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Segment Reporting
 3 Months Ended
Apr. 30, 2024
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 Anthropologie (which includes the Anthropologie and Terrain brands), Free People (which includes the Free People and FP Movement brands), Urban Outfitters and Menus & Venues. 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

Company-owned Retail segment shopping channels are closely 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, 2024. 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

 

 

 

April 30,

 

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

Retail operations

 

$

1,062,685

 

 

$

1,004,101

 

Wholesale operations

 

 

63,252

 

 

 

63,415

 

Nuuly operations

 

 

77,942

 

 

 

51,470

 

Intersegment elimination

 

 

(3,147

)

 

 

(5,312

)

Total net sales

 

$

1,200,732

 

 

$

1,113,674

 

Income from operations

 

 

 

 

 

 

Retail operations

 

$

87,887

 

 

$

83,230

 

Wholesale operations

 

 

11,308

 

 

 

6,659

 

Nuuly operations

 

 

(1,226

)

 

 

(271

)

Intersegment elimination

 

 

(52

)

 

 

(346

)

Total segment operating income

 

 

97,917

 

 

 

89,272

 

General corporate expenses

 

 

(23,293

)

 

 

(17,889

)

Total income from operations

 

$

74,624

 

 

$

71,383

 

 

 

 

 

April 30,

 

 

January 31,

 

 

April 30,

 

 

 

2024

 

 

2024

 

 

2023

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

531,653

 

 

$

505,271

 

 

$

543,968

 

Wholesale operations

 

 

47,337

 

 

 

44,971

 

 

 

46,358

 

Total inventory

 

$

578,990

 

 

$

550,242

 

 

$

590,326

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Nuuly operations

 

$

184,311

 

 

$

163,119

 

 

$

100,642

 

Total rental product, net

 

$

184,311

 

 

$

163,119

 

 

$

100,642

 

 

(1)
Rental product, net is included in "Other assets" in the Condensed Consolidated Balance Sheets.

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,179,050

 

 

$

1,182,084

 

 

$

1,145,834

 

Wholesale operations

 

 

2,413

 

 

 

2,355

 

 

 

888

 

Nuuly operations

 

 

123,085

 

 

 

102,102

 

 

 

54,784

 

Total property and equipment, net

 

$

1,304,548

 

 

$

1,286,541

 

 

$

1,201,506

 

 

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

 

 

Three Months Ended

 

 

 

April 30,

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

742,955

 

 

 

70

%

 

$

685,085

 

 

 

68

%

Home

 

 

142,099

 

 

 

13

%

 

 

150,224

 

 

 

15

%

Accessories

 

 

129,264

 

 

 

12

%

 

 

121,711

 

 

 

12

%

Other

 

 

48,367

 

 

 

5

%

 

 

47,081

 

 

 

5

%

Retail operations

 

 

1,062,685

 

 

 

100

%

 

 

1,004,101

 

 

 

100

%

Apparel

 

 

56,541

 

 

 

94

%

 

 

52,621

 

 

 

91

%

Accessories

 

 

3,348

 

 

 

6

%

 

 

5,321

 

 

 

9

%

Other

 

 

216

 

 

 

0

%

 

 

161

 

 

 

0

%

Wholesale operations (1)

 

 

60,105

 

 

 

100

%

 

 

58,103

 

 

 

100

%

Nuuly operations

 

 

77,942

 

 

 

 

 

 

51,470

 

 

 

 

Total net sales

 

$

1,200,732

 

 

 

 

 

$

1,113,674

 

 

 

 

 

(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:

 

 

April 30,

 

 

January 31,

 

 

April 30,

 

 

 

2024

 

 

2024

 

 

2023

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,153,245

 

 

$

1,130,332

 

 

$

1,045,656

 

Foreign operations

 

 

151,303

 

 

 

156,209

 

 

 

155,850

 

Total property and equipment, net

 

$

1,304,548

 

 

$

1,286,541

 

 

$

1,201,506

 

 

 

 

Three Months Ended

 

 

 

April 30,

 

 

 

2024

 

 

2023

 

Net Sales

 

 

 

 

 

 

Domestic operations

 

$

1,058,923

 

 

$

979,606

 

Foreign operations

 

 

141,809

 

 

 

134,068

 

Total net sales

 

$

1,200,732

 

 

$

1,113,674