Urbn reports record revenue

Gross profit increased 9.4% year on year to $497.3m (£390.6m) while total net sales for the quarter increased 6.3% to a record $1.36bn (£1.06bn).

Net sales increased 5.8% at Anthropologie and 5.3% at Free People, however sales decreased by 8.9% at Urban Outfitters.

Wholesale segment net sales increased 17.4% driven by a 20.3% increase in Free People wholesale sales. Urbn said this was due “to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales”.

CEO Richard A. Hayne said: “We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – retail, subscription and wholesale.

“Additionally, we're optimistic about the outlook for holiday demand and believe total comparable sales could be similar to our third quarter results.”