US' Urban Outfitters' income jumps 19.3% to $102.9 mn in Q3 2024

The company’s total retail segment net sales increased 3.2 per cent YoY, primarily driven by low single-digit growth in both digital channel sales and retail store sales. Its gross profit improved significantly to $497.3 million in Q3 2024, from $454.4 million in Q3 2023 due to higher initial merchandise markups for all segments primarily driven by Company cross-functional initiatives., Urban Outfitters said in a press release.

Selling, general, and administrative (SG&A) expenses for the company increased to $368 million in Q3 2024 from $345 million in Q3 2023. The income from operations also increased to $128 million from $108 million in Q3 last year.

The other income, net, saw a substantial increase to reach $7.1 million this quarter, from $7 million in Q3 2023. The income before income taxes rose to $135 million in Q3 2024 from $109 million a year prior. Basic earnings per share (EPS) of the company was $1.12, up from $0.89 in Q3 2023. Diluted EPS increased to $1.10 from $0.88 in Q3 last year.

Brand-wise, comparable retail segment net sales increased 5.8 per cent YoY at Anthropologie, 5.3 per cent at Free People and decreased 8.9 per cent at Urban Outfitters.

Segment-wise, Nuuly’s net sales increased by 48.4 per cent primarily driven by a 51 per cent increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 17.4 per cent driven by a 20.3 per cent increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales.

“We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – Retail, Subscription and Wholesale,” said Richard A. Hayne, chief executive officer (CEO). “Additionally, we are optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results.”

Nine-month (9M) financials

For the 9M period, net income of the company was $282.2 million and earnings per diluted share was $2.99. Total net sales increased 6.7 per cent YoY to a record $3.91 billion. Total retail segment net sales increased 4.0 per cent YoY.

Brand-wise, comparable retail segment net sales increased 9.3 per cent YoY at Free People and 7.5 per cent at Anthropologie and decreased 10.6 per cent at Urban Outfitters.

Segment-wise, Nuuly’s net sales increased 53.9 per cent YoY primarily driven by a 50 per cent increase in average active subscribers in the current period versus the prior year period. Wholesale segment net sales increased 12.3 per cent driven by a 15.1 per cent increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales.

The gross profit of the company reached $1.4 billion for the 9M period from $1.3 billion in 2023. SG&A expenses were $1.05 billion from $968 million for 9M in 2023. The income from operations reached $348 million from $312 million in 9M 2023. Other income, net was $20 million in 9M 2024, from $5.1 million in the previous year. The basic EPS was at $3.04 and diluted at $2.99.

Fibre2Fashion News Desk (SG)