PHILADELPHIA, Nov. 25, 2025 (GLOBE NEWSWIRE) — Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced record net income of $116.4 million and earnings per diluted share of $1.28 for the three months ended October 31, 2025. For the nine months ended October 31, 2025, net income was a record $368.7 million and earnings per diluted share were $4.01.
Total Company net sales for the three months ended October 31, 2025, increased 12.3% to a record $1.53 billion. Total Retail segment net sales increased 9.6%, with comparable Retail segment net sales increasing 8.0%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in both digital channel sales and retail store sales. Comparable Retail segment net sales increased 12.5% at Urban Outfitters, 7.6% at Anthropologie and 4.1% at Free People. Subscription segment net sales increased by 48.7% primarily driven by a 42.2% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 7.6% driven by an 8.4% increase in Free People wholesale sales primarily due to an increase in sales to specialty customers.
For the nine months ended October 31, 2025, total Company net sales increased 11.5% to a record $4.36 billion. Total Retail segment net sales increased 8.0%, with comparable Retail segment net sales increasing 6.1%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both retail store sales and digital channel sales. Comparable Retail segment net sales increased 6.8% at Anthropologie, 6.4% at Urban Outfitters and 4.7% at Free People. Subscription segment net sales increased by 53.4% primarily driven by a 47.3% increase in average active subscribers in the current period versus the prior year period. Wholesale segment net sales increased 15.7% driven by a 16.8% increase in Free People wholesale sales primarily due to an increase in sales to specialty customers.
“We are pleased to report record revenues, profits, and earnings per share for the quarter,” said Richard A. Hayne, Chief Executive Officer. “Trends observed last quarter have remained consistent with broad-based comparable sales growth and robust results in the Retail, Subscription, and Wholesale segments. These results underscore the strength of our diversified business model, which enables us to continue capturing market share, and drive consistent long-term growth,” finished Mr. Hayne.
Net sales by brand and segment for the three and nine-month periods were as follows:
Three Months Ended
Nine Months Ended
October 31,
October 31,
2025
2024
2025
2024
Net sales by brand
Anthropologie
$
634,828
$
587,923
$
1,811,713
$
1,683,408
Free People
399,272
365,857
1,167,398
1,049,677
Urban Outfitters
339,848
300,577
946,524
887,550
Nuuly
144,629
97,232
407,915
265,870
Menus & Venues
10,773
10,266
30,056
28,041
Total Company
$
1,529,350
$
1,361,855
$
4,363,606
$
3,914,546
Net sales by segment
Retail Segment
$
1,296,454
$
1,182,557
$
3,716,233
$
3,441,698
Subscription Segment
144,629
97,232
407,915
265,870
Wholesale Segment
88,267
82,066
239,458
206,978
Total Company
$
1,529,350
$
1,361,855
$
4,363,606
$
3,914,546
For the three months ended October 31, 2025, the gross profit rate increased by 31 basis points compared to the three months ended October 31, 2024, and gross profit dollars increased 13.3% to $563.3 million from $497.3 million. For the nine months ended October 31, 2025, the gross profit rate increased by 135 basis points compared to the nine months ended October 31, 2024, and gross profit dollars increased 15.7% to $1.62 billion from $1.40 billion. The increase in gross profit rate for both periods was primarily due to improved Retail segment markdowns driven by lower markdowns at Urban Outfitters and Free People and leverage in store occupancy costs due to the increase in comparable Retail segment net sales, partially offset by deleverage in initial merchandise costs. The increase in gross profit dollars for both periods was due to higher net sales and the improved gross profit rate. Additionally, during the three and nine months ended October 31, 2025, the Company recorded store impairment charges of $2.0 million, and during the nine months ended October 31, 2024, the Company recorded store impairment and lease abandonment charges of $4.6 million.
As of October 31, 2025, total inventory increased by $46.5 million, or 5.9%, compared to total inventory as of October 31, 2024. Total Retail segment inventory increased by 6.3% and comparable Retail segment inventory increased by 7.4%. Wholesale segment inventory was flat. The increase in Retail segment inventory was due to increased sales.
