Urban Outfitters Inc. (NASDAQ: URBN) stock gained by 5.44% at last close whereas the URBN stock price fell by 4.91% in the after-hours trading. Urban Outfitters operates 255 Urban Outfitters shops in the United States, Canada, and Europe, offering lifestyle-oriented general goods, consumer items, and services through a portfolio of international consumer brands.
URBN stock’ Financial Highlights
Urban Outfitters released its second quarter fiscal 2022 financial results. However, this announcement provides a comparison of fiscal 2022 earnings to fiscal 2020 results due to the significant impact of COVID-19 on their business operations in fiscal 2021, including required store closures. The comparison of fiscal 2022 earnings to fiscal 2020 results, according to management, is a more relevant gauge of the Company’s financial performance.
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- For the three months ending July 31, 2021, the Company’s net sales reached a new high of $1.16 billion. When compared to the three months ending July 31, 2019, net sales grew by 20.3%. Net sales in the Comparable Retail category grew by 22%, owing to significant double-digit growth in digital channel sales, slightly offset by low single-digit negative retail outlet sales due to lower traffic.
- The gross profit rate rose by 478 basis points for the three months ended July 31, 2021, relative to the three months ended July 31, 2019. In the three months ending July 31, 2019, gross profit dollars grew by $119.4 million to $435.3 million which is a rise from $315.9 million. The rise in gross profit rate was largely attributable to the Retail segment’s record low product markdown rates in the second quarter, as well as a reduction in store occupancy expenditure, owing to the growing penetration of the digital channel in Retail segment sales revenue.
- When comparing total inventory of Q2 fiscal 2022 to total inventory of Q2 fiscal 2020, total inventory grew by $43.1 million, or 9.8%. The rise in inventory was caused by a rise in net sales.
- Selling, general, and administrative expenditures rose by $31.6 million, or 13.3%, in the three months ended July 31, 2021, relative to the three months ended July 31, 2019, and dropped to 23.3 percent of net sales from 24.7 percent in the second quarter fiscal 2020.
Richard A. Hayne, Chief Executive Officer commented,
They’re excited to announce record second-quarter sales and profitability, due to outstanding results across all three brands. Thank you to everyone on the Brand, Creative, and Shared teams for their outstanding execution, which resulted in a 110 percent increase in earnings per share in fiscal 2020.