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URBN Reports Record Q4 Sales and FY'25 Profits

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Urban Outfitters (NASDAQ:URBN) reported record financial results for Q4 and FY 2025. The company achieved net income of $120.3 million ($1.28 per share) for Q4 and a record $402.5 million ($4.26 per share) for FY'25.

Q4 total net sales increased 10.1% to a record $1.64 billion, with Retail segment up 6.3%, Subscription segment surging 78.4%, and Wholesale segment growing 26.2%. For FY'25, total sales rose 7.7% to $5.55 billion.

By brand performance, Anthropologie saw 8.3% comparable sales growth in Q4, Free People achieved 8.0% growth, while Urban Outfitters decreased 3.5%. The gross profit rate improved by 304 basis points in Q4, with gross profit dollars increasing 21.5% to $527.7 million.

The company expanded its retail presence, opening 57 new locations while closing 30 stores during FY'25. Inventory levels increased 12.9% year-over-year to support sales growth and planned early receipts.

Urban Outfitters (NASDAQ:URBN) ha riportato risultati finanziari record per il quarto trimestre e l'anno fiscale 2025. L'azienda ha raggiunto un reddito netto di 120,3 milioni di dollari (1,28 dollari per azione) per il Q4 e un record di 402,5 milioni di dollari (4,26 dollari per azione) per l'anno fiscale '25.

Le vendite nette totali del Q4 sono aumentate del 10,1% raggiungendo un record di 1,64 miliardi di dollari, con il segmento Retail in crescita del 6,3%, il segmento Abbonamenti in aumento del 78,4% e il segmento all'ingrosso in crescita del 26,2%. Per l'anno fiscale '25, le vendite totali sono aumentate del 7,7% raggiungendo 5,55 miliardi di dollari.

Per quanto riguarda le performance dei marchi, Anthropologie ha registrato una crescita delle vendite comparabili dell'8,3% nel Q4, Free People ha ottenuto una crescita dell'8,0%, mentre Urban Outfitters ha registrato un calo del 3,5%. Il tasso di profitto lordo è migliorato di 304 punti base nel Q4, con i dollari di profitto lordo che sono aumentati del 21,5% a 527,7 milioni di dollari.

L'azienda ha ampliato la sua presenza al dettaglio, aprendo 57 nuove sedi mentre ha chiuso 30 negozi durante l'anno fiscale '25. I livelli di inventario sono aumentati del 12,9% rispetto all'anno precedente per supportare la crescita delle vendite e le consegne anticipate pianificate.

Urban Outfitters (NASDAQ:URBN) reportó resultados financieros récord para el cuarto trimestre y el año fiscal 2025. La compañía logró un ingreso neto de 120,3 millones de dólares (1,28 dólares por acción) para el Q4 y un récord de 402,5 millones de dólares (4,26 dólares por acción) para el año fiscal '25.

Las ventas netas totales del Q4 aumentaron un 10,1% alcanzando un récord de 1,64 mil millones de dólares, con el segmento Retail creciendo un 6,3%, el segmento de Suscripciones aumentando un 78,4% y el segmento Mayorista creciendo un 26,2%. Para el año fiscal '25, las ventas totales aumentaron un 7,7% alcanzando 5,55 mil millones de dólares.

En cuanto al rendimiento de las marcas, Anthropologie vio un crecimiento de ventas comparables del 8,3% en el Q4, Free People logró un crecimiento del 8,0%, mientras que Urban Outfitters disminuyó un 3,5%. La tasa de beneficio bruto mejoró en 304 puntos básicos en el Q4, con los dólares de beneficio bruto aumentando un 21,5% a 527,7 millones de dólares.

La empresa amplió su presencia minorista, abriendo 57 nuevas ubicaciones mientras cerró 30 tiendas durante el año fiscal '25. Los niveles de inventario aumentaron un 12,9% interanual para apoyar el crecimiento de las ventas y las recepciones anticipadas planificadas.

