Urban Outfitters beats Q2 estimates, shares rise
PHILADELPHIA – Urban Outfitters, Inc. (NASDAQ:URBN) reported better-than-expected second quarter results, sending shares up 1.4% in after-hours trading on Wednesday.
The lifestyle products retailer posted earnings per share of $1.24 for the quarter ended July 31, 2024, surpassing analyst estimates of $1.00. Revenue rose 6.3% YoY to a record $1.35 billion, slightly above the consensus forecast of $1.34 billion.
Total Retail segment net sales increased 3.1%, with comparable Retail segment net sales rising 2.0%. The Nuuly segment saw strong growth, with net sales surging 62.6% driven by a 55% increase in average active subscribers.
“We are pleased to report record second quarter sales fueled by strength across all three segments – Retail, Nuuly and Wholesale,” said CEO Richard A. Hayne. “Equally impressive, four of our five brands delivered record operating profits during the second quarter.”
By brand, Anthropologie net sales grew 7.4% to $569.1 million, while Free People sales increased 10.2% to $365.1 million. However, Urban Outfitters brand sales declined 8.6% to $316.7 million.
The company’s gross profit rate improved by 68 basis points to 36.5%, primarily due to higher initial merchandise markups across all segments.
For the six months ended July 31, Urban Outfitters reported net income of $179.3 million and earnings per diluted share of $1.89.
The company opened 19 new retail locations and closed 9 during the first half of the fiscal year. As of July 31, Urban Outfitters operated 723 stores across its various brands.
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