Urban Outfitters beats Q2 estimates, shares rise

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.

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Source: Investing.com