Urban Outfitters owner sees income rise 75% in Q2

Urban Outfitters Inc, the owner of Urban Outfitters, has reported a net income of $104.1m (£82m) for the three months ended in July 2023, a 75% increase compared to the $59.4m (£46.8m) reported in Q2 2022. 

Total company net sales for the last three months increased 7.5% to a record $1.27bn (£1bn). The retail segment sales increased 5.9% and were driven by mid-single-digit positive growth in both retail store sales and digital channel sales. 

In particular, the Free People Group brand sales increased by 26.9%, the Anthropologie Group by 10.6%, while the Urban Outfitters brand decreased at 14.1%.

For the three months, gross profit dollars increased 21.6% to $455.6m (£359.2m) from the $374.6m (£295.3m) reported the previous year. The company said that the increase in gross profit rate was primarily due to higher initial merchandise markups and lower merchandise markdowns at all three retail segment brands.

Net income for the six months ended in July amounted to $156.9m (£123.7m). 

For the six months, total company net sales increased 6.7% to a record $2.39bn (£1.8bn). Retail segment net sales increased 5.1%, with a 22.5% increase for the Free People Group, a 11.9% increase for the Anthropologie Group, and a 13.7% decrease for Urban Outfitters. 

During the six months, gross profit dollars increased 18.5% to $826.8m (£651.9m) from $697.9m (£550.3m) reported the previous year. 

In the same period, the company also opened 16 new retail locations, including nine Free People Group stores, four Urban Outfitters stores, two Anthropologie group stores and one Menus and Venus restaurant. 

Richard A. Hayne, chief executive officer, said: “We are proud to report record second quarter sales that helped drive a 72% increase in EPS. Also gratifying is that Q2 sales strength has continued to date in Q3.”