XML 38 R26.htm IDEA: XBRL DOCUMENT v3.24.1
Segment Reporting
 12 Months Ended
Jan. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

17. 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 Anthropologie (which includes the Anthropologie and Terrain brands), Free People (which includes the Free People and FP Movement brands), Urban Outfitters and Menus & Venues. As of January 31, 2024, there were 262 Urban Outfitters stores, 237 Anthropologie stores, 198 Free People stores (including 38 FP Movement stores), 9 Menus & Venues locations, 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores. Each of Urban Outfitters, Anthropologie and Free People, including their Company-owned and franchisee-owned store and digital channels, and Menus & Venues

locations, are considered an operating segment. Net sales from the Retail segment accounted for approximately 90.8%, 92.1% and 93.4% of total consolidated net sales for fiscal 2024, 2023 and 2022, respectively.

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 investments in areas such as marketing campaigns and technology advancements are designed to generate demand for the Retail segment omni-channel and not the separate store or digital channels. The Company manages and analyzes its performance based on a single Retail segment omni-channel rather than separate channels and believes that the Retail segment omni-channel results present the most meaningful and appropriate measure of our performance.

The Company's Wholesale segment includes the Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, digital businesses and our Retail segment. The Wholesale segment primarily designs, develops and markets young women’s contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People and FP Movement brands and the BDG and “iets frans” apparel collections under the Urban Outfitters brand. Net sales from the Wholesale segment accounted for approximately 4.6%, 5.2% and 5.5% of total consolidated net sales for fiscal 2024, 2023 and 2022, respectively.

The Company's Nuuly segment includes the Nuuly brand, which is a monthly women’s apparel subscription rental service. For a monthly fee, Nuuly subscribers can rent product from a wide selection of the Company’s own brands, third-party brands and one-of-a-kind vintage pieces via a custom-built, digital platform. Subscribers select their products each month, wear them as often as they like and then swap into new products the following month. Subscribers are also able to purchase the rented product. Our Nuuly segment net sales accounted for approximately 4.6%, 2.7%, and 1.1% of consolidated net sales for fiscal 2024, 2023 and 2022, respectively.

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. 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.

Other assets are comprised primarily of general corporate assets, which principally consist of cash and cash equivalents, marketable securities, deferred taxes and prepaid expenses, and are typically not allocated to the Company’s segments. The Company accounts for intersegment sales and transfers as if the sales and transfers were made to third parties making similar volume purchases.

The accounting policies of the reportable segments are the same as the policies described in Note 2, “Summary of Significant Accounting Policies.” 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:

 

 

Fiscal Year

 

 

2024

 

 

2023

 

 

2022

 

Net sales

 

 

 

 

 

 

 

 

 

Retail operations

 

$

4,678,698

 

 

$

4,415,358

 

 

$

4,248,681

 

Wholesale operations

 

 

254,614

 

 

 

268,552

 

 

 

267,576

 

Nuuly operations

 

 

235,859

 

 

 

129,637

 

 

 

47,724

 

Intersegment elimination

 

 

(15,934

)

 

 

(18,303

)

 

 

(15,218

)

Total net sales

 

$

5,153,237

 

 

$

4,795,244

 

 

$

4,548,763

 

Income from operations

 

 

 

 

 

 

 

 

 

Retail operations

 

$

422,012

 

 

$

275,369

 

 

$

449,453

 

Wholesale operations

 

 

31,719

 

 

 

25,793

 

 

 

32,937

 

Nuuly operations

 

 

(17,084

)

 

 

(13,931

)

 

 

(20,150

)

Intersegment elimination

 

 

(322

)

 

 

1,339

 

 

 

1,643

 

Total segment operating income

 

 

436,325

 

 

 

288,570

 

 

 

463,883

 

General corporate expenses

 

 

(66,530

)

 

 

(61,947

)

 

 

(55,317

)

Total income from operations

 

$

369,795

 

 

$

226,623

 

 

$

408,566

 

 

 

 

Fiscal Year

 

 

2024

 

 

