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Segment Reporting
 6 Months Ended
Jul. 31, 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,” “Nuuly” and “Wholesale.”

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 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’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 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

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,196,456

 

 

$

1,160,089

 

 

$

2,259,141

 

 

$

2,164,190

 

Nuuly operations

 

 

90,696

 

 

 

55,793

 

 

 

168,638

 

 

 

107,263

 

Wholesale operations

 

 

66,769

 

 

 

60,768

 

 

 

130,021

 

 

 

124,183

 

Intersegment elimination

 

 

(1,962

)

 

 

(4,455

)

 

 

(5,109

)

 

 

(9,767

)

Total net sales

 

$

1,351,959

 

 

$

1,272,195

 

 

$

2,552,691

 

 

$

2,385,869

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

139,199

 

 

$

144,034

 

 

$

227,086

 

 

$

227,264

 

Nuuly operations

 

 

5,320

 

 

 

(2,439

)

 

 

4,094

 

 

 

(2,710

)

Wholesale operations

 

 

13,444

 

 

 

6,726

 

 

 

24,752

 

 

 

13,385

 

Intersegment elimination

 

 

(6

)

 

 

(66

)

 

 

(58

)

 

 

(412

)

Total segment operating income

 

 

157,957

 

 

 

148,255

 

 

 

255,874

 

 

 

237,527

 

General corporate expenses

 

 

(12,822

)

 

 

(16,157

)

 

 

(36,115

)

 

 

(34,046

)

Total income from operations

 

$

145,135

 

 

$

132,098

 

 

$

219,759

 

 

$

203,481

 

 

 

 

July 31,

 

 

January 31,

 

 

July 31,

 

 

 

2024

 

 

2024

 

 

2023

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

552,345

 

 

$

505,271

 

 

$

535,940

 

Wholesale operations

 

 

52,322

 

 

 

44,971

 

 

 

50,574

 

Total inventory

 

$

604,667

 

 

$

550,242

 

 

$

586,514

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Nuuly operations

 

$

193,115

 

 

$

163,119

 

 

$

119,079

 

Total rental product, net

 

$

193,115

 

 

$

163,119

 

 

$

119,079

 

 

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

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,185,279

 

 

$

1,182,084

 

 

$

1,153,705

 

Nuuly operations

 

 

126,544

 

 

 

102,102

 

 

 

67,757

 

Wholesale operations

 

 

3,100

 

 

 

2,355

 

 

 

881

 

Total property and equipment, net

 

$

1,314,923

 

 

$

1,286,541

 

 

$

1,222,343

 

 

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

 

 

Three Months Ended

 

 

 

July 31,

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

832,428

 

 

 

70

%

 

$

797,235

 

 

 

69

%

Home

 

 

162,258

 

 

 

14

%

 

 

169,403

 

 

 

14

%

Accessories

 

 

148,845

 

 

 

12

%

 

 

138,928

 

 

 

12

%

Other

 

 

52,925

 

 

 

4

%

 

 

54,523

 

 

 

5

%

Retail operations

 

 

1,196,456

 

 

 

100

%

 

 

1,160,089

 

 

 

100

%

Nuuly operations

 

 

90,696

 

 

 

 

 

 

55,793

 

 

 

 

Apparel

 

 

60,502

 

 

 

94

%

 

 

52,436

 

 

 

93

%

Accessories

 

 

4,042

 

 

 

6

%

 

 

2,698

 

 

 

5

%

Other

 

 

263

 

 

 

0

%

 

 

1,179

 

 

 

2

%

Wholesale operations (1)

 

 

64,807

 

 

 

100

%

 

 

56,313

 

 

 

100

%

Total net sales

 

$

1,351,959

 

 

 

 

 

$

1,272,195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

July 31,

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

1,575,383

 

 

 

70

%

 

$

1,482,320

 

 

 

68

%

Home

 

 

304,357

 

 

 

13

%

 

 

319,627

 

 

 

15

%

Accessories

 

 

278,109

 

 

 

12

%

 

 

260,639

 

 

 

12

%

Other

 

 

101,292

 

 

 

5

%

 

 

101,604

 

 

 

5

%

Retail operations

 

 

2,259,141

 

 

 

100

%

 

 

2,164,190

 

 

 

100

%

Nuuly operations

 

 

168,638

 

 

 

 

 

 

107,263

 

 

 

 

Apparel

 

 

117,043

 

 

 

94

%

 

 

105,057

 

 

 

92

%

Accessories

 

 

7,390

 

 

 

6

%

 

 

8,019

 

 

 

7

%

Other

 

 

479

 

 

 

0

%

 

 

1,340

 

 

 

1

%

Wholesale operations (1)

 

 

124,912

 

 

 

100

%

 

 

114,416

 

 

 

100

%

Total net sales

 

$

2,552,691

 

 

 

 

 

$

2,385,869

 

 

 

 

 

(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:

 

 

July 31,

 

 

January 31,

 

 

July 31,

 

 

 

2024

 

 

2024

 

 

2023

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,162,995

 

 

$

1,130,332

 

 

$

1,064,868

 

Foreign operations

 

 

151,928

 

 

 

156,209

 

 

 

157,475

 

Total property and equipment, net

 

$

1,314,923

 

 

$

1,286,541

 

 

$

1,222,343

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,175,450

 

 

$

1,104,399

 

 

$

2,234,373

 

 

$

2,084,005

 

Foreign operations

 

 

176,509

 

 

 

167,796

 

 

 

318,318

 

 

 

301,864

 

Total net sales

 

$

1,351,959

 

 

$

1,272,195

 

 

$

2,552,691

 

 

$

2,385,869