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Segment Reporting
 9 Months Ended
Oct. 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 primarily 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

 

 

Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,182,557

 

 

$

1,145,766

 

 

$

3,441,698

 

 

$

3,309,956

 

Nuuly operations

 

 

97,232

 

 

 

65,516

 

 

 

265,870

 

 

 

172,779

 

Wholesale operations

 

 

85,496

 

 

 

74,257

 

 

 

215,517

 

 

 

198,440

 

Intersegment elimination

 

 

(3,430

)

 

 

(4,365

)

 

 

(8,539

)

 

 

(14,132

)

Total net sales

 

$

1,361,855

 

 

$

1,281,174

 

 

$

3,914,546

 

 

$

3,667,043

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations

 

$

119,071

 

 

$

111,731

 

 

$

346,157

 

 

$

338,995

 

Nuuly operations

 

 

4,051

 

 

 

280

 

 

 

8,145

 

 

 

(2,430

)

Wholesale operations

 

 

20,235

 

 

 

14,525

 

 

 

44,987

 

 

 

27,910

 

Intersegment elimination

 

 

153

 

 

 

54

 

 

 

95

 

 

 

(358

)

Total segment operating income

 

 

143,510

 

 

 

126,590

 

 

 

399,384

 

 

 

364,117

 

General corporate expenses

 

 

(14,819

)

 

 

(17,612

)

 

 

(50,934

)

 

 

(51,658

)

Total income from operations

 

$

128,691

 

 

$

108,978

 

 

$

348,450

 

 

$

312,459

 

 

 

 

October 31,

 

 

January 31,

 

 

October 31,

 

 

 

2024

 

 

2024

 

 

2023

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

734,930

 

 

$

505,271

 

 

$

679,757

 

Wholesale operations

 

 

58,394

 

 

 

44,971

 

 

 

41,254

 

Total inventory

 

$

793,324

 

 

$

550,242

 

 

$

721,011

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Nuuly operations

 

$

210,315

 

 

$

163,119

 

 

$

140,749

 

Total rental product, net

 

$

210,315

 

 

$

163,119

 

 

$

140,749

 

 

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

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,191,499

 

 

$

1,182,084

 

 

$

1,182,197

 

Nuuly operations

 

 

129,902

 

 

 

102,102

 

 

 

88,761

 

Wholesale operations

 

 

3,144

 

 

 

2,355

 

 

 

1,694

 

Total property and equipment, net

 

$

1,324,545

 

 

$

1,286,541

 

 

$

1,272,652

 

 

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,

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

797,709

 

 

 

67

%

 

$

771,166

 

 

 

67

%

Home

 

 

169,001

 

 

 

14

%

 

 

173,062

 

 

 

15

%

Accessories

 

 

161,851

 

 

 

14

%

 

 

148,338

 

 

 

13

%

Other

 

 

53,996

 

 

 

5

%

 

 

53,200

 

 

 

5

%

Retail operations

 

 

1,182,557

 

 

 

100

%

 

 

1,145,766

 

 

 

100

%

Nuuly operations

 

 

97,232

 

 

 

 

 

 

65,516

 

 

 

 

Apparel

 

 

76,072

 

 

 

93

%

 

 

61,324

 

 

 

88

%

Accessories

 

 

5,656

 

 

 

7

%

 

 

8,331

 

 

 

12

%

Other

 

 

338

 

 

 

0

%

 

 

237

 

 

 

0

%

Wholesale operations (1)

 

 

82,066

 

 

 

100

%

 

 

69,892

 

 

 

100

%

Total net sales

 

$

1,361,855

 

 

 

 

 

$

1,281,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

October 31,

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

2,373,092

 

 

 

69

%

 

$

2,253,486

 

 

 

68

%

Home

 

 

473,358

 

 

 

13

%

 

 

492,689

 

 

 

15

%

Accessories

 

 

439,960

 

 

 

13

%

 

 

408,977

 

 

 

12

%

Other

 

 

155,288

 

 

 

5

%

 

 

154,804

 

 

 

5

%

Retail operations

 

 

3,441,698

 

 

 

100

%

 

 

3,309,956

 

 

 

100

%

Nuuly operations

 

 

265,870

 

 

 

 

 

 

172,779

 

 

 

 

Apparel

 

 

193,115

 

 

 

93

%

 

 

166,381

 

 

 

90

%

Accessories

 

 

13,046

 

 

 

6

%

 

 

16,350

 

 

 

9

%

Other

 

 

817

 

 

 

1

%

 

 

1,577

 

 

 

1

%

Wholesale operations (1)

 

 

206,978

 

 

 

100

%

 

 

184,308

 

 

 

100

%

Total net sales

 

$

3,914,546

 

 

 

 

 

$

3,667,043

 

 

 

 

 

(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,

 

 

 

2024

 

 

2024

 

 

2023

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,175,015

 

 

$

1,130,332

 

 

$

1,123,317

 

Foreign operations

 

 

149,530

 

 

 

156,209

 

 

 

149,335

 

Total property and equipment, net

 

$

1,324,545

 

 

$

1,286,541

 

 

$

1,272,652

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,191,418

 

 

$

1,121,033

 

 

$

3,425,791

 

 

$

3,205,038

 

Foreign operations

 

 

170,437

 

 

 

160,141

 

 

 

488,755

 

 

 

462,005

 

Total net sales

 

$

1,361,855

 

 

$

1,281,174

 

 

$

3,914,546

 

 

$

3,667,043