2023

 

 

2022

 

Depreciation expense for property and equipment

 

 

 

 

 

 

 

 

 

Retail operations

 

$

99,780

 

 

$

91,879

 

 

$

94,099

 

Wholesale operations

 

 

329

 

 

 

546

 

 

 

547

 

Nuuly operations

 

 

6,716

 

 

 

5,402

 

 

 

4,412

 

Total depreciation expense for property and equipment

 

$

106,825

 

 

$

97,827

 

 

$

99,058

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

505,271

 

 

$

529,853

 

 

 

 

Wholesale operations

 

 

44,971

 

 

 

57,657

 

 

 

 

Total inventory

 

$

550,242

 

 

$

587,510

 

 

 

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Nuuly operations

 

$

163,119

 

 

$

90,934

 

 

 

 

Total rental product, net

 

$

163,119

 

 

$

90,934

 

 

 

 

 

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

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,182,084

 

 

$

1,138,487

 

 

 

 

Wholesale operations

 

 

2,355

 

 

 

990

 

 

 

 

Nuuly operations

 

 

102,102

 

 

 

48,258

 

 

 

 

Total property and equipment, net

 

$

1,286,541

 

 

$

1,187,735

 

 

 

 

Cash paid for property and equipment

 

 

 

 

 

 

 

 

 

Retail operations

 

$

131,254

 

 

$

176,110

 

 

$

254,921

 

Wholesale operations

 

 

1,407

 

 

 

76

 

 

 

69

 

Nuuly operations

 

 

66,964

 

 

 

23,327

 

 

 

7,439

 

Total cash paid for property and equipment

 

$

199,625

 

 

$

199,513

 

 

$

262,429

 

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

 

 

 

Fiscal Year

 

 

2024

 

 

2023

 

 

2022

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

3,079,496

 

 

 

66

%

 

$

2,808,638

 

 

 

63

%

 

$

2,671,841

 

 

 

63

%

Home

 

 

763,713

 

 

 

16

%

 

 

830,199

 

 

 

19

%

 

 

852,379

 

 

 

20

%

Accessories

 

 

603,495

 

 

 

13

%

 

 

559,524

 

 

 

13

%

 

 

532,877

 

 

 

12

%

Other

 

 

231,994

 

 

 

5

%

 

 

216,997

 

 

 

5

%

 

 

191,584

 

 

 

5

%

Retail operations

 

 

4,678,698

 

 

 

100

%

 

 

4,415,358

 

 

 

100

%

 

 

4,248,681

 

 

 

100

%

Apparel

 

 

219,231

 

 

 

92

%

 

 

229,282

 

 

 

92

%

 

 

241,060

 

 

 

96

%

Accessories

 

 

17,671

 

 

 

7

%

 

 

20,238

 

 

 

8

%

 

 

10,460

 

 

 

4

%

Other

 

 

1,778

 

 

 

1

%

 

 

729

 

 

 

0

%

 

 

838

 

 

 

0

%

Wholesale operations

 

 

238,680

 

 

 

100

%

 

 

250,249

 

 

 

100

%

 

 

252,358

 

 

 

100

%

Nuuly operations

 

 

235,859

 

 

 

 

 

 

129,637

 

 

 

 

 

 

47,724

 

 

 

 

Total net sales

 

 

5,153,237

 

 

 

 

 

 

4,795,244

 

 

 

 

 

$

4,548,763

 

 

 

 

 

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:

 

 

Fiscal Year

 

 

2024

 

 

2023

 

 

2022

 

Net Sales

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

4,506,805

 

 

$

4,158,753

 

 

$

3,950,381

 

Foreign operations

 

 

646,432

 

 

 

636,491

 

 

 

598,382

 

Total net sales

 

$

5,153,237

 

 

$

4,795,244

 

 

$

4,548,763

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,130,332

 

 

$

1,033,926

 

 

 

 

Foreign operations

 

 

156,209

 

 

 

153,809

 

 

 

 

Total property and equipment, net

 

$

1,286,541

 

 

$

1,187,735