impressive financial outcome for the quarter ending 31 October. Net income surged to $102.9 million (£80.82 million), underlining a robust period of activity for the company.
The company’s gross profit increased by 9.4% year on year, reaching $497.3 million (£390.6 million). This performance was driven by both retail and wholesale operations, showcasing the strength of Urbn’s diverse sales channels.
Total net sales for the quarter rose by 6.3%, setting a new record at $1.36 billion (£1.06 billion). This overall growth, however, showed varied performance among the company’s brands. Anthropologie experienced a sales increase of 5.8%, and Free People’s sales went up by 5.3%, while Urban Outfitters experienced a decline of 8.9%.
In the wholesale segment, net sales grew significantly by 17.4%, primarily due to a 20.3% rise in Free People wholesale sales. This was attributed to increased sales to specialty customers and department stores, although there was a partial offset by a decrease in Urban Outfitters’ wholesale sales.
CEO Richard A. Hayne expressed satisfaction with the quarterly results, noting that sales and earnings exceeded expectations across all three business segments: retail, subscription, and wholesale. Hayne remains optimistic about future demand, particularly as the holiday season approaches, and believes that total comparable sales could mirror the third quarter’s strong results.
Urbn’s record-setting quarter reflects the company’s strategic acumen and favourable market conditions.