For the three months ended October 31, 2025, selling, general and administrative expenses increased by $50.4 million, or 13.7%, compared to the three months ended October 31, 2024. Selling, general and administrative expenses deleveraged 32 basis points as a percentage of net sales compared to the three months ended October 31, 2024. For the nine months ended October 31, 2025, selling, general and administrative expenses increased by $121.1 million, or 11.5%, compared to the nine months ended October 31, 2024. Selling, general and administrative expenses were essentially flat as a percentage of net sales compared to the nine months ended October 31, 2024. The deleverage in selling, general and administrative expenses as a percentage of net sales for the three months ended October 31, 2025, was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, partially offset by leverage in store payroll expenses due to the Retail segment stores net sales growth. The dollar growth in selling, general and administrative expenses for both periods was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth.
The Company's effective tax rate for the three months ended October 31, 2025, was 23.6%, compared to 24.2% in the three months ended October 31, 2024. The Company's effective tax rate for the nine months ended October 31, 2025, was 22.2%, compared to 23.6% in the nine months ended October 31, 2024. The decrease in the effective tax rate for the three and nine months ended October 31, 2025, was primarily attributable to the ratio of foreign taxable earnings to global taxable earnings and the release of certain valuation allowances.
Net income for the three months ended October 31, 2025, was a record $116.4 million and earnings per diluted share were $1.28. Net income for the nine months ended October 31, 2025, was a record $368.7 million and earnings per diluted share were $4.01.
On June 4, 2019, the Company's Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. During the nine months ended October 31, 2025, the Company repurchased and subsequently retired 3.3 million shares for approximately $152 million. During the twelve months ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of October 31, 2025, 14.7 million common shares were remaining under the program.
During the nine months ended October 31, 2025, the Company opened a total of 41 new retail locations including: 25 Free People stores (including 13 FP Movement stores), 9 Anthropologie stores and 7 Urban Outfitters stores; and closed 6 retail locations including: 4 Urban Outfitters stores and 2 Free People stores.
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 258 Urban Outfitters stores in the United States, Canada and Europe and websites; 253 Free People stores (including 76 FP Movement stores) in the United States, Canada and Europe, catalogs and websites; 248 Anthropologie stores in the United States, Canada and Europe, catalogs and websites; 9 Menus & Venues restaurants; 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores as of October 31, 2025. Free People, FP Movement and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company's Retail segment. Nuuly is primarily a women's apparel subscription rental service which offers a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces.
A conference call will be held today to discuss third quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/m53ogmpi/.
As used in this document, unless otherwise defined, “Anthropologie” refers to the Company's Anthropologie and Terrain brands and “Free People” refers to the Company's Free People and FP Movement brands.
This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, including geopolitical instability, impacts of the conflict in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises (such as the coronavirus (COVID-19)), labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, our effective utilization of technological advancements, including in artificial intelligence, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs such as retaliatory tariffs, border adjustment taxes or increases in duties or quotas, the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.
(Tables follow)
URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Income (amounts in thousands, except share and per share data) (unaudited)
Three Months Ended
Nine Months Ended
October 31,
October 31,
2025
2024
2025
2024
Net sales
$
1,529,350
$
1,361,855
$
4,363,606
$
3,914,546
Cost of sales (excluding store impairment and lease abandonment charges)
964,034
864,536
2,743,065
2,510,956
