Why did URBN's Q3 2025 EPS exceed forecasts?

Urban Outfitters' Q3 2025 EPS exceeded forecasts due to several key factors:

1. **Strong Sales Growth**: The company reported a 6% increase in total sales, reaching $1.4 billion. This overall growth was driven by robust performance across all segments.
2. **Segmental Performance**:
- The Retail Segment showed a 2% increase in comp sales.
- Nuuly, the subscription segment, experienced a significant 48% revenue growth, reaching $97 million. This surge was attributed to a 51.3% increase in average active subscribers.
- The Wholesale Segment saw a 17% revenue growth.
3. **Gross Profit Improvement**: Gross profit increased by 9% to $497 million, with the gross profit rate improving by 105 basis points to 36.5%. This indicates better operational efficiency and pricing strategies.
4. **Strategic Initiatives**: Urban Outfitters' focus on omnichannel strategies and digital sales likely contributed to the positive sales momentum. The company's integration of physical stores with online platforms has been a key differentiator in the retail sector.

In summary, Urban Outfitters' Q3 2025 EPS exceeded expectations due to strong sales growth across various segments, improved gross profit, and effective strategic initiatives.