Urban Outfitters(URBN) Newsfilter·2025-02-26 21:05Core Insights - Urban Outfitters, Inc. reported record net income of $402.5 million and earnings per diluted share of $4.26 for the year ended January 31, 2025, reflecting strong performance across all segments [1][15][4]. Financial Performance - For the three months ended January 31, 2025, net income was $120.3 million, with earnings per diluted share at $1.28, compared to $47.8 million and $0.50 in the same period of 2024 [1][15]. - Adjusted net income for the same quarter was $98.1 million, up from $65.8 million year-over-year, with adjusted earnings per diluted share increasing from $0.69 to $1.04 [2][15]. - Total company net sales for the three months ended January 31, 2025, reached $1.64 billion, a 10.1% increase from the previous year [3][4]. Segment Performance - Retail segment net sales increased by 6.3% for the quarter, with comparable sales up 5.1%, driven by digital channel growth [3][4]. - Subscription segment net sales surged by 78.4% for the quarter, primarily due to a 53.5% increase in average active subscribers [3][4]. - Wholesale segment net sales rose by 26.2%, largely attributed to a 27.0% increase in Free People wholesale sales [3][4]. Yearly Overview - For the year ended January 31, 2025, total company net sales were $5.55 billion, a 7.7% increase from the previous year [4][15]. - Retail segment net sales grew by 4.7%, with comparable sales up 3.4% [4][15]. - Subscription segment net sales increased by 60.4% year-over-year, driven by a 51.3% rise in average active subscribers [4][15]. Profitability Metrics - Gross profit for the three months ended January 31, 2025, increased by 21.5% to $527.7 million, with a gross profit rate of 32.3%, up from 29.2% in the prior year [8][9]. - For the year, gross profit rose by 12.3% to $1.93 billion, with a gross profit rate of 34.7%, compared to 33.3% in the previous year [9][10]. Inventory and Expenses - Total inventory as of January 31, 2025, increased by $70.9 million, or 12.9%, compared to the previous year [11]. - Selling, general and administrative expenses for the three months ended January 31, 2025, rose by 8.6% to $402.4 million, but leveraged as a percentage of net sales [12][13]. Shareholder Actions - The company repurchased 1.2 million shares for approximately $52 million during the twelve months ended January 31, 2025, with 18 million shares remaining under the repurchase program [16]. Store Operations - During the twelve months ended January 31, 2025, the company opened 57 new retail locations and closed 30, indicating a strategic expansion despite some closures [17].