Store impairment and lease abandonment charges
1,989
—
1,989
4,601
Gross profit
563,327
497,319
1,618,552
1,398,989
Selling, general and administrative expenses
419,008
368,628
1,171,619
1,050,539
Income from operations
144,319
128,691
446,933
348,450
Other income, net
8,126
7,141
26,658
20,816
Income before income taxes
152,445
135,832
473,591
369,266
Income tax expense
36,005
32,921
104,939
87,105
Net income
$
116,440
$
102,911
$
368,652
$
282,161
Net income per common share:
Basic
$
1.30
$
1.12
$
4.08
$
3.04
Diluted
$
1.28
$
1.10
$
4.01
$
2.99
Weighted-average common shares outstanding:
Basic
89,706,922
92,270,583
90,360,467
92,819,987
Diluted
91,288,124
93,857,850
91,962,187
94,511,989
AS A PERCENTAGE OF NET SALES
Net sales
100.0
%
100.0
%
100.0
%
100.0
%
Cost of sales (excluding store impairment and lease abandonment charges)
63.1
%
63.5
%
62.9
%
64.2
%
Store impairment and lease abandonment charges
0.1
%
—
0.0
%
0.1
%
Gross profit
36.8
%
36.5
%
37.1
%
35.7
%
Selling, general and administrative expenses
27.4
%
27.1
%
26.9
%
26.8
%
Income from operations
9.4
%
9.4
%
10.2
%
8.9
%
Other income, net
0.6
%
0.6
%
0.7
%
0.5
%
Income before income taxes
10.0
%
10.0
%
10.9
%
9.4
%
Income tax expense
2.4
%
2.4
%
2.5
%
2.2
%
Net income
7.6
%
7.6
%
8.4
%
7.2
%
URBAN OUTFITTERS, INC. Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited)
October 31,
January 31,
October 31,
2025
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
306,600
$
290,481
$
182,516
Marketable securities
305,133
319,949
340,445
Accounts receivable, net of allowance for doubtful accounts of $976, $1,384 and $1,423, respectively
95,990
74,014
96,977
Inventory
839,793
621,146
793,324
Prepaid expenses and other current assets
210,480
187,206
224,070
Total current assets
1,757,996
1,492,796
1,637,332
Property and equipment, net
1,429,403
1,331,077
1,324,545
Operating lease right-of-use assets
1,017,499
942,666
947,150
Marketable securities
351,843
410,208
240,237
Other assets
350,281
342,733
336,519
Total Assets
$
4,907,022
$
4,519,480
$
4,485,783
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
381,752
$
295,767
$
363,187
Current portion of operating lease liabilities
223,867
227,149
228,443
Accrued expenses, accrued compensation and other current liabilities
559,458
552,763
533,915
Total current liabilities
1,165,077
1,075,679
1,125,545
Non-current portion of operating lease liabilities
960,222
871,209
879,362
Other non-current liabilities
77,611
101,088
127,953
Total Liabilities
2,202,910
2,047,976
2,132,860
Shareholders' equity:
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued
—
—
—
Common shares; $.0001 par value, 200,000,000 shares authorized, 89,712,460, 92,281,748 and 92,275,849 shares issued and outstanding, respectively
9
9
9
Additional paid-in-capital
14,411
15,067
7,529
Retained earnings
2,721,181
2,503,068
2,382,767
Accumulated other comprehensive loss
(31,489
)
(46,640
)
(37,382
)
Total Shareholders' Equity
2,704,112
2,471,504
2,352,923
Total Liabilities and Shareholders' Equity
$
4,907,022
$
4,519,480
$
4,485,783
URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited)
Nine Months Ended
October 31,
2025
2024
Cash flows from operating activities:
Net income
$
368,652
$
282,161
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
94,359
86,031
Non-cash lease expense
160,627
162,466
Provision for deferred income taxes
5,325
3,335
Share-based compensation expense
22,674
23,366
Amortization of tax credit investment
12,880
12,872
Store impairment and lease abandonment charges
1,989
4,601
Loss on disposition of property and equipment, net
419
1,553
Changes in assets and liabilities:
Receivables
(20,385
)
(29,682
)
Inventory
(214,789
)
(242,190
)
Prepaid expenses and other assets
(29,171
)
(52,548
)
Payables, accrued expenses and other liabilities
91,893
113,773
Operating lease liabilities
(182,288
)
(183,376
)
Net cash provided by operating activities
312,185
182,362
Cash flows from investing activities:
Cash paid for property and equipment
(191,447
)
(144,052
)
Cash paid for marketable securities
(304,592
)
(267,276
)
Sales and maturities of marketable securities
382,318
309,178
Net cash used in investing activities
(113,721
)
(102,150
)
Cash flows from financing activities:
Proceeds from the exercise of stock options
928
851
Share repurchases related to share repurchase program
(151,935
)
(52,262
)
Share repurchases related to taxes for share-based awards
(21,738
)
(15,264
)
Tax credit investment liability payments
(12,796
)
(6,220
)
Net cash used in financing activities
(185,541
)
(72,895
)
Effect of exchange rate changes on cash and cash equivalents
