Urban Outfitters posts record Q1 as sales climb 11.4%

Urban Outfitters Inc. announced on Wednesday sales for the first quarter increased 11.4% to a record $1.48 billion, as the U.S. company consolidated growth once again across all brands and channels.

The Philadelphia-based company said retail segment sales increased 8%, with comparable retail segment sales increasing 5.6%, for the quarter ending April 30, driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales. 

By brand, comparable sales surged 9.8% at Free People Group, 9.3% at Urban Outfitters and 1.9% at Anthropologie. Subscription segment sales increased 34.5%, thanks to a 33.3% increase in average active subscribers. Meanwhile, wholesale segment sales increased 24.8% driven by a 26.2% increase in Free People wholesale sales primarily, due to an increase in sales to specialty customers.

The company posted net income of $115.7 million, or $1.30 per diluted share, marking a record quarterly profit.

During the quarter, the group also expanded its store footprint modestly, ending the quarter with 801 stores across its Anthropologie, Free People, FP Movement, Urban Outfitters, and related concepts, up from 793 locations. 

“We are pleased to report record first quarter sales and earnings driven by positive retail segment ‘comps’ at all brands and impressive double-digit growth in both our Wholesale and Subscription segments,” said Richard Hayne, chief executive officer.

“Our customers remain engaged and are responding to compelling fashion trends, giving us confidence in [Urban Outfitters’] continued success.”