US' Urban Outfitters reports record net sales of $5.15 bn in FY24

01 Mar '24

2 min read

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Urban Outfitters achieved a record $5.15 billion in net sales for FY24, marking a 7.5 per cent increase.
The Nuuly segment significantly contributed with a surge in subscribers, while Free People and Anthropologie showed robust sales growth.
Q4 FY24 net sales hit $1.49 billion, a 7.3 per cent rise, with net income for the quarter at $47.8 million.

Urban Outfitters, Inc, a leading US-based lifestyle products company, has reported a net sales increase of 7.5 per cent to a record $5.15 billion in fiscal 2024 (FY24). The adjusted net sales saw a slight uptick, reaching $5.16 billion, a 7.7 per cent increase from the previous year.

The retail segment, including the company's flagship brands Free People, Anthropologie, and Urban Outfitters, reported a 6 per cent increase in net sales. Notably, Free People and Anthropologie experienced impressive comparable retail segment net sales growth of 21.4 per cent and 12.3 per cent, respectively. However, Urban Outfitters saw a decrease of 13.8 per cent in comparable sales. The wholesale segment faced a downturn, with net sales decreasing by 4.6 per cent, the company said in a press release.

A standout performer was the Nuuly segment, Urban Outfitters' subscription rental service, which saw net sales increase by $106.2 million and adjusted net sales rise by $115.3 million. This surge was primarily attributed to an 82 per cent increase in average active subscribers year over year.

The company's gross profit rate improved significantly, with a 353-basis-point increase, leading to a 20.2 per cent jump in gross profit dollars to $1.72 billion. Net income for the fiscal year stood at $287.7 million, with earnings per diluted share at $3.05. Adjusted figures showed net income at $306.7 million and earnings per diluted share at $3.25.

In the fourth quarter of fiscal 2024 (Q4 FY24), Urban Outfitters’ net sales increased by 7.3 per cent to $1.49 billion and adjusted net sales climbing to $1.50 billion, up 8.0 per cent. The gross profit rate for the quarter rose by 232 basis points, with adjusted gross profit dollars reaching $451.8 million, a 19.6 per cent increase.

Net income for the quarter was $47.8 million, with earnings per diluted share at $0.50. Adjusted net income was higher at $65.7 million, reflecting adjusted earnings per diluted share of $0.69. The period also saw a significant increase in selling, general, and administrative expenses, which rose by $35.4 million or 10.6 per cent.

As of January 31, 2024, Urban Outfitters reported a decrease in total inventory by $37.3 million, or 6.3 per cent.

“We are pleased to report record fourth quarter sales driven by strength at the Anthropologie, Free People, FP Movement and Nuuly brands,” said Richard A Hayne, chief executive officer. “Positive customer response to our early spring offerings bodes well for continued sales growth in the first quarter.”

Fibre2Fashion News Desk (DP)

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