Urban Outfitters, Inc. URBN, a leading lifestyle products and services company, has unveiled its net sales figures for the two and eleven months ended Dec. 31, 2024, respectively. The company, which operates several global consumer brands, including Anthropologie, Free People, Urban Outfitters, FP Movement and Nuuly, witnessed significant growth across its diverse retail and wholesale segments during the holiday period.
URBN Stock Past Three-Month Performance
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Let Us Delve Deeper Into URBN’s Sales Data
Urban Outfitters reported a 10% year-over-year increase in total net sales, for the two months ended Dec. 31, 2024. Retail segment net sales rose 7%, with comparable Retail segment net sales growing 6%. The growth was largely driven by the strong performance of the digital channel sales, which saw high single-digit positive growth, alongside low single-digit positive growth from retail store sales.
Urban Outfitters’ brand portfolio delivered a dynamic mix of performances during the holiday season. Anthropologie led the way with an impressive 10% year-over-year increase in comparable Retail segment net sales, while Free People followed closely with 9% growth. However, the Urban Outfitters brand faced a 4% decline in comparable net sales, indicating some challenges in the competitive retail environment.
FP Movement stood out with a remarkable 23% rise in the Retail segment comparable net sales and Free People brand’s Retail segment also added to the momentum with a 6% increase.
The Nuuly segment achieved a remarkable 55% year-over-year jump in net sales. This surge was fueled by a 53% increase in average active subscribers compared with the prior-year period. In the Wholesale segment, Urban Outfitters recorded solid 29% growth year over year, buoyed by Free People's increased sales to specialty customers and department stores.
For the eleven months ended Dec. 31, 2024, Urban Outfitters continued its growth trajectory, reporting a 7% year-over-year increase in total net sales. The Retail segment showed consistent positive performance, with a 5% increase in net sales and a 3% rise in comparable net sales. This growth was driven by mid-single-digit positive growth in digital channel sales, complemented by low single-digit positive gains in retail store sales.
The Nuuly segment posted an impressive 54% year-over-year increase in net sales, fueled by a 51% jump in average active subscribers. Meanwhile, the Wholesale segment experienced 15% year-over-year growth, driven by higher Free People wholesale sales.
URBN's Store Details & Expansion
During the eleven months of 2024, Urban Outfitters expanded its physical footprint, opening 45 new retail locations. This expansion included 26 Free People stores (15 of which were FP Movement), 12 Anthropologie locations and seven Urban Outfitters stores. However, the company also closed 12 locations, consisting of six Urban Outfitters stores, four Anthropologie stores and two Free People stores.
As of Dec. 31, 2024, Urban Outfitters’ portfolio includes 263 Urban Outfitters stores, 245 Anthropologie stores and 222 Free People stores (which includes 53 FP Movement stores) across the United States, Canada and Europe. The company operates websites and catalogs for all its brands.
It also operates nine Menus & Venues restaurants, seven Urban Outfitters franchisee-owned stores and two Anthropologie franchisee-owned stores as of Dec. 31, 2024. The wholesale divisions of Free People, FP Movement and Urban Outfitters maintain the company's global product distribution through department stores, specialty stores, various digital platforms and the company's Retail segment.
Wrapping Up: URBN’s Successful Performance
Urban Outfitters’ strong holiday performance highlights its ability to drive growth across various segments, particularly digital sales and the company’s rapidly expanding subscription service, Nuuly. With continued expansion of its retail footprint and strategic brand performance, URBN seems well-positioned to maintain its growth trajectory in 2025 and beyond.
Shares of this Zacks Rank #1 (Strong Buy) company have rallied 49.7% in the past three months compared with the industry’s growth of 13.8%.
Three Other Solid Picks
Abercrombie & Fitch Co. ANF operates as an omnichannel retailer that offers an assortment of apparel, personal care products and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks brands. The company currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings indicates growth of 15% and 69.3%, respectively, from the previous year’s reported number. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
The Gap, Inc. GAP operates as an apparel retail company that offers apparel, accessories and personal care products for men, women and children under the Old Navy, Gap, Banana Republic and Athleta brands. The company currently sports a Zacks Rank #1. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
The Zacks Consensus Estimate for Gap’s current fiscal-year sales and earnings indicates growth of 0.8% and 41.3%, respectively, from the previous year’s reported figures.
Deckers Outdoor Corporation DECK designs, markets and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities in the United States and internationally. It currently carries a Zacks Rank #1. DECK delivered a trailing four-quarter average earnings surprise of 41.1%.
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings indicates growth of 13.6% and 13.8%, respectively, from the previous year’s reported figures.
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