PHILADELPHIA, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced net income of $240.7 million and earnings per diluted share of $2.78 for the three months ended July 31, 2026. For the six months ended July 31, 2026, net income was $356.4 million and earnings per diluted share were $4.06.
For the three months ended July 31, 2026, adjusted net income was $149.3 million and adjusted earnings per diluted share were $1.72. For the six months ended July 31, 2026, adjusted net income was $265.0 million and adjusted earnings per diluted share were $3.02. Adjusted net income and adjusted earnings per diluted share for the three and six months ended July 31, 2026, excludes one-time benefits related to refunds for tariffs previously paid under the International Emergency Economic Powers Act ("IEEPA"), associated interest income and a tax benefit related to the release of a valuation allowance against certain foreign net deferred tax assets. See “Reconciliation of Non-GAAP Financial Measures” included at the end of this release.
Total Company net sales for the three months ended July 31, 2026, increased 10.4% to a record $1.66 billion. Total Retail segment net sales increased 8.0%, with comparable Retail segment net sales increasing 6.2%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 10.0% at FP Group, 8.4% at Urban Outfitters and 3.0% at Anthropologie. Subscription segment net sales increased 28.6% primarily driven by a 30.4% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 18.6% driven by a 19.2% increase in FP Group wholesale sales due to an increase in sales to specialty customers and department stores.
For the six months ended July 31, 2026, total Company net sales increased 10.9% to a record $3.14 billion. Total Retail segment net sales increased 8.0%, with comparable Retail segment net sales increasing 6.0%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 9.9% at FP Group, 8.8% at Urban Outfitters and 2.5% at Anthropologie. Subscription segment net sales increased 31.4% primarily driven by a 31.8% increase in average active subscribers in the current period versus the prior year period. Wholesale segment net sales increased 21.7% driven by a 22.6% increase in FP Group wholesale sales primarily due to an increase in sales to specialty customers.
“We are pleased to report our highest adjusted profit quarter in Company history, marking our eighth consecutive quarter of record sales and profits. These results were driven by positive Retail segment ‘comps’ at every brand and continued double-digit growth in our Wholesale and Subscription segments,” said Richard A. Hayne, Chief Executive Officer. “Our customers continue to respond favorably to our fashion assortments. This gives us confidence in URBN's ongoing success,” finished Mr. Hayne.
Net sales by brand and segment for the three and six-month periods were as follows:
Three Months Ended Six Months Ended July 31, July 31, 2026 2025 2026 2025 Net sales by brand Anthropologie$634,535 $606,954 $1,223,608 $1,176,885 FP Group 478,053 415,014 889,772 768,126 Urban Outfitters 360,015 333,171 664,742 606,676 Nuuly 178,605 138,932 345,869 263,286 Menus & Venues 10,707 10,684 19,269 19,283 Total Company$1,661,915 $1,504,755 $3,143,260 $2,834,256 Net sales by segment Retail Segment$1,392,520 $1,289,269 $2,613,434 $2,419,779 Subscription Segment 178,605 138,932 345,869 263,286 Wholesale Segment 90,790 76,554 183,957 151,191 Total Company$1,661,915 $1,504,755 $3,143,260 $2,834,256For the three months ended July 31, 2026, the gross profit rate increased by 580 basis points compared to the three months ended July 31, 2025, and gross profit dollars increased 27.4% to $721.6 million from $566.2 million. For the three months ended July 31, 2026, the adjusted gross profit rate increased by 4 basis points compared to the three months ended July 31, 2025, and adjusted gross profit dollars increased 10.6% to $625.9 million from $566.2 million. The increase in the adjusted gross profit rate was primarily due to leverage in store occupancy costs due to the increase in comparable Retail segment store net sales and leverage in delivery expense as a result of several company initiatives to offset fuel surcharges, partially offset by an increase in Retail segment markdowns driven by Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs. The increase in adjusted gross profit dollars was primarily due to higher net sales.
