Urban Outfitters sales fall but sister brands thrive
The owner of Urban Outfitters has reported an increase in net sales of 7.5% to $1.27bn (£1bn) during the second quarter, compared to the same period in 2022.
However, sales at the clothing retailer fell by 14.1% during the three months to the end of July.
The company’s owner, URBN, attributed the group’s overall growth to the performance of its other brands, Free People and Anthropologie, where sales grew by 26.9% and 10.6% respectively.
The group’s resale marketplace Nuuly also saw an increase in sales, of $55.6m (£43.6m) compared to 2022, with subscriber numbers skyrocketing by 85%.
In all three retail brands, gross profit increased by 21.6% to $455.6m (£357.4m) due to higher markups and lower markdowns, URBN said.
During the first half of the year, the group recorded an increase in gross profit of 18.5% to $826.8m (£648.6m).
The company opened a total of 16 new retail locations globally during the period including: 9 Free People stores; four Urban Outfitters stores; two Anthropologie Group stores; and one Menus & Venues restaurant; and closed eight retail locations including: three Urban Outfitters stores; three Anthropologie stores; one Free People store; and one Menus & Venues restaurant. One Urban Outfitters franchisee-owned store was also opened.
Richard Hayne, chief executive of URBN, said: “We are proud to report record second quarter sales that helped drive a 72% increase in EPS (earnings per share), also gratifying is that Q2’s sales strength has continued to date in Q3.”