Urban Outfitters, Inc. (NASDAQ: URBN ) has announced robust financial results for the first quarter of fiscal 2025, with four of its five brands hitting record revenue figures. The company's overall sales increased by 8% to $1.
2 billion, supported by strong growth across Anthropologie, Free People, FP Movement, and Nuuly brands. Despite a decline in the Urban Outfitters brand, recent operational changes have led to positive developments. The earnings call also highlighted expectations of improved sales and product margins, particularly in the second half of the year, and a strategic plan for the Urban brand to be detailed in August.
Key Takeaways Urban Outfitters, Inc. sees substantial revenue growth, with a total sales increase of 8% to $1.2 billion in Q1.
Anthropologie, Free People, FP Movement, and Nuuly brands report double-digit revenue growth. The Urban Outfitters brand experiences a 14% decline in retail segment comp, but shows early signs of recovery. Nuuly brand's subscriber base grows significantly, with over 50,000 new active subscribers.
Company expects mid-single-digit sales growth in Q2 and gross margin improvement in the second half of the year. Company Outlook Urban Outfitters anticipates improved regular price sales and product margins later in the year. Marketing strategies are expected to foster growth in new and total digital customers.
The company projects a gradual improvement in comparable sales, with Q2 and back-half of the year being particularly stro.
