URBN: URBN Reports Record Q4 Sales and FY'25 Profits

PHILADELPHIA , Feb. 26, 2025 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement , Urban Outfitters and Nuuly brands, today announced net income of $120.3 million and earnings per diluted share of $1.28 for the three months ended January 31, 2025 . For the year ended January 31, 2025 , net income was a record $402.5 million and earnings per diluted share were $4.26 . For the three months ended January 31, 2025 and 2024, adjusted net income was $98.1 million and $65.8 million , respectively, and adjusted earnings per diluted share were $1.04 and $0.69 , respectively. For the years ended January 31, 2025 and 2024, adjusted net income was $383.9 million and $304.6 million , respectively, and adjusted earnings per diluted share were $4.06 and $3.23 , respectively. Adjusted net income and earnings per diluted share for the three months ended January 31, 2025 , excludes a release of income tax reserves. Adjusted net income and earnings per diluted share for the year ended January 31, 2025 , excludes store impairment and lease abandonment charges and a release of income tax reserves. Adjusted net income and earnings per diluted share for the three months and year ended January 31, 2024 , excludes store impairment and lease abandonment charges, an asset impairment charge and a change in revenue recognition method for Nuuly. See "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. Total Company net sales for the three months ended January 31, 2025 , increased 10.1% to a record $1.64 billion . Total Company net sales for the three months ended January 31, 2025 , increased 9.4% compared to total Company adjusted net sales for the three months ended January 31, 2024 . Total Retail segment net sales increased 6.3%, with comparable Retail segment net sales increasing 5.1%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 8.3% at Anthropologie and 8.0% at Free People and decreased 3.5% at Urban Outfitters . Subscription segment net sales increased by 78.4%. Subscription segment net sales increased by 55.6% compared to Subscription segment adjusted net sales for the three months ended January 31, 2024 . The Subscription segment adjusted net sales increase was primarily driven by a 53.5% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 26.2% driven by a 27.0% increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores. For the year ended January 31, 2025 , total Company net sales increased 7.7% to a record $5.55 billion . Total Company net sales for the year ended January 31, 2025 , increased 7.6% compared to total Company adjusted net sales for the year ended January 31, 2024 . Total Retail segment net sales increased 4.7%, with comparable Retail segment net sales increasing 3.4%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 8.9% at Free People and 7.7% at Anthropologie and decreased 8.7% at Urban Outfitters . Subscription segment net sales increased by 60.4%. Subscription segment net sales increased by 56.8% compared to Subscription segment adjusted net sales for the year ended January 31, 2024 . The Subscription segment adjusted net sales increase was primarily driven by a 51.3% increase in average active subscribers in the current year versus the prior year period. Wholesale segment net sales increased 15.5% driven by a 17.9% increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales. "We are pleased to announce record Q4 revenues and full-year profits," said Richard A. Hayne , Chief Executive Officer. "Our success was driven by strength across all three segments - Retail, Subscription and Wholesale. We believe these results demonstrate the effectiveness of our strategic initiatives and give us confidence in URBN's continued success," finished Mr. Hayne . Net sales by brand and segment for the three and twelve-month periods were as follows: Three Months Ended Twelve Months Ended January 31 , January 31 , 2025 2024 2025 2024 Net sales by brand Anthropologie ( 1) $ 743,030 $ 679,524 $ 2,426,438 $ 2,233,070 Free People ( 2) 410,618 362,266 1,460,295 1,298,974 Urban Outfitters 360,192 372,566 1,247,742 1,352,073 Nuuly 112,524 63,080 378,394 235,859 Menus & Venues 9,756 8,758 37,797 33,261 Total Company $ 1,636,120 $ 1,486,194 $ 5,550,666 $ 5,153,237 Net sales by segment Retail Segment $ 1,454,996 $ 1,368,742 $ 4,896,694 $ 4,678,698 Subscription Segment ( 3) 112,524 63,080 378,394 235,859 Wholesale Segment 68,600 54,372 275,578 238,680 Total Company $ 1,636,120 $ 1,486,194 $ 5,550,666 $ 5,153,237 Adjusted net sales by brand and segment for the three and twelve-month periods were as follows: Three Months Ended Twelve Months Ended January 31 , January 31 , 2025 2024 2025 2024 Adjusted net sales by brand Anthropologie ( 1) $ 743,030 $ 679,524 $ 2,426,438 $ 2,233,070 Free People ( 2) 410,618 362,266 1,460,295 1,298,974 Urban Outfitters 360,192 372,566 1,247,742 1,352,073 Nuuly 112,524 72,309 378,394 241,315 Menus & Venues 9,756 8,758 37,797 33,261 Total Company $ 1,636,120 $ 1,495,423 $ 5,550,666 $ 5,158,693 Adjusted net sales by segment Retail Segment $ 1,454,996 $ 1,368,742 $ 4,896,694 $ 4,678,698 Subscription Segment ( 3) 112,524 72,309 378,394 241,315 Wholesale Segment 68,600 54,372 275,578 238,680 Total Company $ 1,636,120 $ 1,495,423 $ 5,550,666 $ 5,158,693 (1) Anthropologie includes the Anthropologie and Terrain brands. (2) Free People includes the Free People and FP Movement brands. (3) The Subscription segment (formerly known as the Nuuly segment) includes the Nuuly brand, which is primarily a monthly women's apparel subscription rental service. For the three months ended January 31, 2025 , the gross profit rate increased by 304 basis points compared to the three months ended January 31, 2024 , and gross profit dollars increased 21.5% to $527.7 million from $434.2 million . For the three months ended January 31, 2025 , the gross profit rate as a percentage of net sales increased by 203 basis points compared to the adjusted gross profit rate as a percentage of adjusted net sales in the three months ended January 31, 2024 . Adjusted gross profit dollars increased by 16.8% to $527.7 million from $451.9 million . The increase in adjusted gross profit rate was primarily due to improved Retail segment markdowns driven by lower markdowns at Urban Outfitters , which were partially offset by an increase at Free People. The increase in adjusted gross profit dollars was due to higher adjusted net sales and the improved adjusted gross profit rate. For the year ended January 31, 2025 , the gross profit rate increased by 142 basis points compared to the year ended January 31, 2024 , and gross profit dollars increased 12.3% to $1.93 billion from $1.72 billion . For the year ended January 31, 2025 , the adjusted gross profit rate as a percentage of net sales increased by 122 basis points compared to the adjusted gross profit rate as a percentage of adjusted net sales in the year ended January 31, 2024 . Adjusted gross profit dollars increased by 11.5% to $1.93 billion from $1.73 billion . The increase in adjusted gross profit rate for the year ended January 31, 2025 , was primarily due to higher initial merchandise markups for all segments primarily driven by Company cross-functional initiatives. The increase in adjusted gross profit dollars was due to higher adjusted net sales and the improved adjusted gross profit rate. As of January 31, 2025 , total inventory increased by $70.9 million , or 12.9%, compared to total inventory as of January 31, 2024 . Total Retail segment inventory increased 10.1%. Retail segment comparable inventory increased 11.3%. Wholesale segment inventory increased 43.7%. The increase in inventory for both segments was to support increased sales and planned early receipts. For the three months ended January 31, 2025 , selling, general and administrative expenses increased by $31.9 million , or 8.6%, compared to the three months ended January 31, 2024 . Selling, general and administrative expenses leveraged 33 basis points as a percentage of net sales and expressed as a percentage of adjusted net sales leveraged 18 basis points compared to the three months ended January 31, 2024 . The leverage in selling, general and administrative expenses as a rate to adjusted net sales was primarily related to a leverage in store payroll expenses due to the Retail segment stores net sales growth. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth. For the year ended January 31, 2025 , selling, general and administrative expenses increased by $113.7 million , or 8.5%, compared to the year ended January 31, 2024 . Selling, general and administrative expenses deleveraged 19 basis points as a percentage of net sales and expressed as a percentage of adjusted net sales deleveraged 22 basis points compared to the year ended January 31, 2024 . The deleverage in selling, general and administrative expenses as a rate to adjusted net sales was primarily related to increased marketing ex