Urban Outfitters Q2 Sales Up 11.3% to $1.5bln, Net Income at $143.9mln

• Urban Outfitters reports record Q2 sales of $1.50 bln • Net income hits $143.9 mln, earnings per diluted share $1.58 • Total Company sales up 11.3% YoY • Nuuly subscription service drives sales growth • Digital data drives sales increase for the company • Free People, Anthropologie, and FP Movement also report sales growth

Urban Outfitters (URBN) has reported strong financial results for Q2 2026, with record sales and net income growth. The company's total revenue reached $1.5 billion, an 11.3% increase year-over-year (YoY), while net income surged 22% to $143.9 million. The earnings per diluted share (EPS) also improved to $1.58, reflecting the company's robust performance across all segments.

The subscription segment, led by the Nuuly rental service, drove significant sales growth, contributing to 53% revenue growth. The retail segment, which accounted for the majority of revenue at $1.29 billion, also saw strong performance, while the wholesale segment grew by 18%. The company's omnichannel strategy and expansion of recurring revenue streams through subscription models have been key drivers of this growth.

CEO Richard A. Hayne highlighted the resurgence of the Urban brand in North America and the company's ability to navigate tariff challenges through sourcing diversification and pricing strategies. The company expects high single-digit sales growth in Q3 and plans to open 69 new stores, primarily in the FP Movement, Free People, and Anthropologie brands.

Despite the positive earnings report, the stock price of Urban Outfitters underperformed in the post-earnings period, falling by 15.58% over the past 30 days. This underperformance contrasts with the company's record margins and 100-basis-point full-year gross margin improvement guidance.

Urban Outfitters' results underscore its ability to leverage its omnichannel strategy and expand its recurring revenue streams through subscription models. The company's strategic execution across all brands and segments has reaffirmed its growth trajectory and guided expectations for the remainder of the year.

References:
[1] https://www.ainvest.com/news/urban-outfitters-2026-q2-earnings-record-net-income-surges-22-2508/
[2] https://www.tradingview.com/news/stockstory:79bb00f55094b:0-urbn-q2-deep-dive-subscription-and-owned-brands-drive-growth-amid-tariff-uncertainty/