The US retail group Urban Outfitters Inc. exceeded market expectations in the second quarter of the 2023/24 financial year. On Tuesday evening, the company reported surprisingly significant increases in sales and profits.
In the period from May to July, group sales reached a new record level of 1.27 billion US dollars (1.18 billion euros). Compared to the same quarter of the previous year, revenues increased by 7.5 percent.
A 12.6 percent drop in sales to $346.4 million at retail chain Urban Outfitters was more than offset by strong growth in the other segments. Anthropologie Group revenues increased 10.6 percent to $530.1 million and Free People Group revenues increased 22.0 percent to $331.2 million.
The Nuuly segment, which carries the group’s fashion rental service and second-hand business, reported sales up 93.9 percent to $55.8 million, while the Menus & Venues hospitality division grew 15.4 percent to 8 $.7 million to.
In addition to revenue growth, lower rebates and lower transportation costs helped operating income grow to $132.1 million, up 53.9 percent year-on-year. The net result even rose by 75.0 percent to 104.1 million US dollars (96.1 million euros).
In the first six months of the current financial year, the group’s turnover was 2.39 billion US dollars, which meant an increase of 6.7 percent compared to the same period last year. Net income increased 72.4 percent to $156.9 million.