Urban Outfitters Reports 12.3% Revenue Growth to $1.53 Billion in Third Quarter

Urban Outfitters, Inc. reported a significant increase in financial performance for the third quarter and first nine months of fiscal 2026, ending October 31, 2025. The company achieved net sales of $1.53 billion for the third quarter, a 12.3% increase from $1.36 billion in the same period last year. For the nine months, net sales reached $4.36 billion, up 11.5% from $3.91 billion in the prior year. The gross profit for the third quarter was $563.3 million, representing a gross profit margin of 36.8%, compared to 36.5% in the previous year. Net income for the third quarter was $116.4 million, or $1.30 per share, compared to $102.9 million, or $1.12 per share, in the same quarter last year.

The company noted several operational improvements contributing to this growth. Retail segment net sales increased by $113.9 million, driven by a 12.5% rise in comparable store sales at Urban Outfitters, 7.6% at Anthropologie, and 4.1% at Free People. The Subscription segment also saw a notable increase, with net sales rising by 48.7%, attributed to a 42.2% increase in the average number of active subscribers. The Wholesale segment experienced a 7.6% increase in net sales, primarily due to higher sales to specialty customers.

Urban Outfitters also reported a 13.7% increase in selling, general, and administrative expenses, totaling $419 million for the third quarter. This increase was largely due to heightened marketing expenses aimed at supporting customer growth and increased sales across the Retail and Subscription segments. The company recorded store impairment charges of $2 million during the quarter, reflecting ongoing adjustments to its retail footprint.

In terms of strategic developments, Urban Outfitters has continued to expand its store presence, opening 41 new locations while closing six, resulting in a total of 768 company-owned stores as of October 31, 2025. The company plans to further expand its store base, projecting 69 new openings for fiscal 2026. Additionally, Urban Outfitters is focusing on enhancing its digital channels, which have shown growth in both traffic and transaction metrics.

Looking ahead, Urban Outfitters remains cautious about macroeconomic conditions, including inflation and potential impacts from global trade policies. The company is actively evaluating its supply chain strategies to mitigate risks associated with tariffs and is committed to maintaining its growth trajectory through both retail and digital channels. The management anticipates continued growth in net sales and profitability, supported by its diversified brand portfolio and strategic investments in marketing and technology.