By brand, comparable retail segment net sales increased 49 per cent at the Free People Group, 14 per cent at the Anthropologie Group and 3 per cent at Urban Outfitters. Total retail segment net sales increased 15 per cent. Wholesale segment net sales decreased 22 per cent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

For the year ended January 31, 2022, total company net sales increased 14.2 per cent compared to the year ended January 31, 2020. Comparable retail segment net sales increased 16 per cent, driven by strong double-digit growth in digital channel sales, partially offset by low double-digit negative retail store sales due to reduced store traffic. Wholesale segment net sales decreased 23 per cent primarily from reducing the Free People Group’s sales to promotional wholesale customers, the company said in a press release.

For the three months ended January 31, 2022, the gross profit rate decreased by 97 basis points and the adjusted gross profit rate decreased by 222 basis points compared to the three months ended January 31, 2020. Gross profit dollars increased by $33.5 million to $367.3 million from $333.8 million in the three months ended January 31, 2020. Adjusted gross profit dollars increased by $18.9 million from $348.4 million in the three months ended January 31, 2020. The decrease in adjusted gross profit rate was primarily due to lower initial merchandise markups and an increase in delivery and logistics expenses. Lower initial merchandise markups are primarily due to higher inbound transportation expenses.

For the year ended January 31, 2022, the gross profit rate increased by 172 basis points compared to the year ended January 31, 2020. Gross profit dollars increased by $254.1 million to $1.49 billion from $1.24 billion in the year ended January 31, 2020. The increase in gross profit rate was primarily due to record low merchandise markdown rates for all three brands in the retail segment for the year and leverage in store occupancy expense due to the increased penetration of the digital channel in retail segment net sales.

“Record fourth quarter sales were driven by positive ‘comps’ at all brands,” said Richard A Hayne, chief executive officer. “Strong customer response to our early spring offerings bode well for continued sales growth in the first quarter.”

Fibre2Fashion News Desk (RR)