URBN Reports Record FY26 Q4 Sales and Operating Results

(NASDAQ:URBN),

PHILADELPHIA, Feb. 25, 2026 (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 net income of $96.3 million and earnings per diluted share of $1.05 for the three months ended January 31, 2026. For the three months ended January 31, 2026 and 2025, adjusted net income was $130.5 million and $98.1 million, respectively, and adjusted earnings per diluted share were $1.43 and $1.04, respectively. For the year ended January 31, 2026, net income was $464.9 million and earnings per diluted share were $5.06. For the years ended January 31, 2026 and 2025, adjusted net income was $499.2 million and $380.3 million, respectively, and adjusted earnings per diluted share were $5.44 and $4.03, respectively.

Adjusted net income and earnings per diluted share for the three months and year ended January 31, 2026, excludes a charitable contribution to a donor-advised fund. Adjusted net income and earnings per diluted share for the three months and year ended January 31, 2025, excludes a release of income tax reserves. See “Reconciliation of Non-GAAP Financial Measures” included at the end of this release.

Total Company net sales for the three months ended January 31, 2026, increased 10.1% to a record $1.80 billion. Total Retail segment net sales increased 7.7%, with comparable Retail segment net sales increasing 5.5%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both digital channel sales and retail store sales. Comparable Retail segment net sales increased 9.6% at Urban Outfitters, 5.2% at Free People and 3.7% at Anthropologie. Subscription segment net sales increased 42.6% primarily driven by a 40.3% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 9.1% driven by a 10.2% increase in Free People wholesale sales due to an increase in sales to specialty customers.

For the year ended January 31, 2026, total Company net sales increased 11.1% to a record $6.17 billion. Total Retail segment net sales increased 7.9%, with comparable Retail segment net sales increasing 6.0%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both digital channel sales and retail store sales. Comparable Retail segment net sales increased 7.3% at Urban Outfitters, 5.9% at Anthropologie and 4.8% at Free People. Subscription segment net sales increased 50.2% primarily driven by a 45.3% increase in average active subscribers in the current year versus the prior year period. Wholesale segment net sales increased 14.0% driven by a 15.2% increase in Free People wholesale sales due to an increase in sales to specialty customers.

“We are pleased to report record sales and operating profits for the quarter, driven by strong results across all three segments – Retail, Subscription, and Wholesale,” said Richard A. Hayne, Chief Executive Officer. “Our Nuuly apparel rental business continues to enjoy exceptional momentum with double-digit subscriber and revenue growth,” finished Mr. Hayne.

Net sales by brand and segment for the three and twelve-month periods were as follows:

	Three Months Ended								Twelve Months Ended
	January 31,								January 31,
	2026				2025				2026				2025
Net sales by brand
Anthropologie	$	774,898			$	743,030			$	2,586,611			$	2,426,438
Free People		451,023				410,618				1,618,421				1,460,295
Urban Outfitters		405,105				360,192				1,351,629				1,247,742
Nuuly		160,503				112,524				568,418				378,394
Menus & Venues		10,241				9,756				40,297				37,797
Total Company	$	1,801,770			$	1,636,120			$	6,165,376			$	5,550,666
Net sales by segment
Retail Segment	$	1,566,443			$	1,454,996			$	5,282,676			$	4,896,694
Subscription Segment		160,503				112,524				568,418				378,394
Wholesale Segment		74,824				68,600				314,282				275,578
Total Company	$	1,801,770			$	1,636,120			$	6,165,376			$	5,550,666

For the three months ended January 31, 2026, the gross profit rate increased by 101 basis points compared to the three months ended January 31, 2025, and gross profit dollars increased 13.6% to a record $599.2 million from $527.7 million. For the year ended January 31, 2026, the gross profit rate increased by 126 basis points compared to the year ended January 31, 2025, and gross profit dollars increased 15.1% to a record $2.22 billion from $1.93 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, a leverage in store occupancy costs due to the increase in comparable Retail segment net sales and leverage in delivery expense due to a reduction in packages per order, 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 year ended January 31, 2026, the Company recorded store impairment charges of $2.0 million and during the year ended January 31, 2025, the Company recorded store impairment and lease abandonment charges of $4.6 million.