For the six months ended July 31, 2026, the gross profit rate increased by 299 basis points compared to the six months ended July 31, 2025, and gross profit dollars increased 19.8% to $1.26 billion from $1.06 billion. For the six months ended July 31, 2026, the adjusted gross profit rate decreased by 6 basis points compared to the six months ended July 31, 2025, and adjusted gross profit dollars increased 10.7% to $1.17 billion from $1.06 billion. The decrease in the adjusted gross profit rate was primarily due to an increase in Retail segment markdowns driven by Anthropologie and the impact of a prior year gain of $4.8 million, or 17 basis points, not repeated in the current year period, partially offset by leverage in store occupancy costs due to the increase in comparable Retail segment store net sales. The increase in adjusted gross profit dollars was primarily due to higher net sales.
As of July 31, 2026, total inventory increased by $82.3 million, or 11.8%, compared to total inventory as of July 31, 2025. Total Retail segment inventory increased 12.0% and Retail segment comparable inventory increased 8.4%. Wholesale segment inventory increased 10.0%. The increase in Retail segment inventory was due to the increase in net sales and timing of inventory receipts. The increase in Wholesale segment inventory was due to the increase in net sales.
For the three months ended July 31, 2026, selling, general and administrative expenses increased by $41.0 million, or 10.5%, compared to the three months ended July 31, 2025. Selling, general and administrative expenses were flat as a percentage of net sales compared to the three months ended July 31, 2025. The leverage in store payroll expenses due to the growth in Retail segment store net sales was offset by the deleverage in marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, along with increased artificial intelligence technology investments benefiting the Company's current and future operations. The dollar growth in selling, general and administrative expenses was primarily due to increased marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the growth in Retail segment store net sales.
For the six months ended July 31, 2026, selling, general and administrative expenses increased by $83.1 million, or 11.0%, compared to the six months ended July 31, 2025. Selling, general and administrative expenses deleveraged 4 basis points as a percentage of net sales compared to the six months ended July 31, 2025. The deleverage in selling, general and administrative expenses was primarily related to deleverage in marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, along with increased artificial intelligence technology investments benefiting the Company's current and future operations. This was partially offset by a discrete benefit of $6.9 million, or 22 basis points, in the current year period resulting from the reversal of a litigation accrual, as well as leverage in store payroll expenses due to the growth in Retail segment store net sales. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, increased store payroll expenses to support the growth in Retail segment store net sales and increased artificial intelligence technology investments benefiting the Company's current and future operations.
The Company’s effective tax rate for the three months ended July 31, 2026, was 19.4%, compared to 21.5% in the three months ended July 31, 2025. The Company's adjusted effective tax rate for the three months ended July 31, 2026, was 24.8%. The Company's effective tax rate for the six months ended July 31, 2026, was 19.8%, compared to 21.5% in the six months ended July 31, 2025. The Company's adjusted effective tax rate for the six months ended July 31, 2026, was 23.0%. The change in the adjusted effective tax rate for the three and six months ended July 31, 2026, was primarily attributable to the ratio of foreign taxable earnings to global taxable earnings.
Net income for the three months ended July 31, 2026, was $240.7 million and earnings per diluted share were $2.78. Adjusted net income for the three months ended July 31, 2026, was $149.3 million and adjusted earnings per diluted share were $1.72. Net income for the six months ended July 31, 2026, was $356.4 million and earnings per diluted share were $4.06. Adjusted net income for the six months ended July 31, 2026, was $265.0 million and adjusted earnings per diluted share were $3.02.
On June 4, 2019, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. During the six months ended July 31, 2026, the Company repurchased and subsequently retired 4.6 million shares for approximately $300 million. During the year ended January 31, 2026, the Company repurchased and subsequently retired 3.3 million shares for approximately $154 million. As of July 31, 2026, 10.0 million common shares were remaining under the program.
