Urban Outfitters, Inc. (NASDAQ:URBN) stock fell 0.89% (As on January 11, 11:13:50 AM UTC-4, Source: Google Finance) after Telsey Advisory Group increased the price target for the company from $42 to $44. Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating.

Further, the company has reported strong 2023 holiday sales. The company behind Anthropologie, Nuuly, and other apparel brands posted record net sales for the two months ended Dec. 31, increasing 10% from the same 2022 period. Total retail segment net sales were up 8%, with comparable retail segment net sales rising 6%. The retailer indicated the jump in comparable sales was driven by “high-single-digit” growth in digital channel sales, and a “low-single-digit” gain in retail store sales. The company also noted that Shea Jensen would be the new president of Urban Outfitters Brand, North America. She previously was head of women’s apparel retailer Good American, which was co-founded in 2016 by British entrepreneur Emma Grede and reality TV star Khloe Kardashian.

In addition, Free People’s comparable Retail segment’s net sales jumped 20% year over year, while Anthropologie enjoyed a 14% increase. However, the Urban Outfitters brand saw a 13% year-over-year decrease in comparable net sales. The Wholesale segment of the company showed a healthy 15% year-over-year increase, largely driven by augmented sales of Free People’s wholesale, especially to department stores and specialty accounts. This rise, however, was slightly offset by a reduction in wholesale sales of Urban Outfitters. The Nuuly segment, a relatively recent addition to the company’s portfolio, marked an extraordinary 71% year-over-year surge in net sales. This surge is largely credited to a significant 58% rise in subscriber numbers from 2022.

Looking at eleven months ended Dec 31, 2023, the company has maintained its upward trajectory with an 8% year-over-year increase in total company net sales. The Retail segment continued to show positive trends, with a 6% increase in net sales and a 5% rise in comparable Retail segment net sales. Again, digital sales and store sales contributed to this growth. However, the Wholesale segment experienced a slight setback with a 4% year-over-year decrease mainly due to reduced Free People wholesale sales to department stores. However, the Nuuly segment saw an impressive 92% surge in net sales, bolstered by a significant 58% increase in subscriber numbers from the end of 2022’s comparable period.