**Urban Outfitters Posts Record Second Quarter Sales despite Inflationary Concerns**
Urban Outfitters Inc. (URBN) reported record second-quarter sales on Wednesday, boosted by strong demand for its apparel and home goods offerings. The company’s results surpassed analysts’ expectations and defied concerns about the impact of inflation on consumer spending.
**Key Financial Highlights:**
* Net sales increased by 10.4% to $1.26 billion, exceeding the consensus estimate of $1.23 billion.
* Comparable sales grew by 6.3%, driven by a 7.9% increase in the digital channel.
* Diluted earnings per share reached $1.27, beating the analyst consensus of $1.14.
* Gross margin improved by 50 basis points to 37.5%.
**Performance by Brand:**
* Urban Outfitters brand sales increased by 7.8%, with comparable sales growth of 5.1%.
* Anthropologie brand sales rose by 12.8%, driven by an 8.1% increase in comparable sales.
* Free People brand sales surged by 19.5%, with comparable sales growth of 13.4%.
* Nuuly, the company’s rental subscription service, continued to perform well, with revenue increasing by 25%.
**Management Commentary:**
Richard Hayne, CEO of Urban Outfitters, expressed optimism about the company’s future prospects despite ongoing inflationary pressures.
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