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Urban Outfitters Inc. (URBN+3.50%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports net sales of $1.36 billion for the third quarter of fiscal 2025, an increase from $1.28 billion in the same quarter of the previous year. The increase was driven by growth in the Retail, Nuuly, and Wholesale segments.
Retail segment net sales rose by 3.2%, with comparable net sales increasing at Anthropologie and Free People, offset by a decrease at Urban Outfitters. Nuuly segment net sales increased by 48.4%, attributed to a 51.2% rise in the average number of active subscribers.
Wholesale segment net sales increased by 17.4%, primarily due to a rise in Free People wholesale net sales. Gross profit for the quarter increased to $497.3 million, with a gross profit rate of 36.5%, up from 35.5% in the previous year.
Selling, general, and administrative expenses increased by 6.7% to $368.6 million, primarily due to increased marketing expenses and store payroll. Income from operations was $128.7 million, representing 9.4% of net sales.
For the nine months ended October 31, 2024, net sales were $3.91 billion, up from $3.67 billion in the prior year. The increase was driven by growth across all segments, with the Retail segment contributing 87.9% of total net sales.
The company's effective tax rate for the third quarter was 24.2%, slightly down from 24.3% in the same quarter of the previous year. The decrease was attributed to the favorable impact of equity awards.
Urban Outfitters plans to open approximately 58 new stores in fiscal 2025, with capital expenditures expected to be around $210 million, primarily to support new store openings and fulfillment center expansions.
As of October 31, 2024, the company reported cash, cash equivalents, and marketable securities totaling $763.2 million, with a working capital of $511.8 million.
The filing also details the company's share repurchase activities, with a total cost of $52.3 million for the nine months ended October 31, 2024, under its share repurchase program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Urban Outfitters Inc. quarterly 10-Q report dated December 10, 2024. To report an error, please email earnings@qz.com.