Urban Outfitters Reports 11.3% Revenue Growth in Q2 Fiscal 2026

Urban Outfitters, Inc. reported a significant increase in financial performance for the second quarter and first half of fiscal 2026, ending July 31, 2025. The company achieved net sales of $1.50 billion for the three months ended July 31, 2025, a 11.3% increase from $1.35 billion in the same period last year. For the six months, net sales reached $2.83 billion, up 11.0% from $2.55 billion in the prior year. The gross profit for the second quarter was $566.2 million, representing a gross profit margin of 37.6%, compared to 36.5% in the previous year. Net income for the quarter was $143.9 million, or $1.60 per share, compared to $117.5 million, or $1.26 per share, in the prior year.

The company noted several strategic developments contributing to its financial performance. Retail segment net sales increased by $92.8 million, or 7.8%, driven by comparable store sales growth across its brands, including a 6.7% increase at Free People and a 5.7% increase at Anthropologie. The Subscription segment, which includes the Nuuly brand, saw a 53.2% increase in net sales, attributed to a 48.1% rise in the average number of active subscribers. The Wholesale segment also experienced growth, with net sales increasing by 18.1% due to higher sales to specialty customers.

Operationally, Urban Outfitters expanded its store footprint, opening 27 new company-owned stores while closing four, resulting in a total of 756 stores as of July 31, 2025. The company’s total inventory increased by 15.1% to $696.2 million, reflecting planned early receipts of merchandise to support anticipated sales growth. The company also reported a 12.5% increase in selling, general, and administrative expenses, primarily due to increased marketing and payroll expenses to support sales growth.

Looking ahead, Urban Outfitters plans to continue its expansion strategy, projecting the opening of approximately 69 new retail locations in fiscal 2026. The company is also investing in its distribution network and technology to enhance its omni-channel capabilities. Despite the positive outlook, Urban Outfitters acknowledged potential challenges from macroeconomic factors, including inflation and changing consumer spending patterns, which could impact future performance. The company remains committed to adapting its strategies to navigate these challenges while pursuing growth opportunities across its segments.