Urban Outfitters Inc. reported net income of $89 million and record earnings per share of 89 cents in the third quarter ended October 31. In the year-ago period, earnings were $76.7 million, or 78 cents, a year ago.

For the nine months ended October 31, 2021, net income was $270 million and the record first nine-month period earnings per diluted share were $2.71.

Due to the material impact of COVID-19 on its business operations in fiscal 2021, including mandated store closures, this release includes a comparison of fiscal 2022 results to fiscal 2020. Management views the comparison of fiscal 2022 results to fiscal 2020 as the more meaningful measurement of the company’s business performance.

Total company net sales for the three months ended October 31, 2021, were a record $1.13 billion. Net sales increased 14.6 percent compared to the three months ended October 31, 2019. Comparable Retail segment net sales increased 14 percent, driven by strong double-digit growth in digital channel sales, partially offset by mid-single-digit negative retail store sales primarily due to reduced store traffic. By brand, comparable Retail segment net sales increased 55 percent at the Free People Group, 9 percent at the Anthropologie Group and 7 percent at Urban Outfitters. Total Retail segment net sales increased 16 percent. Wholesale segment net sales decreased 15 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

For the nine months ended October 31, 2021, total company net sales increased 14.3 percent compared to the nine months ended October 31, 2019. Comparable Retail segment net sales increased 16 percent, driven by strong double-digit growth in digital channel sales, partially offset by low double-digit negative retail store sales due to reduced store traffic resulting from temporary store closures and occupancy restrictions in Europe and Canada. Wholesale segment net sales decreased 23 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

“I’m pleased to announce our teams produced record Q3 sales and earnings,” said Richard A. Hayne, Chief Executive Officer. “We are excited that November ‘comp’ sales to date for all brands have accelerated from their Q3 rate,” finished Mr. Hayne.

As of October 31, 2021, total inventory increased by $95.5 million, or 18.0 percent, compared to total inventory as of October 31, 2019. The increase in inventory was due to the increase in net sales and a strategic decision to bring certain product categories in earlier to protect against ongoing supply chain disruptions and delays.

Photo courtesy Urban Outfitters