As of January 31, 2026, total inventory increased by $79.8 million, or 12.8%, compared to total inventory as of January 31, 2025. Total Retail segment inventory increased 13.4% and comparable Retail segment inventory increased 5.3%. Wholesale segment inventory increased 8.5%. The increase in inventory for both segments was due to the increase in sales and timing of inventory receipts.

For the three months ended January 31, 2026, selling, general and administrative expenses increased by $38.1 million, or 9.5%, compared to the three months ended January 31, 2025. Selling, general and administrative expenses leveraged 14 basis points as a percentage of net sales compared to the three months ended January 31, 2025. For the year ended January 31, 2026, selling, general and administrative expenses increased by $159.2 million, or 11.0%, compared to the year ended January 31, 2025. Selling, general and administrative expenses leveraged 2 basis points as a percentage of net sales compared to the year ended January 31, 2025. The leverage in selling, general and administrative expenses as a percentage of net sales for both periods was primarily related to a 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.

During the three months and year ended January 31, 2026, the Company made a $46.0 million charitable contribution to a donor-advised fund, which is included in “Other (expense) income, net.”

The Company's effective tax rate for the three months ended January 31, 2026, was 21.9%, compared to 8.1% in the three months ended January 31, 2025. The Company's effective tax rate for the year ended January 31, 2026, was 22.1%, compared to 19.5% in the year ended January 31, 2025. The increase in the effective tax rate for the three months and year ended January 31, 2026, was primarily due to the non-recurrence of a significant tax reserve release recorded in the prior year. The adjusted effective tax rate for the three months ended January 31, 2026, was 22.9%, compared to 25.0% for the three months ended January 31, 2025. The Company's adjusted effective tax rate for the year ended January 31, 2026, was 22.4%, compared to 24.0% in the year ended January 31, 2025.

Net income for the three months ended January 31, 2026, was $96.3 million and earnings per diluted share were $1.05. Adjusted net income for the three months ended January 31, 2026, was $130.5 million and adjusted earnings per diluted share were $1.43. Net income for the year ended January 31, 2026, was $464.9 million and earnings per diluted share were $5.06. Adjusted net income for the year ended January 31, 2026, was $499.2 million and adjusted earnings per diluted share were $5.44.

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 year ended January 31, 2026, the Company repurchased and subsequently retired 3.3 million shares for approximately $154 million. During the year ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of January 31, 2026, 14.6 million common shares were remaining under the program.

Store data for the year ended January 31, 2026, was as follows:

		January 31,												January 31,
		2025				Openings				Closings				2026
Anthropologie NA			222				13				1				234
Anthropologie EU			17				3				—				20
Total Anthropologie			239				16				1				254
Free People NA			156				15				4				167
FP Movement NA			63				25				—				88
Free People EU			11				3				1				13
Total Free People			230				43				5				268
Urban Outfitters NA			187				1				11				177
Urban Outfitters EU			68				9				1				76
Total Urban Outfitters			255				10				12				253
Menus & Venues			9				—				—				9
Total Company-Owned Stores			733				69				18				784
Franchisee-Owned Stores(1)			9				—				—				9
Total URBN			742				69				18				793

(1) Includes 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores

Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of Anthropologie stores in the United States, Canada and Europe, catalogs and websites; Free People stores (including FP Movement stores) in the United States, Canada and Europe, catalogs and websites; Urban Outfitters stores in the United States, Canada and Europe and websites; Menus & Venues restaurants; and Urban Outfitters franchisee-owned stores and Anthropologie franchisee-owned stores in the Middle East. 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 fourth quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/w33kc9av/.