Store data for the six months ended July 31, 2026, was as follows:
January 31, July 31, 2026 Openings Closings 2026Anthropologie NA 234 3 1 236Anthropologie EU 20 1 — 21Total Anthropologie 254 4 1 257Free People NA 167 6 — 173FP Movement NA 88 10 1 97Free People EU 13 1 — 14Total FP Group 268 17 1 284Urban Outfitters NA 177 1 2 176Urban Outfitters EU 76 1 1 76Total Urban Outfitters 253 2 3 252Menus & Venues 9 — 1 8Total Company-Owned Stores 784 23 6 801Franchisee-Owned Stores(1) 9 — — 9Total URBN 793 23 6 810(1) Includes 7 Urban Outfitters and 2 Anthropologie franchisee-owned stores.
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands. The Company operates omni-channel retail operations including stores, websites and catalogs for the Anthropologie, Free People, FP Movement and Urban Outfitters brands across the United States, Canada and Europe; Menus & Venues restaurants; and Urban Outfitters and Anthropologie franchisee-owned stores in the Middle East. Free People, FP Movement and Urban Outfitters wholesale sell products to department and specialty stores worldwide, digital businesses and the Company's Retail segment. Nuuly is primarily a women's apparel subscription rental service offering a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces.
A conference call will be held today to discuss second quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/9wzhhhd4/.
As used in this document, unless otherwise defined, “Anthropologie” refers to the Company’s Anthropologie, Terrain and Maeve brands and “FP Group” refers to the Company’s Free People and FP Movement brands.
This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, currency fluctuations, economic conditions and legal or regulatory changes, the effects of war and geopolitical instability, including impacts of the conflicts in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises, labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, our effective utilization of technological advancements, including in artificial intelligence, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs such as retaliatory tariffs), border adjustment taxes or increases in duties or quotas, the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.
URBAN OUTFITTERS, INC.Condensed Consolidated Statements of Income
(amounts in thousands, except share and per share data)
(unaudited) Three Months Ended Six Months Ended July 31, July 31, 2026 2025 2026 2025 Net sales$1,661,915 $1,504,755 $3,143,260 $2,834,256 Cost of sales 940,364 938,594 1,879,143 1,779,031 Gross profit 721,551 566,161 1,264,117 1,055,225 Selling, general and administrative expenses 432,812 391,774 835,697 752,611 Income from operations 288,739 174,387 428,420 302,614 Other income, net 9,801 8,886 15,986 18,532 Income before income taxes 298,540 183,273 444,406 321,146 Income tax expense 57,889 39,408 88,050 68,934 Net income$240,651 $143,865 $356,356 $252,212 Net income per common share: Basic$2.81 $1.60 $4.12 $2.78 Diluted$2.78 $1.58 $4.06 $2.73 Weighted-average common shares outstanding: Basic 85,633,607 89,667,451 86,553,213 90,692,646 Diluted 86,667,561 91,167,981 87,719,187 92,304,624 AS A PERCENTAGE OF NET SALES Net sales 100.0% 100.0% 100.0% 100.0%Cost of sales 56.6% 62.4% 59.8% 62.8%Gross profit 43.4% 37.6% 40.2% 37.2%Selling, general and administrative expenses 26.0% 26.0% 26.6% 26.5%Income from operations 17.4% 11.6% 13.6% 10.7%Other income, net 0.6% 0.6% 0.5% 0.6%Income before income taxes 18.0% 12.2% 14.1% 11.3%Income tax expense 3.5% 2.6% 2.8% 2.4%Net income 14.5% 9.6% 11.3% 8.9%
Condensed Consolidated Balance Sheets
(amounts in thousands, except share data)
(unaudited) July 31, January 31, July 31, 2026 2026 2025 ASSETS Current assets: Cash and cash equivalents$598,756 $369,206 $332,171 Marketable securities 117,371 326,724 290,664 Accounts receivable, net of allowance for doubtful accounts
