Urban Outfitters Inc. reported net sales for the two months ended December 31, 2019 increased 2.9 percent over the same period last year. Comparable Retail segment net sales increased 3 percent, driven by growth in the digital channel, partially offset by negative retail store sales.
By brand, comparable Retail segment net sales increased 8 percent at Free People and 5 percent at the Anthropologie Group and decreased 1 percent at Urban Outfitters. Total Retail segment net sales increased 3 percent.
Free People’s Retail segment performance was driven by strong, full price sales, as the brand was less promotional during the holiday season. Anthropologie and Urban Outfitters businesses were driven in part by increased promotional activity in apparel, which will put greater pressure on fourth-quarter gross profit margin than originally anticipated. Wholesale segment net sales decreased 9 percent due to an 11 percent decrease in Free People, which was greater than projected. Lastly, in order to meet customer delivery expectations, Urban Outfitters said it spent more on delivery and logistics expenses than originally planned.
For the eleven months ended December 31, 2019, total company net sales increased 0.5 percent over the same period last year. Comparable Retail segment net sales increased 1 percent, driven by growth in the digital channel, partially offset by negative retail store sales. Total Retail segment net sales increased 1 percent. Wholesale segment net sales decreased 5 percent.
