Urban Outfitters Q4 sales increase by 13.9 percent

Urban Outfitters, Inc. (URBN) net sales for the three months ended January 31, 2022, were 1.33 billion dollars, up 13.9 percent compared to the three months ended January 31, 2020.

The company said, comparable retail segment net sales increased 14 percent, driven by strong double-digit growth in digital channel sales, partially offset by low double-digit negative retail store sales primarily due to reduced store traffic.

By brand, comparable retail segment net sales increased 49 percent at the Free People Group, 14 percent at the Anthropologie Group and 3 percent at Urban Outfitters.

Highlights of Urban Outfitters' Q4 and full year results

Total retail segment net sales increased 15 percent, while wholesale segment net sales decreased 22 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

URBN believes that the total company fourth quarter gross margin could deleverage more than planned primarily due to higher than anticipated inbound transportation costs.

For the year ended January 31, 2022, total company net sales increased 14.2 percent compared to the year ended January 31, 2020. Comparable retail segment net sales increased 16 percent, driven by double-digit growth in digital channel sales, partially offset by low double-digit negative retail store sales due to reduced store traffic. Wholesale segment net sales decreased 23 percent primarily from reducing the Free People Group’s sales to promotional wholesale customers.

Francis Pierrel joins the company as president of Urban Outfitters

The company added that Francis Pierrel has joined the URBN family as president of Urban Outfitters with responsibility for the brand in North America. Pierrel will report directly to Sheila Harrington, global chief executive officer of Urban Outfitters and the Free People Group.

Most recently he served as chief executive officer, Club Monaco, where he drove increases in revenues and profitability. Prior to Club Monaco, he served as president of stores and ecommerce for Ralph Lauren in North America. Pierrel has also held senior roles in wholesale, retail and ecommerce at Lacoste and Diesel across the US and Europe.

During the year ended January 31, 2022, the company opened a total of 56 new retail locations including 29 Free People Group stores (including 18 FP Movement stores), 17 Urban Outfitters stores and nine Anthropologie Group stores. The company closed 18 retail locations including eight Anthropologie Group stores, five Free People Group stores and three Urban Outfitters stores. During the year ended January 31, 2022, one Urban Outfitters franchisee-owned store and one Anthropologie Group franchisee-owned store were opened.