Urban Outfitters Smashes Records in Q4, Drives Full-Year Profits to New Heights
Urban Outfitters Inc. has announced a record-breaking fourth quarter performance, exceeding expectations and driving full-year profits to new heights. The company's total sales reached $1.6 billion, marking a 9% increase from the same period last year.
In a conference call with investors on February 26th, the company revealed that four out of its five brands performed exceptionally well, posting record fourth-quarter sales. This impressive feat was driven by a 5% increase in retail segment 'comps', thanks to strong direct-to-consumer (DTC) channel sales and low single-digit store comps.
Anthropologie achieved an 8% Retail segment comp, marking its ninth consecutive quarter of year-on-year double-digit operating income growth. Free People also delivered a high single-digit positive retail segment comp, with Wholesale revenue seeing a 26% increase due to healthy full-price sales at the brand.
Nuuly, the company's subscription service, experienced robust double-digit revenue growth, with average active subscribers rising by 53% compared to the prior year. The Wholesale segment saw a significant boost in revenue, driven by strong demand for Urban Outfitters' products.
The company's financial performance was further bolstered by an impressive 17% increase in gross profit dollars, reaching a record $528 million. Gross profit rate also improved nicely by 200 basis points, rising to 32.3%. This significant improvement was driven by better margins across all segments, with the Retail segment seeing a reduction in markdowns at Urban Outfitters and Anthropologie.
Total URBN operating income rose by 54% compared to last year, reaching $125 million, while the operating profit rate improved by over 220 basis points to 7.7%. Net income saw a 49% increase to $98 million or $1.04 per diluted share, further solidifying the company's position as a leader in the retail industry.
"The teams delivered another exceptional quarter, surpassing our plans," said Francis Conforti, Co-President and COO of Urban Outfitters Inc. "We're pleased to announce a record fourth-quarter sales, full-year profits, both of which surpassed our expectations."
The company's impressive performance is a testament to its ability to adapt to changing market conditions and deliver strong results across multiple brands. As Urban Outfitters looks to the future, investors will be watching closely to see if the company can maintain this momentum and continue to drive growth in the years ahead.
