Urban Outfitters Reports Q2 Sales Beat Estimates with Strong Retail Performance

Urban Outfitters has reported Q2 sales that beat estimates, driven by growth in its Retail segment, which includes its Urban Outfitters, Anthropologie, and Free People brands. The company's Wholesale segment, which sells to department and specialty stores, also saw growth. Nuuly, its subscription rental service, contributed to the increase in sales.

Urban Outfitters, Inc. (NASDAQ:URBN) has announced strong financial results for the second quarter of 2025, with record net income and sales growth across its Retail, Subscription, and Wholesale segments. The company reported net income of $143.9 million and earnings per diluted share of $1.58 for the three months ended July 31, 2025, compared to $139.3 million and $1.52 for the same period in 2024 [1].

Total Company net sales increased by 11.3% to $1.50 billion, driven by a 7.8% increase in the Retail segment, which includes Urban Outfitters, Anthropologie, and Free People brands. Comparable Retail segment net sales increased by 5.6%, with mid single-digit growth in both retail store sales and digital channel sales. Free People saw a 6.7% increase, Anthropologie a 5.7%, and Urban Outfitters a 4.2% increase in comparable net sales [1].

The Subscription segment, which includes Nuuly, contributed significantly to the growth with a 53.2% increase in net sales, primarily driven by a 48.1% increase in average active subscribers. The Wholesale segment also performed well, with a 18.1% increase in net sales, primarily due to a 19.5% increase in Free People wholesale sales [1].

For the six months ended July 31, 2025, Urban Outfitters reported total Company net sales of $2.83 billion, an 11.0% increase from the same period in 2024. The Retail segment contributed to this growth with a 7.1% increase in comparable net sales, while the Subscription segment saw a 56.1% increase and the Wholesale segment a 21.0% increase [1].

Richard A. Hayne, CEO of Urban Outfitters, stated, "We are proud to announce record revenues, profits, and earnings per share for the quarter. Our success was broad-based, with all five brands achieving positive comparable sales across all geographies. We saw exceptional performance across all of our segments – Retail, Subscription, and Wholesale – and believe these results reflect the strength of our brands, the effectiveness of our strategy, and the talent of our teams. We are confident in our continued momentum" [1].

Urban Outfitters also reported a 14.8% increase in gross profit dollars to $566.2 million, driven by improved Retail segment markdowns and leverage in occupancy costs. Selling, general, and administrative expenses increased by 12.5% to $234.8 million, primarily due to increased marketing expenses and sales in the Retail and Subscription segments [1].

The company's effective tax rate for the three months ended July 31, 2025, was 21.5%, compared to 23.0% for the same period in 2024. Net income for the six months ended July 31, 2025, was a record $252.2 million, with earnings per diluted share of $2.73 [1].

Urban Outfitters opened 27 new retail locations, including 19 Free People stores, 4 Anthropologie stores, and 4 Urban Outfitters stores, and closed 4 locations during the second quarter [1].

References:
[1] https://investor.urbn.com/news-releases/news-release-details/urbn-reports-record-q2-sales-and-income