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Segment Reporting
 6 Months Ended
Jul. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

13. Segment Reporting

The Company offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands. The Company operates three reportable segments – “Retail,” “Wholesale” and “Subscription.”

The Company’s Retail segment consists of the Anthropologie, Bhldn, Free People, FP Movement, Terrain, Urban Outfitters and Menus & Venues brands. The Company has aggregated its brands into the Retail segment based upon their shared management, customer base and economic characteristics. Reporting in this format provides management with the financial information necessary to evaluate the success of the segments and the overall business. The Company’s Retail segment omni-channel strategy enhances its customers’ brand experience by providing a seamless approach to the customer shopping experience. All available Company-owned Retail segment shopping channels are fully integrated, including retail locations, websites, mobile applications, catalogs and customer contact centers.

The Company’s Wholesale segment consists of the Free People, FP Movement and Urban Outfitters brands. The Wholesale segment sells through department and specialty stores worldwide, digital businesses and the Retail segment.

The Subscription segment consists of the “Nuuly” brand, which is a monthly women’s apparel subscription rental service that launched on July 30, 2019.

The Company evaluates the performance of each segment based on the net sales and pre-tax income from operations (excluding intercompany charges) of the segment. The Company accounts for intersegment sales and transfers as if the sales and transfers were made to third parties making similar volume purchases. Corporate expenses include expenses incurred and directed by the corporate office that are not allocated to segments. The principal identifiable assets for the Retail and Wholesale segments are inventory and property and equipment. The principal identifiable assets for the Subscription segment are rental product and property and equipment.

The accounting policies of the reportable segments are the same as the policies described in Note 2, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2021. All of the Company’s segments are highly diversified. No one customer constitutes more than 10% of the Company’s total consolidated net sales. A summary of the information about the Company’s operations by segment is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,089,022

 

 

$

757,471

 

 

$

1,946,508

 

 

$

1,318,703

 

Wholesale operations

 

 

61,985

 

 

 

49,877

 

 

 

128,563

 

 

 

75,589

 

Subscription operations

 

 

9,939

 

 

 

4,672

 

 

 

17,759

 

 

 

10,942

 

Intersegment elimination

 

 

(3,221

)

 

 

(8,754

)

 

 

(7,690

)

 

 

(13,485

)

Total net sales

 

$

1,157,725

 

 

$

803,266

 

 

$

2,085,140

 

 

$

1,391,749

 

Income (loss) from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

176,829

 

 

$

58,405

 

 

$

250,874

 

 

$

(77,096

)

Wholesale operations

 

 

9,099

 

 

 

14,161

 

 

 

23,279

 

 

 

(31,467

)

Subscription operations

 

 

(3,618

)

 

 

(4,611

)

 

 

(6,900

)

 

 

(10,575

)

Intersegment elimination

 

 

264

 

 

 

(84

)

 

 

345

 

 

 

(494

)

Total segment operating income (loss)

 

 

182,574

 

 

 

67,871

 

 

 

267,598

 

 

 

(119,632

)

General corporate expenses

 

 

(16,721

)

 

 

1,548

 

 

 

(28,242

)

 

 

(9,684

)

Total income (loss) from operations

 

$

165,853

 

 

$

69,419

 

 

$

239,356

 

 

$

(129,316

)

 

 

(1)

General corporate expenses during the three and six months ended July 31, 2020 benefitted from the recognition of COVID-19 related government relief packages in the three months ended July 31, 2020. 

 

 

 

July 31,

 

 

January 31,

 

 

July 31,

 

 

 

2021

 

 

2021

 

 

2020

 

Inventory

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

438,144

 

 

$

348,797

 

 

$

321,885

 

Wholesale operations

 

 

45,004

 

 

 

40,821

 

 

 

29,886

 

Total inventory

 

$

483,148

 

 

$

389,618

 

 

$

351,771

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

 

 

 

Subscription operations

 

$

10,900

 

 

$

11,857

 

 

$

15,764

 

Total rental product, net

 

$

10,900

 

 

$

11,857

 

 

$

15,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Rental product, net is included in “Deferred income taxes and other assets” in the Condensed Consolidated Balance Sheets.

 

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,016,644

 

 

$

938,020

 

 

$

859,188

 

Wholesale operations

 

 

1,762

 

 

 

2,096

 

 

 

2,375

 

Subscription operations

 

 

29,345

 

 

 

27,306

 

 

 

27,563

 

Total property and equipment, net

 

$

1,047,751

 

 

$

967,422

 

 

$

889,126

 

 

 

The following tables summarize net sales and percentage of net sales from contracts with customers by merchandise category:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel (1)

 

$

777,912

 

 

$

507,930

 

 

$

1,385,714

 

 

$

878,277

 

Home (2)

 

 

188,298

 

 

 

156,621

 

 

 

361,684

 

 

 

266,420

 

Accessories (3)

 

 

135,620

 

 

 

89,751

 

 

 

237,274

 

 

 

159,944

 

Other (4)

 

 

55,895

 

 

 

48,964

 

 

 

100,468

 

 

 

87,108

 

Total net sales

 

$

1,157,725

 

 

$

803,266

 

 

$

2,085,140

 

 

$

1,391,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a percentage of net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel (1)

 

 

67

%

 

 

63

%

 

 

67

%

 

 

63

%

Home (2)

 

 

16

%

 

 

19

%

 

 

17

%

 

 

19

%

Accessories (3)

 

 

12

%

 

 

12

%

 

 

11

%

 

 

12

%

Other (4)

 

 

5

%

 

 

6

%

 

 

5

%

 

 

6

%

Total net sales

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)   Apparel includes intimates and activewear

 

(2)   Home includes home furnishings, electronics, gifts and decorative items

 

(3)   Accessories includes footwear, jewelry and handbags

 

(4)   Other includes beauty, shipping and handling, the Menus & Venues brand and the Subscription segment

 

 

Apparel, Home, and Accessories are sold through both the Retail and Wholesale segments. Revenue recognized from the Other category is primarily attributable to the Retail segment.

The Company has foreign operations primarily in Europe and Canada. Revenues and long-lived assets, based upon the Company’s domestic and foreign operations, are as follows:

 

 

 

July 31,

 

 

January 31,

 

 

July 31,

 

 

 

2021

 

 

2021

 

 

2020

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

844,912

 

 

$

768,440

 

 

$

722,934

 

Foreign operations

 

 

202,839

 

 

 

198,982

 

 

 

166,192

 

Total property and equipment, net

 

$

1,047,751

 

 

$

967,422

 

 

$

889,126

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

998,580

 

 

$

709,697

 

 

$

1,825,375

 

 

$

1,233,253

 

Foreign operations

 

 

159,145

 

 

 

93,569

 

 

 

259,765

 

 

 

158,496

 

Total net sales

 

$

1,157,725

 

 

$

803,266

 

 

$

2,085,140

 

 

$

1,391,749