US' Urban Outfitters' net sales climb 7% to $2.55 bn in H1 FY24

American firm Urban Outfitters, a leading lifestyle products company, has reported record net sales of $2.55 billion in the first half of fiscal 2024 (H1 FY24), marking a 7 per cent increase compared to the same period last year. The company’s impressive growth was driven by robust performances across its retail, Nuuly, and wholesale segments.

For the six months ended July 31, 2024, Urban Outfitters' total retail segment net sales increased by 4.4 per cent. Comparable retail segment net sales saw a 3.2 per cent growth, largely fuelled by mid-single-digit positive growth in digital channel sales and low single-digit growth in retail store sales. The company's net income for the period stood at $179.3 million, with earnings per diluted share of $1.89, the company said in a press release.

Among the company’s brands, Free People and Anthropologie performed particularly well. Free People saw an impressive 11.5 per cent increase in comparable retail segment net sales, while Anthropologie followed closely with an 8.4 per cent increase. However, the Urban Outfitters brand faced challenges, experiencing an 11.4 per cent decline in comparable retail segment net sales.

The company’s Nuuly segment, which includes the popular clothing rental service, demonstrated exceptional growth, with net sales increasing by 57.2 per cent. Additionally, the wholesale segment recorded a 9.2 per cent increase in net sales, thanks to an 11.9 per cent rise in Free People wholesale sales.

In the second quarter of fiscal 2024, covering the three months ended July 31, 2024, Urban Outfitters continued its upward trajectory. The company achieved total net sales of $1.35 billion, reflecting a 6.3 per cent increase year-over-year. The retail segment net sales grew by 3.1 per cent, with comparable retail segment net sales increasing by 2.0 per cent. Net income for Q2 FY24 was reported at $117.5 million, with earnings per diluted share of $1.24.

The Free People and Anthropologie brands continued their strong performance in Q2 FY24, with comparable retail segment net sales increasing by 7.1 per cent and 6.7 per cent, respectively. Despite these gains, the Urban Outfitters brand again saw a decline, with a 9.3 per cent decrease in comparable retail segment net sales.

Nuuly’s growth persisted into Q2 FY24, with segment net sales soaring by 62.6 per cent. The increase was largely attributed to a 55 per cent rise in average active subscribers compared to the previous year’s quarter. The wholesale segment also performed well, with a 15.1 per cent increase in net sales, driven by a 17.5 per cent rise in Free People wholesale sales, which benefited from increased sales to department stores and specialty customers. This was somewhat offset by a decline in Urban Outfitters’ wholesale sales.

“We are pleased to report record second quarter sales fuelled by strength across all three segments—retail, Nuuly and wholesale,” said Richard A Hayne, chief executive officer. “Equally impressive, four of our five brands delivered record operating profits during the second quarter.”

Fibre2Fashion News Desk (DP)