Investing.com -- Shares of Urban Outfitters, Inc. (NASDAQ: NASDAQ:URBN) climbed 3.6% following the announcement of record holiday sales and an overall increase in net sales for the two and eleven months ending December 31, 2024.
The Philadelphia-based retail company reported a 10% increase in total company net sales for the two months ending December 31, 2024, compared to the same period in the previous year. This growth was attributed to a 7% rise in total Retail segment net sales, with comparable Retail segment net sales up by 6%. Notably, the company experienced strong digital channel sales, which saw high single-digit growth, and a modest increase in retail store sales.
Anthropologie and Free People brands were significant contributors to the uptick, with comparable Retail segment net sales jumping 10% and 9%, respectively. The FP Movement brand outperformed, displaying a 23% surge in Retail segment comparable net sales, while the Free People brand saw a 6% increase. The Nuuly segment, Urban Outfitters' subscription rental service, also shone with net sales soaring 55%, driven by a substantial 53% rise in average active subscribers compared to the previous year.
Over the eleven-month period, Urban Outfitters sustained its positive trajectory, with total company net sales advancing 7% compared to the prior year. The Retail segment's net sales grew by 5%, with a 3% increase in comparable Retail segment net sales, buoyed by mid single-digit growth in digital channel sales and low single-digit growth in retail store sales. Nuuly's segment net sales continued to impress with a 54% increase, supported by a significant 51% bump in average active subscribers. The Wholesale segment also reported robust results, with net sales increasing 15%, largely due to heightened sales to specialty customers and department stores.
In terms of store operations, Urban Outfitters expanded its retail presence by opening 45 new retail locations, including 26 Free People stores, 12 Anthropologie stores, and 7 Urban Outfitters stores. Meanwhile, the company closed 12 locations, streamlining its store count in line with its strategic goals.
Investors reacted favorably to the positive sales performance, particularly during the crucial holiday season, propelling the stock upward in today's trading session.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.