Urban Outfitters 2026 Q3 Earnings Record Net Income Surges 13.1% to $116.44M

Urban Outfitters (URBN) delivered robust Q3 2026 results, exceeding expectations with a 12.3% revenue increase and 16.1% EPS growth. The company raised Q4 guidance, projecting $1.6 billion in revenue and $1.45 EPS, reflecting confidence in holiday demand and inventory optimization.

Revenue

Urban Outfitters' Q3 revenue rose 12.3% to $1.53 billion, driven by strong performance across its business segments. The Retail segment led the charge with $1.30 billion in sales, bolstered by 9.6% growth from new store openings and elevated comparable sales. Subscription services, represented by Nuuly, surged 48.7% to $144.63 million, fueled by a 42.2% rise in active subscribers. Wholesale operations contributed $88.27 million, with Free People’s wholesale sales climbing 8.4% on stronger specialty customer demand.

Earnings/Net Income

Earnings per share (EPS) increased 16.1% to $1.30, with net income reaching $116.44 million—marking a 13.1% year-over-year gain. The company’s profitability strengthened as gross profit rose to $563.3 million (36.8% of sales), driven by improved retail markdowns and occupancy cost leverage. The strong EPS growth underscores Urban Outfitters’ ability to convert revenue expansion into margin improvement.

Price Action

Urban Outfitters’ stock surged 23.68% month-to-date, despite a 0.20% weekly decline.

Post-Earnings Price Action Review

The strategy of buying URBN after earnings beats and holding for 30 days delivered 117.46% returns, outpacing the 86.69% benchmark. While the strategy endured a 47.61% maximum drawdown, its 16.91% CAGR and 0.36 Sharpe ratio highlight favorable risk-adjusted returns over the backtested period.

CEO Commentary

Richard Hayne, CEO of Urban Outfitters, highlighted Q3’s 12.3% revenue growth, driven by product innovation and e-commerce momentum. Challenges included supply chain delays, though strategic investments in digital infrastructure and sustainability are strengthening market positioning. Hayne expressed cautious optimism, emphasizing adaptability to evolving consumer trends and a focus on long-term profitability.

Guidance

Urban Outfitters guided to Q4 revenue of $1.6 billion and EPS of $1.45, reflecting confidence in holiday sales and inventory optimization. Qualitative expectations include navigating macroeconomic pressures while maintaining customer-centric strategies, with continued emphasis on digital engagement and sustainability.

Additional News

Goldman Sachs initiated coverage on URBN with a Neutral rating and $83 price target, citing disciplined execution but cautious macroeconomic risks. Meanwhile, the company’s 10-Q filing revealed 52 new store openings in 9M 2025, with European Retail sales rising to 1.8% of total Retail revenue. Analysts across 12 firms maintain an average “Outperform” rating, with price targets ranging from $53.45 to $98.00.