Urban Outfitters Q3 profits rise 38 per cent

The third quarter profits of Urban Outfitters, owner of brands Anthropologie, Free People, Terrain and Bhldn increased 38 per cent year-over-year, thanks to strength in the Urban and Free People brands, along with reduced overhead expenses. For the three-month period ending October 31, the company’s total revenues declined from $987 million to $969 million. However, many of the company’s losses were in the food and beverage business. Its apparel brands, Urban Outfitters, Free People and even Nuuly increased their profit margins, year-over-year.

Urban Outfitters’ revenues increased from $374 to $394 million; that of Free People’s increased to $206 million from $205 million a year ago, while Nuuly logged $6.7 million in revenues, up from more than $2 million last year. However, the revenues of Anthropologie declined to $358 million from $398 million a year ago.

As a result, the company’s profits increased to $76.7 million for the quarter, from $55.6 million a year earlier. Not surprisingly, comparable retail segment net sales were flat for the quarter as a result of negative retail store sales and reduced in-store traffic with coronavirus cases on the rise and many consumers still fearful of in-person shopping experiences.

By brand, comparable retail segment net sales increased by 17 percent at Free People and 4 percent at Urban Outfitters, but fell by 9 percent at the Anthropologie Group.

The company ended the quarter with $624 million in cash and cash equivalents and 630 stores, or 250 Urban Outfitters locations, 234 Anthropologie units and 146 Free People shops, in addition to the company’s e-commerce businesses and catalogues. Free People also opened its first FP Movement stand-alone store during the quarter.