PHILADELPHIA - Urban Outfitters, Inc. (NASDAQ:URBN) reported better-than-expected second quarter results, sending shares up 1.4% in after-hours trading on Wednesday.
The lifestyle products retailer posted earnings per share of $1.24 for the quarter ended July 31, 2024, surpassing analyst estimates of $1.00. Revenue rose 6.3% YoY to a record $1.35 billion, slightly above the consensus forecast of $1.34 billion.
Total Retail segment net sales increased 3.1%, with comparable Retail segment net sales rising 2.0%. The Nuuly segment saw strong growth, with net sales surging 62.6% driven by a 55% increase in average active subscribers.
"We are pleased to report record second quarter sales fueled by strength across all three segments - Retail, Nuuly and Wholesale," said CEO Richard A. Hayne. "Equally impressive, four of our five brands delivered record operating profits during the second quarter."
By brand, Anthropologie net sales grew 7.4% to $569.1 million, while Free People sales increased 10.2% to $365.1 million. However, Urban Outfitters brand sales declined 8.6% to $316.7 million.
The company's gross profit rate improved by 68 basis points to 36.5%, primarily due to higher initial merchandise markups across all segments.
For the six months ended July 31, Urban Outfitters reported net income of $179.3 million and earnings per diluted share of $1.89.
The company opened 19 new retail locations and closed 9 during the first half of the fiscal year. As of July 31, Urban Outfitters operated 723 stores across its various brands.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.