Urban Outfitters achieves highest adjusted profit quarter in company history

Lifestyle retail group Urban Outfitters delivered record net sales and its highest adjusted profit quarter in company history, for the second quarter ended July 31, 2026.

Total net sales for the three months, increased 10.4 percent year-over-year (YoY) to 1.66 billion dollars. Total retail segment net sales rose 8 percent, with comparable retail segment net sales growing 6.2 percent. The performance was supported by high single-digit positive growth across digital channels and mid single-digit gains in retail store locations.

Comparable retail segment sales rose across all brand groups, increasing 10 percent at FP Group, 8.4 percent at Urban Outfitters and 3 percent at Anthropologie. Subscription segment net sales grew 28.6 percent, driven by a 30.4 percent expansion in average active subscribers at monthly apparel rental service Nuuly. Wholesale segment net sales increased 18.6 percent, propelled by a 19.2 percent surge in FP Group wholesale activity following higher deliveries to specialty retailers and department stores.

Net income for the second quarter reached 240.7 million dollars, or 2.78 dollars per diluted share. On an adjusted basis, net income stood at 149.3 million dollars, or 1.72 dollars per diluted share, compared to unadjusted figures. Adjusted results exclude one-time benefits related to International Emergency Economic Powers Act (IEEPA) tariff refunds, associated interest income, and a tax benefit tied to foreign net deferred tax asset valuation allowances.

The company's chief executive officer, Richard A. Hayne, stated: “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.”

Margins and H1 results

Gross profit for the second quarter rose 27.4 percent to 721.6 million dollars, with the gross profit rate expanding by 580 basis points YoY. Adjusted gross profit grew 10.6 percent to 625.9 million dollars, representing a slight adjusted gross profit rate expansion of four basis points.

For the first six months of fiscal 2027 ended July 31, 2026, URBN reported total net sales growth of 10.9 percent YoY to 3.14 billion dollars. Comparable Retail segment sales increased 6 percent, led by a 9.9 percent gain at FP Group, 8.8 percent at Urban Outfitters and 2.5 percent at Anthropologie. Subscription segment sales climbed 31.4 percent, while wholesale segment net sales rose 21.7 percent. First-half net income reached 356.4 million dollars, or 4.06 dollars per diluted share, while adjusted net income totalled 265.0 million dollars, or 3.02 dollars per diluted share.

During the six-month period, the company repurchased and retired 4.6 million common shares for approximately 300 million dollars under its share repurchase authorization established on June 4, 2019. As of July 31, 2026, 10 million shares remained available under the program.