XML 37 R27.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Reporting
 12 Months Ended
Jan. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

17. Segment Reporting

The Company offers lifestyle-oriented general merchandise and products and services through a portfolio of global consumer brands. The Company operates three reportable segments—“Retail,” “Subscription” 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. As of January 31, 2025, there were 255 Urban Outfitters stores, 239 Anthropologie stores, 230 Free People stores (including 63 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 88.2%, 90.8% and 92.1% of total consolidated net sales for fiscal 2025, 2024 and 2023, 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 closely 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 Subscription segment, formerly known as the Nuuly segment, includes the Nuuly brand, which is primarily 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 rental product. Net sales from the Subscription segment accounted for approximately 6.8%, 4.6%, and 2.7% of total consolidated net sales for fiscal 2025, 2024 and 2023, respectively.

The Company's Wholesale segment includes the Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, third-party digital businesses and the Company's 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 5.0%, 4.6% and 5.2% of total consolidated net sales for fiscal 2025, 2024 and 2023, respectively.

The Company's chief operating decision maker is the chief executive officer. The chief operating decision maker evaluates the performance of each segment based on the regularly reviewed net sales, gross profit and income from operations (excluding intercompany charges) of the segment. The chief operating decision maker uses net sales, gross profit and income from operations when evaluating each segment during the budget and forecasting processes. The chief operating decision maker considers actual-to-budget variances for both profit measures when assessing segment performance and making decisions about the allocation of operating and capital resources to each segment. General 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 Subscription 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 Ended January 31, 2025:

 

Retail Operations

 

 

Subscription Operations

 

 

Wholesale Operations

 

 

Total Company

 

Net sales(1)

 

$

4,896,694

 

 

$

378,394

 

 

$

275,578

 

 

$

5,550,666

 

Cost of sales (excluding store impairment and lease abandonment charges)(2)

 

 

3,152,805

 

 

 

280,666

 

 

 

185,924

 

 

 

3,619,395

 

Store impairment and lease abandonment charges

 

 

4,601

 

 

 

—

 

 

 

—

 

 

 

4,601

 

Segment gross profit

 

 

1,739,288

 

 

 

97,728

 

 

 

89,654

 

 

 

1,926,670

 

Segment selling, general and administrative expenses

 

 

1,264,058

 

 

 

84,425

 

 

 

34,705

 

 

 

1,383,188

 

Segment income from operations

 

$

475,230

 

 

$

13,303

 

 

$

54,949

 

 

$

543,482

 

Less general corporate expenses(3)

 

 

 

 

 

 

 

 

 

 

 

69,718

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

473,764

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

37,064

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(6,069

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

(4,587

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

500,172

 

 

Fiscal Year Ended January 31, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

Net sales(1)

 

$

4,678,698

 

 

$

235,859

 

 

$

238,680

 

 

$

5,153,237

 

Cost of sales (excluding store impairment and lease abandonment charges)(2)

 

 

3,061,487

 

 

 

187,891

 

 

 

176,579

 

 

 

3,425,957

 

Store impairment and lease abandonment charges

 

 

11,875

 

 

 

—

 

 

 

—

 

 

 

11,875

 

Segment gross profit

 

 

1,605,336

 

 

 

47,968

 

 

 

62,101

 

 

 

1,715,405

 

Segment selling, general and administrative expenses

 

 

1,183,324

 

 

 

58,648

 

 

 

30,704

 

 

 

1,272,676

 

Asset impairment

 

 

—

 

 

 

6,404

 

 

 

—

 

 

 

6,404

 

Segment income (loss) from operations

 

$

422,012

 

 

$

(17,084

)

 

$

31,397

 

 

$

436,325

 

Less general corporate expenses(3)

 

 

 

 

 

 

 

 

 

 

 

66,530

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

369,795

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

23,631

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(7,662

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

(4,157

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

381,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended January 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

Net sales(1)

 

$

4,415,358

 

 

$

129,637

 

 

$

250,249

 

 

$

4,795,244

 

Cost of sales (excluding store impairment)(2)

 

 

3,065,053

 

 

 

101,259

 

 

 

195,299

 

 

 

3,361,611

 

Store impairment

 

 

6,417

 

 

 

—

 

 

 

—

 

 

 

6,417

 

Segment gross profit

 

 

1,343,888

 

 

 

28,378

 

 

 

54,950

 

 

 

1,427,216

 

Segment selling, general and administrative expenses

 

 

1,068,519

 

 

 

42,309

 

 

 

27,818

 

 

 

1,138,646

 

Segment income (loss) from operations

 

$

275,369

 

 

