US lifestyle brand Urban Outfitters' Q3 FY2022 sales spike to $1.13 bn

For the nine months ended October 31, 2021, net income was $270 million and record first nine-month period earnings per diluted share were $2.71.

The income from operations in Q3 FY 2022 increased to $115.9 million from $98.5 million over the same period last year, while the net income increased by 7.9 per cent to $88.9 million in Q3 FY22 from $76.7 million in Q3 FY21, the company said in a media release.

The comparable retail segment net sales for the three months ended October 31, 2021 increased by 14 per cent compared to the three months ended October 31, 2019, driven by the strong double-digit growth in digital channel sales, partially offset by mid-single-digit negative retail store sales primarily due to reduced store traffic.

Based on the individual brand performance, the comparable retail segment net sales increased 55 per cent at the Free People Group, 9 per cent at the Anthropologie Group and 7 per cent at Urban Outfitters which reflected in the total retail segment net sales increase of 16 per cent compared with the corresponding quarter of fiscal 2020. On the other hand, wholesale segment net sales moved downward by 15 per cent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

All three brands achieved record low third quarter merchandise markdown rates. This was partially offset by an increase in delivery and logistics expenses and lower initial merchandise markups. The delivery expense deleveraged due to increases in carrier costs per package and increased penetration of the digital channel. The logistics expense deleveraged due to increased wages at our distribution and fulfillment centers to attract and retain appropriate levels of employees and the increased penetration of the digital channel. The lower initial merchandise markups are primarily due to higher inbound transportation expenses.

As of October 31, 2021, the inventory level of the company stood at $627 million with $236 million of cash and cash equivalents.

Fibre2Fashion News Desk (DD)