Urban Outfitters Inc. reported record first-quarter earnings and sales, with increases across all its divisions.
The apparel retailer’s earnings and revenue topped expectations, with especially strong performances from its wholesale and subscription segments, and its FP Group business, which is made up of Free People and activewear brandFP Movement.
“Both Free People and FP Movement delivered an exceptional strong quarter, including record-low markdown rates,” Sheila Harrington, global CEO of the company’s namesake brand and FP Group, said on the earnings call.
Harrington added that Free People and FP Movement are now being managed as two two independent ecosystems, “each serving genuinely different market opportunities,” rather than as parent and sub brand.
“This evolution is not a sudden shift, but a deliberate and strategic transition,” she said. “We are moving thoughtfully to ensure we maximize what is best for both brands not just from a top line perspective, but through the lens of disciplined expense management, and intellectual leverage.”
Urban Outfitters plans to open approximately 54 new stores and close approximately 19 stores during its current year.
“Our net new store growth is primarily being driven by growth in FP movement Free People, and Anthropologie stores,” CFO Melanie Marein-Efron told analysts on the call.
The lineup includes 21 FP Movement stores 12 Free People stores, 13 Anthropologie stores, and eight Urban Outfitters stores.
