Urban Outfitters, Inc. (NASDAQ:URBN) has announced its third quarter results for the period ended October 31, 2024. The company reported record net income of $102.9 million and earnings per diluted share of $1.10 for the third quarter, and for the nine months ended October 31, 2024, net income was $282.2 million and earnings per diluted share were $2.99.
Total company net sales for the three months ended October 31, 2024, increased 6.3% to a record $1.36 billion. Total retail segment net sales increased 3.2%, with comparable retail segment net sales increasing 1.5%. For the nine months ended October 31, 2024, total company net sales increased 6.7% to a record $3.91 billion. Total retail segment net sales increased 4.0%, with comparable retail segment net sales increasing 2.6%.
In terms of specific brand performance, comparable retail segment net sales increased 5.8% at Anthropologie, 5.3% at Free People, but decreased 8.9% at Urban Outfitters for the three months ended October 31, 2024. For the nine months ended October 31, 2024, comparable retail segment net sales increased 9.3% at Free People, 7.5% at Anthropologie, and decreased 10.6% at Urban Outfitters.
Nuuly segment net sales increased by 48.4% for the three months ended October 31, 2024, and by 53.9% for the nine months ended October 31, 2024, primarily driven by an increase in average active subscribers.
The gross profit rate for the three months ended October 31, 2024, increased by 105 basis points compared to the same period in 2023, with gross profit dollars increasing by 9.4% to $497.3 million. For the nine months ended October 31, 2024, the gross profit rate increased by 80 basis points compared to the same period in 2023, with gross profit dollars increasing by 9.2% to $1.40 billion. As of October 31, 2024, total inventory increased by $72.3 million, or 10.0%, compared to the same period in 2023.
Selling, general and administrative expenses increased by $23.2 million, or 6.7%, for the three months ended October 31, 2024, compared to the same period in 2023, and by $81.8 million, or 8.4%, for the nine months ended October 31, 2024, compared to the same period in 2023.
The company's effective tax rate for the three months ended October 31, 2024, was 24.2%, compared to 24.3% for the same period in 2023. For the nine months ended October 31, 2024, the effective tax rate was 23.6%, compared to 24.5% for the same period in 2023.
During the nine months ended October 31, 2024, the company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of October 31, 2024, 18.0 million common shares were remaining under the program.
In terms of expansion, during the nine months ended October 31, 2024, the company opened 36 new retail locations and closed 11 retail locations.
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands. The market has reacted to these announcements by moving the company's shares 18.8% to a price of $47.7. For more information, read the company's full 8-K submission here.
