Urban Outfitters is heading into the holiday shopping season enjoying record sales, primarily driven by shoppers at its Anthropologie and Free People brands.
According to the company’s third-quarter earnings report, sales rose 3.9% from the third quarter of 2021, reaching a record $1.18 billion.
“Consumer demand remains powerful, despite the various sentiment reports that would suggest otherwise,” CEO Richard Hayne said during an earnings call Monday (Nov. 21). “The customer is shopping early and often selecting both apparel and home products.”
He told investors Urban Outfitters saw high demand for sweaters, dresses and denim this year, adding that “fashion newness remains more important than price,” for the company’s customers.
Hayne added that while promotional activity is normally higher in the last quarter of the year, the company is “still planning for a favorable markdown rate” compared to the last two years.
The report showed Urban Outfitters’ comparable sales have increased this year due to double-digit growth in retail store sales driven by rising foot traffic, while digital sales were flat.
During the investors’ call, Chief Financial Officer Melanie Marein-Efron said the $285 million in capital expenditures the company would make this year would be to provide “increased distribution and fulfillment capacity to support our growing digital business.”
Meanwhile, supply chain issues, which helped depress sales for the retailer earlier this year, continue to be an issue for Urban Outfitters
“Although we’re certainly pleased with record results, we are confident that a myriad of supply chain problems throughout the quarter held back both top- and bottom-line results,” said Frank J. Conforti, the company’s co-president and chief operating officer.
The report showed that during the nine months ending Oct. 31 of this year, Urban Outfitters opened 23 new stores across its different bands and closed four locations: two Urban Outfitters, one Free People and one Anthropologie.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More