PHILADELPHIA, PA — Urban Outfitters, Inc. (NASDAQ: URBN) announced record-breaking financial results for the third quarter of 2024, reporting a net income of $102.9 million and earnings per diluted share of $1.10 for the period ending October 31. Total company net sales reached an all-time high of $1.36 billion, reflecting a 6.3% increase over the same period last year.
The Retail segment led the growth with a 3.2% increase in net sales. Comparable Retail segment net sales rose 1.5%, fueled by positive growth in digital and in-store sales. Anthropologie and Free People were standouts, posting sales increases of 5.8% and 5.3%, respectively. Meanwhile, Urban Outfitters experienced a decline of 8.9% in comparable sales.
Nuuly, the company’s clothing rental and resale platform, saw a 48.4% jump in net sales, driven by a 51% rise in active subscribers compared to last year’s quarter. The Wholesale segment also delivered strong performance, with net sales up 17.4%, predominantly from growth at Free People, which recorded a 20.3% increase in sales to specialty and department stores.
CEO Richard A. Hayne expressed optimism about the company’s performance. “We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – Retail, Subscription, and Wholesale,” he said. He added, “Additionally, we’re optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results.”
For the nine months ending October 31, 2024, Urban Outfitters reported net income of $282.2 million and earnings per diluted share of $2.99. Total company net sales rose 6.7% to $3.91 billion. Retail segment growth was supported by mid single-digit gains in digital channel sales and low single-digit growth in stores. Nuuly’s net sales surged 53.9%, marking its continued growth trajectory.
The company continued strategic investments in its retail footprint, opening 36 new locations during the nine-month period, including 20 Free People stores (12 of which are FP Movement locations), 9 Anthropologie locations, and 7 Urban Outfitters stores. At the same time, 11 underperforming stores were closed, aligning with the company’s focus on optimizing operations.
Urban Outfitters also advanced its share repurchase program, buying back 1.2 million shares for $52 million during the period. A total of 18 million shares remain available under the program authorized in 2019.
Gross profit for Q3 increased 9.4% compared to the previous year, driven by improved merchandise markups across all segments and enhanced operational efficiencies. Despite a 6.7% rise in selling, general, and administrative expenses, largely tied to marketing and store payroll, the company maintained its momentum through initiatives aimed at supporting growth and customer engagement.
Urban Outfitters’ record-breaking quarter demonstrates strong execution in a challenging retail environment as it continues to focus on innovation, sustainability, and enhancing customer experiences.
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