US retailer Urban Outfitters May-July net income soars to $127 mn

26 Aug '21

2 min read

Pic: Urban Outfitters

Second quarter (Q2) sales at Urban Outfitters (URBN), a US-based lifestyle retail company, increased 20.3 per cent to $1.16 billion against sales of $962.3 million in same period of FY20. The company’s net income during Q2 FY22 expanded to $127.3 million (Q2 FY20: $60.3 million), while income from operations surged to $165.8 million ($78.0 million).

“We’re pleased to report record second quarter sales and earnings driven by extraordinary performance at all three brands,” Richard A Hayne, chief executive officer at URBN, said in a press release.

During the second quarter ended on July 31, 2021, sales from Urban Outfitters brand climbed to $441.6 million ($355.0 million), whereas Anthropologie Group sales were up to $450.6 million ($295.1 million). Furthermore, Free People Group recorded sales of $249.7 million ($205.9 million).

The company said its gross profit for the three-month period was $435.3 million ($315.8 million), whereas selling, general and administrative expenses totalled to $269.4 million ($237.8 million).

Comparable retail segment sales improved 22 per cent, 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, according to the American leading retailer. Wholesale segment sales dropped 30 per cent in Q2, primarily due to reduction of the Free People Group’s sales to promotional wholesale customers.

Fibre2Fashion News Desk (JL)

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