Net sales of US firm Urban Outfitters ascend 9% in Q3 FY23

22 Nov '23

3 min read

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American company Urban Outfitters reported a 9 per cent increase in Q3 FY23 net sales to $1.28 billion, driven by growth in its retail segment.
Notably, Free People and Anthropologie saw significant sales increases, while Urban Outfitters' sales declined.
The Nuuly segment also grew substantially, buoyed by a 68 per cent rise in subscribers.

Urban Outfitters, a leading US-based fashion retailer, has reported a net sales increase of 9 per cent year-on-year (YoY) to reach an all-time high of $1.28 billion for the third quarter of fiscal 2023 (Q3 FY23), ending October 31, 2023. This growth is attributed primarily to the retail segment, which saw a 7.3 per cent increase in net sales, with comparable retail segment net sales climbing 5.6 per cent.

Notably, comparable retail segment net sales showed a significant increase of 22.5 per cent at Free People and 13.2 per cent at Anthropologie. However, Urban Outfitters experienced a 14.2 per cent decrease in comparable Retail segment net sales, the company said in a press release.

The wholesale segment witnessed a 3.6 per cent decrease, largely due to a 3.5 per cent drop in Free People wholesale sales, which was affected by reduced sales to department stores and close-out account partners.

The company's Nuuly segment, which focuses on clothing rental subscriptions, reported a substantial net sales increase of $30.2 million. This was primarily due to a 68 per cent increase in subscribers compared to the end of the same quarter in the previous year.

Urban Outfitters reported a net income of $83.0 million and earnings per diluted share of $0.88 for the three-month period ended October 31, 2023.

Looking at the first nine months of fiscal 2023, the total company net sales increased by 7.5 per cent to a record $3.67 billion. The total retail segment net sales rose by 5.9 per cent, with comparable Retail segment net sales up by 5.0 per cent.

Comparable Retail segment net sales in the first nine months rose by 22.5 per cent at Free People and 12.4 per cent at Anthropologie, while there was a 13.9 per cent decrease at Urban Outfitters. The wholesale segment experienced a 6.7 per cent decrease, largely due to an 8.1 per cent drop in Free People wholesale sales. Conversely, Urban Outfitters wholesale sales increased by $1.5 million. Nuuly segment net sales surged by $86.9 million, driven by a 68 per cent increase in subscribers compared to the end of the same period last year.

“We are proud to report record third quarter sales that helped drive a 120 per cent increase in EPS,” said Richard A Hayne, chief executive officer. “As we enter the holiday season the consumer continues to react positively to our assortments and marketing campaigns at four out of five of our brands which leaves us confident we can continue to drive revenue and earnings growth in the fourth quarter.”

Fibre2Fashion News Desk (DP)

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