Wholesale segment sales decreased 5.2%, after a 6.5% decrease in Free People Group wholesale sales, due to a drop in sales at department stores, while Urban Outfitters wholesale sales increased by $0.5 million.

Nuuly sales increased by $27 million driven by an 85% increase in subscribers, versus the end of the prior year’s comparable quarter.

The company said net income for the quarter totalled $104.1 million, with earnings per diluted share of $1.10 for the three months.

“We are proud to report record second quarter sales that helped drive a 72% increase in EPS,” said Richard Hayne, chief executive officer. “Also gratifying is that Q2’s sales strength has continued to date in Q3.”

For the six months ended July 31, total company net sales increased 6.7% to a record $2.39 billion, while net income was $156.9 million with earnings per diluted share of $1.67.

The earnings update comes three months after the U.S. fashion and lifestyle giant clocked a record-breaking first-quarter sales of $1.1 billion earlier in the year.