PHILADELPHIA, PA — Urban Outfitters, Inc. (NASDAQ: URBN), the multifaceted lifestyle retailer, has reported record net incomes for the final quarter and year ended January 31, 2024. The company’s financial might is on full display with a net income of $47.8 million for the fourth-quarter and a whopping $287.7 million for the year, embodying earnings of $0.50 and $3.05 per diluted share respectively.
When we factor out operational and financial adjustments pertaining to variables like store impairment and lease abandonment charges and others, the adjusted net income for the fourth quarter came in even stronger at $65.7 million, with earnings per diluted share of $0.69. For the full year, the adjusted figures climbed to $306.7 million with earnings of $3.25 per diluted share.
Total sales, too, had a stellar run. The company reported fourth-quarter net sales of $1.49 billion, an increase of 7.3% from the previous year. Adjusted sales saw an even larger uptick of 8.0% to reach $1.50 billion. Much of this growth was driven by the robust performance of the company’s retail segment. A high single-digit growth in digital sales and a positive growth in retail store sales were the key factors contributing to this growth.
Looking at the full year, the company’s performance continued to impress. Total net sales rose by 7.5% to hit a record high of $5.15 billion, while adjusted net sales increased 7.7% to achieve $5.16 billion. Once again, the retail segment was the foundation of this growth, with net sales and comparable net sales rising by 6.0% and 5.0% respectively.
The company’s gross profit rates also saw significant improvements. For the three months ending January 2024, gross profit rate increased by 232 basis points, and gross profit dollars rose by 16.6% to $434.2 million. Adjusted gross profit rates also increased by 293 basis points, while adjusted gross profit dollars saw a rise of 19.6% to reach $451.8 million. These increases were driven mainly by higher initial merchandise markups and lower transportation costs.
During the past year, Urban Outfitters chose not to repurchase any common shares. The company had, however, repurchased and retired 4.7 million common shares in the previous year. As of January 31, 2024, there remained 19.2 million common shares under the share repurchase program.
As the company continues to expand, it opened a total of 26 new retail locations and closed 20. The company’s retail portfolio now includes 262 Urban Outfitters stores, 237 Anthropologie stores, and 198 Free People stores, exhibiting a wide range of consumer products and services.
This record-breaking performance spotlights Urban Outfitters’ position as a dominant player in the retail industry. With an unwavering focus on growth and maximizing shareholder value, the company’s commitment to driving sales and customer engagement is clear. As it continues its journey, Urban Outfitters, Inc. is a company to watch in the coming years.
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