Urban Outfitters (NASDAQ: URBN) is a mid-cap firm in the consumer discretionary sector. In 2024, the company's shares vastly outperformed their sector, with a total return of over 16% before its recent earnings.
The SPDR Consumer Discretionary Select Sector Fund (ARCA:XLY) has returned just under 5%. The company reported fiscal Q2 2025 earnings on Aug 21. I'll provide some background on the firm's operations and then review its earnings report and conference call. I'll close with some outlook of the company.
Urban Outfitters: Traditional Retail Combined with a Market Differentiator
Urban Outfitters operates as three reportable segments: Retail, Wholesale, and Nuuly. The company's retail segment consists of its physical stores and websites through which it directly sells to consumers. Its notable retail store brands are Anthropologie, Free People, and Urban Outfitters.
Anthropologie caters to sophisticated and contemporary women aged 28 to 45, making up 43% of the company's total revenues in 2023. Free People targets contemporary women aged 25 to 30 and makes up 21% of the firm's total revenues.
Urban Outfitters targets young adultsF aged 18 to 28 who are "culturally sophisticated, self-expressive, and actively engaged with their peer group." It made up 26% of the company's total revenues.
The wholesale segment sells Free People and Urban Outfitters clothing to department stores. It makes up 4.6% of total revenues.
The Nuuly segment is ...