$

(13,931

)

 

$

27,132

 

 

$

288,570

 

Less general corporate expenses(3)

 

 

 

 

 

 

 

 

 

 

 

61,947

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

226,623

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

2,041

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(1,315

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

(6,070

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

221,279

 

 

(1)
Eliminated from Wholesale segment net sales were intercompany sales of $11,463, $15,934 and $18,303 for fiscal 2025, 2024 and 2023, respectively.
(2)
Eliminated from Wholesale segment cost of sales were intercompany charges of $11,589, $15,612 and $19,642 for fiscal 2025, 2024 and 2023, respectively.
(3)
General corporate expenses include expenses incurred and directed by the home office that are not allocated to segments.

 

 

Fiscal Year

 

 

2025

 

 

2024

 

 

2023

 

Depreciation expense for property and equipment

 

 

 

 

 

 

 

 

 

Retail operations

 

$

110,095

 

 

$

99,780

 

 

$

91,879

 

Subscription operations

 

 

12,754

 

 

 

6,716

 

 

 

5,402

 

Wholesale operations

 

 

348

 

 

 

329

 

 

 

546

 

Total depreciation expense for property and equipment

 

$

123,197

 

 

$

106,825

 

 

$

97,827

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

556,522

 

 

$

505,271

 

 

 

 

Wholesale operations

 

 

64,624

 

 

 

44,971

 

 

 

 

Total inventory

 

$

621,146

 

 

$

550,242

 

 

 

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Subscription operations

 

$

216,126

 

 

$

163,119

 

 

 

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

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,197,157

 

 

$

1,182,084

 

 

 

 

Subscription operations

 

 

130,715

 

 

 

102,102

 

 

 

 

Wholesale operations

 

 

3,205

 

 

 

2,355

 

 

 

 

Total property and equipment, net

 

$

1,331,077

 

 

$

1,286,541

 

 

 

 

Cash paid for property and equipment

 

 

 

 

 

 

 

 

 

Retail operations

 

$

139,902

 

 

$

131,254

 

 

$

176,110

 

Subscription operations

 

 

40,925

 

 

 

66,964

 

 

 

23,327

 

Wholesale operations

 

 

1,754

 

 

 

1,407

 

 

 

76

 

Total cash paid for property and equipment

 

$

182,581

 

 

$

199,625

 

 

$

199,513

 

 

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

 

 

 

Fiscal Year

 

 

2025

 

 

2024

 

 

2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

3,239,947

 

 

 

66

%

 

$

3,079,496

 

 

 

66

%

 

$

2,808,638

 

 

 

63

%

Home

 

 

762,129

 

 

 

16

%

 

 

763,713

 

 

 

16

%

 

 

830,199

 

 

 

19

%

Accessories

 

 

662,107

 

 

 

13

%

 

 

603,495

 

 

 

13

%

 

 

559,524

 

 

 

13

%

Other

 

 

232,511

 

 

 

5

%

 

 

231,994

 

 

 

5

%

 

 

216,997

 

 

 

5

%

Retail operations

 

 

4,896,694

 

 

 

100

%

 

 

4,678,698

 

 

 

100

%

 

 

4,415,358

 

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription operations

 

 

378,394

 

 

 

 

 

 

235,859

 

 

 

 

 

 

129,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

 

259,302

 

 

 

94

%

 

 

219,231

 

 

 

92

%

 

 

229,282

 

 

 

92

%

Accessories

 

 

14,727

 

 

 

5

%

 

 

17,671

 

 

 

7

%

 

 

20,238

 

 

 

8

%

Other

 

 

1,549

 

 

 

1

%

 

 

1,778

 

 

 

1

%

 

 

729

 

 

 

0

%

Wholesale operations

 

 

275,578

 

 

 

100

%

 

 

238,680

 

 

 

100

%

 

 

250,249

 

 

 

100

%

Total net sales

 

$

5,550,666

 

 

 

 

 

$

5,153,237

 

 

 

 

 

$

4,795,244

 

 

 

 

 

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

 

 

2025

 

 

2024

 

 

2023

 

Net Sales

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

4,866,286

 

 

$

4,506,805

 

 

$

4,158,753

 

Foreign operations

 

 

684,380

 

 

 

646,432

 

 

 

636,491

 

Total net sales

 

$

5,550,666

 

 

$

5,153,237

 

 

$

4,795,244

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,188,769

 

 

$

1,130,332

 

 

 

 

Foreign operations

 

 

142,308

 

 

 

156,209

 

 

 

 

Total property and equipment, net

 

$

1,331,077

 

 

$

1,286,541