Urban Outfitters has announced the first quarter results reporting strong increase in net income to 108.3 million dollars and earnings per diluted share to 1.16 dollars. The lifestyle products and services company, which operates brands like Anthropologie, Free People, FP Movement, Urban Outfitters, and Nuuly, saw its total net sales climb 10.7 percent to 1.33 billion dollars.
“We are excited to announce record first quarter revenues and profits,” said CEO Richard A. Hayne. “Our success was driven by positive sales growth and improved profitability across all brands and segments,” Hayne added.
The company's retail segment experienced a 6.4 percent increase in net sales, with comparable retail segment net sales rising 4.8 percent fueled by mid single-digit positive growth in both retail store and digital channel sales. Specifically, Anthropologie saw a 6.9 percent increase in comparable net sales, Free People grew by 3.1 percent, and Urban Outfitters recorded a 2.1 percent increase.
The subscription segment’s net sales surged by 59.5 percent, primarily due to a 52.9 percent increase in average active subscribers. The wholesale segment also performed strongly, with net sales up 24.2 percent, driven by a 25.6 percent increase in Free People wholesale sales to specialty customers and department stores.
In addition to its strong financial performance, Urban Outfitters continued its share repurchase program. During the first quarter, the company repurchased and retired 3.3 million shares for approximately 152 million dollars.
The company also expanded its physical footprint during the quarter, opening 13 new retail locations. These include nine Free People stores (five of which are FP Movement stores), two Anthropologie stores, and two Urban Outfitters stores. Concurrently, two Free People stores were closed.