Urban Outfitters (NASDAQ:URBN)는 2025 회계연도 4분기 및 전체 연도에 대한 기록적인 재무 결과를 발표했습니다. 회사는 4분기에 1억 2천 3백만 달러 (주당 1.28달러)의 순이익을 달성했으며, 2025 회계연도에는 4억 2천 5백만 달러 (주당 4.26달러)의 기록을 세웠습니다.

4분기 총 순매출은 10.1% 증가하여 16억 4천만 달러의 기록을 세웠으며, 소매 부문은 6.3% 증가, 구독 부문은 78.4% 급증, 도매 부문은 26.2% 성장했습니다. 2025 회계연도 전체 매출은 7.7% 증가하여 55억 5천만 달러에 달했습니다.

브랜드 성과에 따르면, Anthropologie는 4분기에 8.3%의 비교 가능한 매출 성장을 보였고, Free People은 8.0% 성장했으며, Urban Outfitters는 3.5% 감소했습니다. 총 이익률은 4분기에 304bp 개선되었으며, 총 이익금은 21.5% 증가하여 5억 2천 7백만 달러에 달했습니다.

회사는 2025 회계연도 동안 30개의 매장을 폐쇄하면서 57개의 새로운 매장을 열어 소매 존재를 확장했습니다. 재고 수준은 판매 성장과 계획된 조기 수령을 지원하기 위해 전년 대비 12.9% 증가했습니다.

Urban Outfitters (NASDAQ:URBN) a annoncé des résultats financiers records pour le quatrième trimestre et l'exercice 2025. L'entreprise a réalisé un revenu net de 120,3 millions de dollars (1,28 dollar par action) pour le Q4 et un record de 402,5 millions de dollars (4,26 dollars par action) pour l'exercice '25.

Les ventes nettes totales du Q4 ont augmenté de 10,1% pour atteindre un record de 1,64 milliard de dollars, avec le segment de la vente au détail en hausse de 6,3%, le segment des abonnements en forte hausse de 78,4% et le segment de gros en croissance de 26,2%. Pour l'exercice '25, les ventes totales ont augmenté de 7,7% pour atteindre 5,55 milliards de dollars.

En termes de performances des marques, Anthropologie a enregistré une croissance des ventes comparables de 8,3% au Q4, Free People a atteint une croissance de 8,0%, tandis qu'Urban Outfitters a diminué de 3,5%. Le taux de marge brute s'est amélioré de 304 points de base au Q4, avec un bénéfice brut en dollars augmentant de 21,5% à 527,7 millions de dollars.

L'entreprise a élargi sa présence de vente au détail, ouvrant 57 nouveaux emplacements tout en fermant 30 magasins durant l'exercice '25. Les niveaux de stock ont augmenté de 12,9% par rapport à l'année précédente pour soutenir la croissance des ventes et les réceptions anticipées planifiées.

Urban Outfitters (NASDAQ:URBN) hat für das vierte Quartal und das Geschäftsjahr 2025 Rekordergebnisse gemeldet. Das Unternehmen erzielte einen Nettoertrag von 120,3 Millionen Dollar (1,28 Dollar pro Aktie) für das Q4 und einen Rekord von 402,5 Millionen Dollar (4,26 Dollar pro Aktie) für das Geschäftsjahr '25.

Die gesamten Nettoumsätze im Q4 stiegen um 10,1% auf einen Rekord von 1,64 Milliarden Dollar, wobei das Einzelhandelssegment um 6,3%, das Abonnementsegment um 78,4% und das Großhandelssegment um 26,2% wuchs. Für das Geschäftsjahr '25 stiegen die Gesamteinnahmen um 7,7% auf 5,55 Milliarden Dollar.

Die Markenperformance zeigt, dass Anthropologie im Q4 ein vergleichbares Umsatzwachstum von 8,3% verzeichnete, Free People ein Wachstum von 8,0% erreichte, während Urban Outfitters um 3,5% zurückging. Die Bruttomarge verbesserte sich im Q4 um 304 Basispunkte, wobei die Bruttogewinne um 21,5% auf 527,7 Millionen Dollar stiegen.

