Urban Outfitters Q2 2026 Earnings Call Highlights

Urban Outfitters reported Q2 2026 earnings, with CEO Richard A. Hayne discussing the company's financial and operating results. The conference call included remarks from various executives and analysts, covering topics such as the company's performance, growth strategies, and market trends.

Urban Outfitters, Inc. (NASDAQ:URBN) reported its second quarter fiscal 2026 earnings, with CEO Richard A. Hayne highlighting the company's robust financial and operating performance. The earnings call, held on August 27, 2025, featured remarks from various executives and analysts, providing insights into the company's growth strategies and market trends.

Key highlights of the Q2 2026 earnings include:
- Total sales grew by 11%, reaching a new quarterly record of $1.5 billion.
- Net income increased by 22%, setting a new Q2 record of $144 million or $1.58 per diluted share.
- All brands within the Retail segment delivered positive retail segment comps, with four brands posting record second quarter sales.
- Nuuly, Urban Outfitters' subscription-based service, achieved its most profitable quarter ever, with a 53% increase in revenue and a 48% increase in average active subscribers.
- The Wholesale segment delivered an 18% increase in revenue, driven by growth in all channels of distribution.
- Gross profit increased by 15%, reaching a record $566 million, with a gross profit rate improving by 113 basis points to 37.6%.

The conference call also covered the company's brand performance:
- Anthropologie reported a 6% increase in the Retail segment comp, driven by strong performance across all product categories and the successful launch of its in-house Maeve label.
- Free People delivered a 14% increase in total revenue and double-digit operating income growth, with a 7% retail segment comp and a 19% increase in Wholesale segment revenues.
- The Nuuly business continued to outperform expectations, achieving its most profitable quarter ever and contributing significantly to total URBN sales growth.

Looking ahead, the company expects the Anthropologie Group to deliver a mid-single-digit positive Retail segment comp in Q3, while the Free People Retail segment is expected to deliver a mid-single-digit positive comp in the same period. The wholesale channel is anticipated to deliver mid-single-digit growth in the third quarter.

The earnings call provided a comprehensive overview of Urban Outfitters' strong Q2 performance, setting the stage for continued growth in the second half of the year.

References:
[1] https://seekingalpha.com/article/4817304-urban-outfitters-inc-urbn-q2-2026-earnings-call-transcript