As used in this document, unless otherwise defined, “Anthropologie” refers to the Company's Anthropologie, Terrain and Maeve 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, 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, 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, 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								Twelve Months Ended
	January 31,								January 31,
	2026				2025				2026				2025
Net sales	$	1,801,770			$	1,636,120			$	6,165,376			$	5,550,666
Cost of sales (excluding store impairment and lease abandonment charges)		1,202,569				1,108,439				3,945,634				3,619,395
Store impairment and lease abandonment charges		—				—				1,989				4,601
Gross profit		599,201				527,681				2,217,753				1,926,670
Selling, general and administrative expenses		440,500				402,367				1,612,119				1,452,906
Income from operations		158,701				125,314				605,634				473,764
Other (expense) income, net		(35,395	)			5,592				(8,737	)			26,408
Income before income taxes		123,306				130,906				596,897				500,172
Income tax expense		27,039				10,605				131,978				97,710
Net income	$	96,267			$	120,301			$	464,919			$	402,462
Net income per common share:
Basic	$	1.07			$	1.30			$	5.15			$	4.34
Diluted	$	1.05			$	1.28			$	5.06			$	4.26
Weighted-average common shares outstanding:
Basic		89,691,297				92,279,466				90,191,801				92,684,127
Diluted		91,352,364				94,259,134				91,808,357				94,448,046
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)		66.7	%			67.7	%			64.0	%			65.2	%
Store impairment and lease abandonment charges		—				—				0.0	%			0.1	%
Gross profit		33.3	%			32.3	%			36.0	%			34.7	%
Selling, general and administrative expenses		24.5	%			24.6	%			26.2	%			26.2	%
Income from operations		8.8	%			7.7	%			9.8	%			8.5	%
Other (expense) income, net		(2.0	%)			0.3	%			(0.1	%)			0.5	%
Income before income taxes		6.8	%			8.0	%			9.7	%			9.0	%
Income tax expense		1.5	%			0.6	%			2.2	%			1.7	%
Net income		5.3	%			7.4	%			7.5	%			7.3	%

URBAN OUTFITTERS, INC. Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited)
	January 31,				January 31,
	2026				2025
ASSETS
Current assets:
Cash and cash equivalents	$	369,206			$	290,481
Marketable securities		326,724				319,949
Accounts receivable, net of allowance for doubtful accounts of $1,209 and $1,384, respectively		95,668				74,014
Inventory		700,945				621,146
Prepaid expenses and other current assets		193,561				187,206
Total current assets		1,686,104				1,492,796
Property and equipment, net		1,466,236				1,331,077
Operating lease right-of-use assets		1,051,109				942,666
Marketable securities		461,858				410,208
Other assets		342,306				342,733
Total Assets	$	5,007,613			$	4,519,480
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	327,903			$	295,767
Current portion of operating lease liabilities		225,478				227,149
Accrued expenses, accrued compensation and other current liabilities		564,713				552,763
Total current liabilities		1,118,094				1,075,679
Non-current portion of operating lease liabilities		1,000,088				871,209
Other non-current liabilities		74,144				101,088
Total Liabilities		2,192,326				2,047,976
Shareholders' equity:
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued		—				—
Common shares; $.0001 par value, 200,000,000 shares authorized, 89,698,222 and 92,281,748 shares issued and outstanding, respectively	9				9
Additional paid-in-capital		19,912				15,067
Retained earnings		2,817,448				2,503,068
Accumulated other comprehensive loss		(22,082	)			(46,640	)
Total Shareholders' Equity		2,815,287				2,471,504
Total Liabilities and Shareholders' Equity	$	5,007,613			$	4,519,480

URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited)
		Twelve Months Ended
		January 31,
		2026				2025
Cash flows from operating activities:
Net income		$	464,919			$	402,462
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			128,529				115,425
Non-cash lease expense			216,348				214,605
Provision (benefit) for deferred income taxes			12,896				(2,966	)
Share-based compensation expense			30,408				31,039
Amortization of tax credit investment			17,029				17,224
Store impairment and lease abandonment charges			1,989				4,601
Loss on disposition of property and equipment, net			555				1,641
Changes in assets and liabilities:
Receivables			(19,506	)			(7,319	)
Inventory			(72,755	)			(72,945	)
Prepaid expenses and other assets			(2,667	)			(17,471	)
Payables, accrued expenses and other liabilities			42,999				59,690
Operating lease liabilities			(245,554	)			(243,152	)
Net cash provided by operating activities			575,190				502,834
Cash flows from investing activities:
Cash paid for property and equipment			(260,168	)			(182,581	)
Cash paid for marketable securities			(565,365	)			(542,944	)
Sales and maturities of marketable securities			513,881				416,756
Net cash used in investing activities			(311,652	)			(308,769	)
Cash flows from financing activities:
Proceeds from the exercise of stock options			928				851
Share repurchases related to share repurchase program			(153,946	)			(52,262	)
Share repurchases related to taxes for share-based awards			(21,954	)			(15,402	)
Tax credit investment liability payments			(16,397	)			(10,301	)
Net cash used in financing activities			(191,369	)			(77,114	)
Effect of exchange rate changes on cash and cash equivalents			6,556				(4,791	)
Increase in cash and cash equivalents			78,725				112,160
Cash and cash equivalents at beginning of period			290,481				178,321
Cash and cash equivalents at end of period		$	369,206			$	290,481

