Urban Outfitters, Inc. reported second-quarter sales growth of 13.9% to $1.24 billion, surpassing analysts’ estimates and marking a record high for the company.
**Key Financial Highlights:**
* Net sales increased by 13.9% year-over-year to $1.24 billion, exceeding the $1.22 billion consensus estimate.
* Comparable sales grew by 11.0%, outperforming the 9.1% increase anticipated by analysts.
* Digital sales continued to fuel growth, with a 19% rise year-over-year.
* Gross profit margin expanded by 120 basis points to 37.0%.
* Net income surged by 32.5% to $108.2 million.
* Diluted earnings per share climbed by 33.3% to $1.01, exceeding the $0.92 consensus estimate.
**Brand Performance:**
* Urban Outfitters: Comparable sales rose by 10.8%, driven by strength in women’s apparel and accessories.
* Anthropologie Group: Comparable sales increased by 14.7%, boosted by home decor and lifestyle products.
* Free People: Comparable sales grew by 7.6%, supported by ongoing demand for its signature bohemian aesthetic.
* Nuuly: Subscription rental service revenue increased by 25.5%, reflecting growing consumer interest in sustainable fashion practices.
**Outlook:**
Urban Outfitters remains optimistic about its future prospects and is focused on executing its strategic initiatives, including store optimization, digital expansion, and global growth. The company is well-positioned to capitalize on the ongoing trend towards experiential retail and the increasing popularity of online shopping. For the full year, Urban Outfitters continues to project comparable sales growth in the low double-digits and a gross profit margin expansion of approximately 50 basis points.
**Analyst Commentary:**
Analysts praised Urban Outfitters’ strong second-quarter performance and reaffirmed their positive outlook for the company. Several analysts cited the company’s successful product offerings, effective marketing, and innovative retail concepts as key drivers of its continued growth. Cowen & Co. analyst Oliver Chen maintained an .
