Urban Outfitters Surpasses Expectations with Q2 Revenue of $1.51B, GAAP EPS of $1.58

Urban Outfitters reported Q2 GAAP EPS of $1.58, beating estimates by $0.12. Revenue reached $1.51B, a 11.9% YoY increase and $30M above expectations. The company's comparable Retail segment net sales grew 6.7% at Free People, 5.7% at Anthropologie, and 4.2% at Urban Outfitters. Subscription segment net sales increased by 4.4%.

Urban Outfitters (URBN) reported its Q2 2025 earnings on July 2, 2025, beating Wall Street's expectations with a GAAP EPS of $1.58, up $0.12 from the consensus estimate of $1.46. Revenue reached $1.51 billion, a 11.9% year-over-year increase and $30 million above expectations [1].

The company's comparable Retail segment net sales grew 6.7% at Free People, 5.7% at Anthropologie, and 4.2% at Urban Outfitters. The Subscription segment net sales increased by 4.4%, driven by a 48.1% increase in average active subscribers [2].

Urban Outfitters' strong performance was attributed to strategic inventory discipline, brand expansion, and digital transformation. The company reduced markdowns by hundreds of basis points, with a 14.8% gross profit growth driven by optimized occupancy costs and localized stock management [1]. Brand expansion fueled performance, with Free People growing 13.7% to $415 million, Anthropologie rising 6.7% to $606.95 million, and Nuuly's subscription model achieving 53.2% revenue growth with 9% operating margins [1].

Digital transformation boosted new customer growth through localized platforms, size inclusivity, and community-driven marketing, while European operations saw double-digit comp growth [1]. The company's share repurchase program (3.3 million shares retired for $152 million in six months) and Q3 guidance (mid-single-digit retail growth, mid-double-digit Nuuly growth) position URBN as a resilient retail model with scalable margin potential [1].

Despite beating expectations, shares of Urban Outfitters fell 8.0% in postmarket trading, erasing some gains built up over the last six weeks. The short interest on URBN stands at 12.0% of the total float [2].

References:
[1] https://www.ainvest.com/news/urban-outfitters-q2-2025-earnings-strategic-breakthrough-brand-revitalization-profitability-2508/
[2] https://seekingalpha.com/news/4489720-urban-outfitters-posts-positive-comparable-sales-growth-across-brands