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Segment Reporting
 3 Months Ended
Apr. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

12. 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. 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, social media and third-party platforms, catalogs and customer contact centers.

The Company's Subscription 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, third-party digital businesses and the Company's Retail segment.

The Company's chief operating decision maker is the chief executive officer ("CEO"). The CEO regularly reviews net sales, gross profit and income from operations (excluding intercompany charges) when evaluating the performance of each segment and 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. The CEO uses net sales, gross profit and income from operations when evaluating each segment during the budget and forecasting processes. The Company accounts for intersegment sales and transfers as if the sales and transfers were made to third parties making similar volume purchases. 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.

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, 2025. 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, 2025:

 

Retail Operations

 

 

Subscription Operations

 

 

Wholesale Operations

 

 

Total Company

 

Net sales(1)

 

$

1,130,510

 

 

$

124,354

 

 

$

74,637

 

 

$

1,329,501

 

Cost of sales(2)

 

 

701,759

 

 

 

89,786

 

 

 

48,892

 

 

 

840,437

 

Segment gross profit

 

 

428,751

 

 

 

34,568

 

 

 

25,745

 

 

 

489,064

 

Segment selling, general and administrative expenses

 

 

306,121

 

 

 

27,552

 

 

 

8,712

 

 

 

342,385

 

Segment income from operations

 

$

122,630

 

 

$

7,016

 

 

$

17,033

 

 

$

146,679

 

Less general corporate expenses

 

 

 

 

 

 

 

 

 

 

 

18,452

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

128,227

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

9,646

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

137,873

 

 

Three Months Ended April 30, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

Net sales(1)

 

$

1,062,685

 

 

$

77,942

 

 

$

60,105

 

 

$

1,200,732

 

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

 

 

686,340

 

 

 

60,023

 

 

 

41,383

 

 

 

787,746

 

Store impairment and lease abandonment charges

 

 

4,601

 

 

 

—

 

 

 

—

 

 

 

4,601

 

Segment gross profit

 

 

371,744

 

 

 

17,919

 

 

 

18,722

 

 

 

408,385

 

Segment selling, general and administrative expenses

 

 

283,857

 

 

 

19,145

 

 

 

7,466

 

 

 

310,468

 

Segment income (loss) from operations

 

$

87,887

 

 

$

(1,226

)

 

$

11,256

 

 

$

97,917

 

Less general corporate expenses

 

 

 

 

 

 

 

 

 

 

 

23,293

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

74,624

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

6,246

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

80,870

 
(1)
Eliminated from Wholesale segment net sales were intercompany sales of $2,792 and $3,147 for the three months ended April 30, 2025, and 2024, respectively.
(2)
Eliminated from Wholesale segment cost of sales were intercompany charges of $2,818 and $3,095 for the three months ended April 30, 2025, and 2024, respectively.

 

 

 

April 30,

 

 

January 31,

 

 

April 30,

 

 

 

2025

 

 

2025

 

 

2024

 

Inventory

 

 

 

 

 

 

 

 

 

Retail operations

 

$

601,983

 

 

$

556,522

 

 

$

531,653

 

Wholesale operations

 

 

61,820

 

 

 

64,624

 

 

 

47,337

 

Total inventory

 

$

663,803

 

 

$

621,146

 

 

$

578,990

 

Rental product, net (1)

 

 

 

 

 

 

 

 

 

Subscription operations

 

$

222,448

 

 

$

216,126

 

 

$

184,311

 

 

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

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Retail operations

 

$

1,213,621

 

 

$

1,197,157

 

 

$

1,179,050

 

Subscription operations

 

 

129,805

 

 

 

130,715

 

 

 

123,085

 

Wholesale operations

 

 

3,131

 

 

 

3,205

 

 

 

2,413

 

Total property and equipment, net

 

$

1,346,557

 

 

$

1,331,077

 

 

$

1,304,548

 

 

 

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,

 

 

2025

 

 

2024

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

783,005

 

 

 

69

%

 

$

742,955

 

 

 

70

%

Home

 

 

147,687

 

 

 

13

%

 

 

142,099

 

 

 

13

%

Accessories

 

 

146,689

 

 

 

13

%

 

 

129,264

 

 

 

12

%

Other

 

 

53,129

 

 

 

5

%

 

 

48,367

 

 

 

5

%

Retail operations

 

 

1,130,510

 

 

 

100

%

 

 

1,062,685

 

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription operations

 

 

124,354

 

 

 

 

 

 

77,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

 

67,615

 

 

 

91

%

 

 

56,541

 

 

 

94

%

Accessories

 

 

6,772

 

 

 

9

%

 

 

3,348

 

 

 

6

%

Other

 

 

250

 

 

 

0

%

 

 

216

 

 

 

0

%

Wholesale operations (1)

 

 

74,637

 

 

 

100

%

 

 

60,105

 

 

 

100

%

Total net sales

 

$

1,329,501

 

 

 

 

 

$

1,200,732

 

 

 

 

 

(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 revenue.

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,

 

 

 

2025

 

 

2025

 

 

2024

 

Property and equipment, net

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

1,193,445

 

 

$

1,188,769

 

 

$

1,153,245

 

Foreign operations

 

 

153,112

 

 

 

142,308

 

 

 

151,303

 

Total property and equipment, net

 

$

1,346,557

 

 

$

1,331,077

 

 

$

1,304,548

 

 

 

 

Three Months Ended

 

 

 

April 30,

 

 

 

2025

 

 

2024

 

Net Sales

 

 

 

 

 

 

Domestic operations

 

$

1,172,150

 

 

$

1,058,923

 

Foreign operations

 

 

157,351

 

 

 

141,809

 

Total net sales

 

$

1,329,501

 

 

$

1,200,732