of $1,102, $1,209 and $2,388, respectively 102,958 95,668 86,922 Inventory 778,539 700,945 696,199 Prepaid expenses and other current assets 226,772 193,561 213,356 Total current assets 1,824,396 1,686,104 1,619,312 Property and equipment, net 1,658,270 1,466,236 1,376,811 Operating lease right-of-use assets 1,047,947 1,051,109 1,011,840 Marketable securities 229,407 461,858 366,336 Other assets 362,967 342,306 336,494 Total Assets$5,122,987 $5,007,613 $4,710,793 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable$372,642 $327,903 $335,985 Current portion of operating lease liabilities 223,177 225,478 227,105 Accrued expenses, accrued compensation and other
current liabilities 558,300 564,713 533,058 Total current liabilities 1,154,119 1,118,094 1,096,148 Non-current portion of operating lease liabilities 990,197 1,000,088 953,025 Other non-current liabilities 124,455 74,144 81,228 Total Liabilities 2,268,771 2,192,326 2,130,401 Shareholders’ equity: Preferred shares; $.0001 par value, 10,000,000 shares
authorized, none issued — — — Common shares; $.0001 par value, 200,000,000 shares authorized,
85,650,390, 89,698,222 and 89,696,293 shares issued and
outstanding, respectively9 9 9 Additional paid-in-capital 7,022 19,912 7,277 Retained earnings 2,877,697 2,817,448 2,604,741 Accumulated other comprehensive loss (30,512) (22,082) (31,635)Total Shareholders’ Equity 2,854,216 2,815,287 2,580,392 Total Liabilities and Shareholders’ Equity$5,122,987 $5,007,613 $4,710,793
Condensed Consolidated Statements of Cash Flows
(amounts in thousands)
(unaudited) Six Months Ended July 31, 2026 2025 Cash flows from operating activities: Net income $356,356 $252,212 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 73,637 61,400 Non-cash lease expense 106,053 106,546 Provision for deferred income taxes 73,591 11,608 Share-based compensation expense 15,702 14,956 Amortization of tax credit investment 7,452 8,587 Loss on disposition of property and equipment, net 388 262 Changes in assets and liabilities: Receivables (7,546) (12,025)Inventory (79,103) (70,611)Prepaid expenses and other assets (70,389) (25,095)Payables, accrued expenses and other liabilities 36,095 23,336 Operating lease liabilities (120,494) (120,130)Net cash provided by operating activities 391,742 251,046 Cash flows from investing activities: Cash paid for property and equipment (268,056) (107,549)Cash paid for marketable securities (117,984) (220,293)Sales and maturities of marketable securities 555,597 295,861 Net cash provided by (used in) investing activities 169,557 (31,981)Cash flows from financing activities: Proceeds from the exercise of stock options — 928 Share repurchases related to share repurchase program (299,996) (151,935)Share repurchases related to taxes for share-based awards (22,092) (21,144)Tax credit investment liability payments (7,803) (8,437)Net cash used in financing activities (329,891) (180,588)Effect of exchange rate changes on cash and cash equivalents (1,858) 3,213 Increase in cash and cash equivalents 229,550 41,690 Cash and cash equivalents at beginning of period 369,206 290,481 Cash and cash equivalents at end of period $598,756 $332,171
Important Information Regarding Non-GAAP Financial Measures
In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include refunds for tariffs previously paid under the International Emergency Economic Powers Act ("IEEPA"), associated interest income and the release of a valuation allowance against certain foreign net deferred tax assets. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures for fiscal 2027 that exclude the impact of these non-core business items.
We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.
URBAN OUTFITTERS, INC. Reconciliation of Non-GAAP Financial Measures (amounts in thousands, except per share data) (unaudited) Reconciliation of Total Company Adjusted Gross Profit: Three Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Gross profit (GAAP)$721,551 43.4% $566,161 37.6%Adjustments: IEEPA tariff refunds (a) (95,660) — Adjusted gross profit (Non-GAAP)$625,891 37.7% $566,161 37.6% Six Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Gross profit (GAAP)$1,264,117 40.2% $1,055,225 37.2%Adjustments: IEEPA tariff refunds (a) (95,660) — Adjusted gross profit (Non-GAAP)$1,168,457 37.2% $1,055,225 37.2%