Important Information Regarding Non-GAAP Financial Measures

In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include a charitable contribution to a donor-advised fund and a release of income tax reserves. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures for fiscal 2026 and 2025 that exclude the impact of these non-core business items.

We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company's financial position, results of operations or cash flows and should therefore be considered in assessing the Company's actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.

URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)
Reconciliation of Total Company Adjusted Income Tax Expense and Adjusted Effective Tax Rate:
	Three Months Ended
	January 31,
	2026					2025
	$'s					$'s
Income before income taxes (GAAP)	$	123,306				$	130,906
Adjustments:
Charitable contribution (a)		46,000					—
Adjusted income before income taxes (Non-GAAP)	$	169,306				$	130,906
Income tax expense (GAAP)	$	27,039				$	10,605
Adjustments:
Provision for income taxes on adjustments (b)		11,750					—
Release of income tax reserves (c)		—					22,172
Adjusted income tax expense (Non-GAAP)	$	38,789				$	32,777
Effective income tax rate (GAAP)		21.9	%				8.1	%
Adjustments		1.0				16.9
Adjusted effective income tax rate (Non-GAAP)		22.9	%				25.0	%
	Twelve Months Ended
	January 31,
	2026					2025
	$'s					$'s
Income before income taxes (GAAP)	$	596,897				$	500,172
Adjustments:
Charitable contribution (a)		46,000					—
Adjusted income before income taxes (Non-GAAP)	$	642,897				$	500,172
Income tax expense (GAAP)	$	131,978				$	97,710
Adjustments:
Provision for income taxes on adjustments (b)		11,750					—
Release of income tax reserves (c)		—					22,172
Adjusted income tax expense (Non-GAAP)	$	143,728				$	119,882
Effective income tax rate (GAAP)		22.1	%				19.5	%
Adjustments	0.3						4.5
Adjusted effective income tax rate (Non-GAAP)		22.4	%				24.0	%

URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)
Reconciliation of Total Company Adjusted Net Income and Adjusted Diluted EPS:
	Three Months Ended
	January 31,
	2026							2025
	$'s			% of Net Sales				$'s			% of Net Sales
Net income (GAAP)	$	96,267			5.3	%		$	120,301			7.4	%
Adjustments:
Charitable contribution (a)		46,000							—
Provision for income taxes on adjustments (b)		(11,750	)						—
Release of income tax reserves (c)		—							(22,172	)
Adjusted net income (Non-GAAP)	$	130,517			7.2	%		$	98,129			6.0	%
Diluted EPS (GAAP)	$	1.05						$	1.28
Adjustments, net of tax		0.38							(0.24	)
Adjusted diluted EPS (Non-GAAP)	$	1.43						$	1.04
	Twelve Months Ended
	January 31,
	2026							2025
	$'s			% of Net Sales				$'s			% of Net Sales
Net income (GAAP)	$	464,919			7.5	%		$	402,462			7.3	%
Adjustments:
Charitable contribution (a)		46,000							—
Provision for income taxes on adjustments (b)		(11,750	)						—
Release of income tax reserves (c)		—							(22,172	)
Adjusted net income (Non-GAAP)	$	499,169			8.1	%		$	380,290			6.9	%
Diluted EPS (GAAP)	$	5.06						$	4.26
Adjustments, net of tax		0.38							(0.23	)
Adjusted diluted EPS (Non-GAAP)	$	5.44						$	4.03
(a) During the three months and year ended January 31, 2026, the Company made a charitable contribution to a donor-advised fund.
(b) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustment.
(c) During the three months and year ended January 31, 2025, the Company recorded a one-time tax benefit for the release of a portion of our income tax reserves as a result of a lapse of the statute of limitations for federal tax purposes.

Contact:		Oona McCullough
		Executive Director of Investor Relations
		(215) 454-4806