Urban Outfitters, Inc. announced a net income of $127 million and earnings per diluted share of $1.28 for the three months ended July 31, 2021. For the six months ended July 31, 2021, net income was $181 million, and earnings per diluted share were $1.82.
Due to the material impact of COVID-19 on URBN’s business operations in fiscal 2021, including mandated store closures, it offered a comparison of fiscal 2022 results to fiscal 2020. Management said it “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 July 31, 2021 were $1.16 billion. Net sales increased 20.3 percent compared to the three months ended July 31, 2019. Comparable Retail segment net sales increased 22 percent, driven by strong double-digit growth in digital channel sales, partially offset by low-single-digit negative retail store sales due to reduced store traffic.
By brand, comparable Retail segment net sales increased 53 percent at the Free People Group, 20 percent at Urban Outfitters and 14 percent at the Anthropologie Group. Total Retail segment net sales increased 24 percent. Wholesale segment net sales decreased 30 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.
For the six months ended July 31, 2021, total company net sales increased 14.1 percent compared to the six months ended July 31, 2019. Comparable Retail segment net sales increased 17 percent driven by strong double-digit growth in digital channel sales, partially offset by 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 27 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.
“We’re pleased to report record second-quarter sales and earnings driven by an extraordinary performance at all three brands,” said Richard A. Hayne, CEO, “Congratulations to all Brand, Creative and Shared teams for the exceptional execution that led to a 110 percent increase in earnings per share over fiscal 2020,” finished Hayne.
Photo courtesy URBN/Free People