Urban Outfitters, Inc. (NASDAQ:URBN) has reported its fourth-quarter and full-year results for the period ending January 31, 2025. The company announced a record net income of $120.3 million for the fourth quarter, with earnings per diluted share reaching $1.28. For the full year, net income hit a record $402.5 million, with earnings per diluted share at $4.26.
When comparing the three months ended January 31, 2025, and 2024, adjusted net income saw an increase from $65.8 million to $98.1 million, while adjusted earnings per diluted share rose from $0.69 to $1.04. For the years ended January 31, 2025, and 2024, adjusted net income increased from $304.6 million to $383.9 million, and adjusted earnings per diluted share rose from $3.23 to $4.06.
Total company net sales for the three months ended January 31, 2025, increased by 10.1% to a record $1.64 billion. For the year ended January 31, 2025, total company net sales increased by 7.7% to a record $5.55 billion. The retail segment net sales increased by 6.3% for the three months ended January 31, 2025, and by 4.7% for the year ended January 31, 2025. The subscription segment net sales saw a significant increase of 78.4% for the three months ended January 31, 2025, and 60.4% for the year ended January 31, 2025. Additionally, wholesale segment net sales increased by 26.2% for the three months ended January 31, 2025, and 15.5% for the year ended January 31, 2025.
Gross profit rate for the three months ended January 31, 2025, increased by 304 basis points compared to the same period in 2024, with gross profit dollars increasing by 21.5% to $527.7 million. For the year ended January 31, 2025, the gross profit rate increased by 142 basis points compared to the previous year, with gross profit dollars increasing by 12.3% to $1.93 billion. As of January 31, 2025, total inventory increased by $70.9 million, or 12.9%, compared to the previous year.
Selling, general, and administrative expenses for the three months ended January 31, 2025, increased by $31.9 million, or 8.6%, compared to the same period in 2024. For the year ended January 31, 2025, these expenses increased by $113.7 million, or 8.5%, compared to the previous year.
The company’s effective tax rate for the three months ended January 31, 2025, was 8.1%, significantly lower than the 25.4% reported in the same period in 2024. The company's effective tax rate for the year ended January 31, 2025 was 19.5%, compared to 24.6% in the previous year.
Urban Outfitters, Inc. also provided information on its share repurchase program, new retail locations, and its portfolio of brands, including Urban Outfitters, Anthropologie, Free People, FP Movement, and Nuuly.
A conference call to discuss these results will be held today at 5:00 pm ET.
As of January 31, 2025, Urban Outfitters, Inc. operated 255 Urban Outfitters stores, 239 Anthropologie stores, 230 Free People stores (including 63 FP Movement stores), 9 Menus & Venues restaurants, 7 Urban Outfitters franchisee-owned stores, and 2 Anthropologie franchisee-owned stores.
The company's brand Nuuly primarily operates as a women's apparel subscription rental service, offering a wide selection of rental products from the company's own brands, third-party brands, and vintage pieces.
Please note that all information is being reported in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Following these announcements, the company's shares moved 9.4%, and are now trading at a price of $57.88. For the full picture, make sure to review Urban Outfitters's 8-K report.
