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Segment Reporting
 9 Months Ended
Oct. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting

12. 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 “Nuuly.”

The Company’s Retail segment includes the Anthropologie, Free People, FP Movement and Urban Outfitters 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 includes 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 Nuuly segment includes the Nuuly brand, which offers customers a more sustainable way to explore fashion through a monthly women’s apparel subscription rental service.

The Company evaluates the performance of each segment based on the net sales and 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 Nuuly 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, 2023. 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

 

 

Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,145,766

 

 

$

1,067,531

 

 

$

3,309,956

 

 

$

3,126,157

 

Wholesale operations

 

 

74,257

 

 

 

80,223

 

 

 

198,440

 

 

 

211,194

 

Nuuly operations

 

 

65,516

 

 

 

35,279

 

 

 

172,779

 

 

 

86,904

 

Intersegment elimination

 

 

(4,365

)

 

 

(7,684

)

 

 

(14,132

)

 

 

(13,584

)

Total net sales

 

$

1,281,174

 

 

$

1,175,349

 

 

$

3,667,043

 

 

$

3,410,671

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

111,731

 

 

$

64,427

 

 

$

338,995

 

 

$

216,260

 

Wholesale operations

 

 

14,525

 

 

 

12,782

 

 

 

27,910

 

 

 

30,021

 

Nuuly operations

 

 

280

 

 

 

(3,228

)

 

 

(2,430

)

 

 

(9,358

)

Intersegment elimination

 

 

54

 

 

 

547

 

 

 

(358

)

 

 

1,137

 

Total segment operating income

 

 

126,590

 

 

 

74,528

 

 

 

364,117

 

 

 

238,060

 

General corporate expenses

 

 

(17,612

)

 

 

(17,210

)

 

 

(51,658

)

 

 

(48,687

)

Total income from operations

 

$

108,978

 

 

$

57,318

 

 

$

312,459

 

 

$

189,373

 

 

 

 

 

October 31,

 

 

January 31,

 

 

October 31,

 

 

 

2023

 

 

2023

 

 

2022

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

679,757

 

 

$

529,853

 

 

$

682,005

 

Wholesale operations

 

 

41,254

 

 

 

57,657

 

 

 

61,574

 

Total inventory

 

$

721,011

 

 

$

587,510

 

 

$

743,579

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Nuuly operations

 

$

140,749

 

 

$

90,934

 

 

$

76,449

 

Total rental product, net

 

$

140,749

 

 

$

90,934

 

 

$

76,449

 

 

(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

 

$

1,182,197

 

 

$

1,138,487

 

 

$

1,133,561

 

Wholesale operations

 

 

1,694

 

 

 

990

 

 

 

1,073

 

Nuuly operations

 

 

88,761

 

 

 

48,258

 

 

 

40,446

 

Total property and equipment, net

 

$

1,272,652

 

 

$

1,187,735

 

 

$

1,175,080

 

 

 

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

 

 

Three Months Ended

 

 

 

October 31,

 

 

2023

 

 

2022

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

771,166

 

 

 

67

%

 

$

688,630

 

 

 

64

%

Home

 

 

173,062

 

 

 

15

%

 

 

192,384

 

 

 

18

%

Accessories

 

 

148,338

 

 

 

13

%

 

 

135,784

 

 

 

13

%

Other

 

 

53,200

 

 

 

5

%

 

 

50,733

 

 

 

5

%

Retail operations

 

 

1,145,766

 

 

 

100

%

 

 

1,067,531

 

 

 

100

%

Apparel

 

 

61,324

 

 

 

88

%

 

 

65,713

 

 

 

91

%

Accessories

 

 

8,331

 

 

 

12

%

 

 

6,603

 

 

 

9

%

Other

 

 

237

 

 

 

0

%

 

 

223

 

 

 

0

%

Wholesale operations (1)

 

 

69,892

 

 

 

100

%

 

 

72,539

 

 

 

100

%

Nuuly operations

 

 

65,516

 

 

 

 

 

 

35,279

 

 

 

 

Total net sales

 

$

1,281,174

 

 

 

 

 

$

1,175,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

October 31,

 

 

2023

 

 

2022

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

2,253,486

 

 

 

68

%

 

$

2,049,571

 

 

 

66

%

Home

 

 

492,689

 

 

 

15

%

 

 

548,292

 

 

 

17

%

Accessories

 

 

408,977

 

 

 

12

%

 

 

383,409

 

 

 

12

%

Other

 

 

154,804

 

 

 

5

%

 

 

144,885

 

 

 

5

%

Retail operations

 

 

3,309,956

 

 

 

100

%

 

 

3,126,157

 

 

 

100

%

Apparel

 

 

166,381

 

 

 

90

%

 

 

179,440

 

 

 

91

%

Accessories

 

 

16,350

 

 

 

9

%

 

 

17,577

 

 

 

9

%

Other

 

 

1,577

 

 

 

1

%

 

 

593

 

 

 

0

%

Wholesale operations (1)

 

 

184,308

 

 

 

100

%

 

 

197,610

 

 

 

100

%

Nuuly operations

 

 

172,779

 

 

 

 

 

 

86,904

 

 

 

 

Total net sales

 

$

3,667,043

 

 

 

 

 

$

3,410,671

 

 

 

 

 

(1)
Net of intersegment elimination.

The Apparel category includes intimates and activewear. The Home category includes home furnishings, electronics, gifts and decorative items. The Accessories category includes footwear, jewelry and handbags. The Other category includes beauty and shipping and handling.

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:

 

 

October 31,

 

 

January 31,

 

 

October 31,

 

 

 

2023

 

 

2023

 

 

2022

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,123,317

 

 

$

1,033,926

 

 

$

1,024,693

 

Foreign operations

 

 

149,335

 

 

 

153,809

 

 

 

150,387

 

Total property and equipment, net

 

$

1,272,652

 

 

$

1,187,735

 

 

$

1,175,080

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,121,033

 

 

$

1,023,420

 

 

$

3,205,038

 

 

$

2,959,302

 

Foreign operations

 

 

160,141

 

 

 

151,929

 

 

 

462,005

 

 

 

451,369

 

Total net sales

 

$

1,281,174

 

 

$

1,175,349

 

 

$

3,667,043

 

 

$

3,410,671