Das Unternehmen hat seine Einzelhandelspräsenz erweitert, indem es 57 neue Standorte eröffnet und während des Geschäftsjahres '25 30 Filialen geschlossen hat. Die Lagerbestände stiegen im Jahresvergleich um 12,9%, um das Umsatzwachstum und die geplanten vorzeitigen Lieferungen zu unterstützen.

Positive
  • Record Q4 revenue of $1.64B (+10.1% YoY)
  • Record FY25 net income of $402.5M
  • Q4 gross profit margin improved 304 basis points
  • Subscription segment revenue surged 78.4% in Q4
  • Strong Anthropologie (+8.3%) and Free People (+8.0%) Q4 comparable sales
Negative
  • Urban Outfitters brand comparable sales declined 3.5% in Q4
  • Inventory increased 12.9% YoY
  • SG&A expenses increased 8.6% in Q4

Insights

Urban Outfitters delivered record Q4 sales of $1.64 billion (up 10.1%) and record annual profits of $402.5 million for FY2025, significantly outperforming analyst expectations. The standout metric is the 304 basis point gross margin expansion in Q4, demonstrating remarkable pricing power and inventory management improvements across the portfolio.

The results reveal a tale of two trajectories within URBN's brand portfolio: Anthropologie (+8.3%) and Free People (+8.0%) delivered robust comparable sales growth in Q4, while the Urban Outfitters brand declined 3.5%. This performance gap has persisted throughout the fiscal year, suggesting a potential need for strategic repositioning of the flagship brand.

The Nuuly subscription service emerged as the company's growth engine, with Q4 revenue surging 78.4% year-over-year, driven by a 53.5% increase in active subscribers. This validates management's pivot toward the subscription model and represents a significant diversification from traditional retail.

Inventory levels increased 12.9% year-over-year, outpacing sales growth of 10.1%. While management attributes this to supporting growth and planned early receipts, this inventory-to-sales ratio bears watching as it could pressure margins if consumer demand softens.

SG&A expenses showed modest Q4 leverage (33 basis points) but delevered slightly for the full year, primarily due to increased marketing investments. This strategic spending appears justified given the customer growth across segments.

The company's store portfolio optimization continues with 57 new locations opened (heavily weighted toward Free People and FP Movement) and 30 underperforming stores closed. This targeted expansion strategy reflects management's confidence in physical retail for specific brands while acknowledging the need for footprint rationalization elsewhere.

Urban Outfitters' Q4 results demonstrate exceptional execution in a specialty retail landscape where many competitors are struggling to generate consistent growth. The 10.1% revenue increase and 304 basis point gross margin expansion stand in stark contrast to department store and mall-based peers who continue facing traffic and margin pressures.

The company's portfolio strategy is proving remarkably effective at mitigating brand-specific challenges. While the Urban Outfitters brand declined 3.5%, the robust performance at Anthropologie (+8.3%) and Free People (+8.0%) more than compensated, highlighting the risk diversification benefits of URBN's multi-brand approach.

The Nuuly subscription service represents URBN's most significant strategic evolution. Its 78.4% revenue growth and 53.5% subscriber increase validate the company's early investment in the clothing rental model. This positions URBN ahead of traditional retailers still overly dependent on the buy-to-own model while younger consumers increasingly embrace the sharing economy.

URBN's store strategy reveals a sophisticated understanding of the evolving retail landscape. The company opened 25 FP Movement locations during the year, aggressively expanding into the high-margin activewear market that continues showing resilience even as other apparel categories fluctuate with fashion cycles.

The inventory increase of 12.9% slightly outpaces sales growth, creating some potential risk if consumer spending weakens. However, URBN's demonstrated markdown management capabilities and strong gross margin performance suggest the company has the tools to navigate any inventory challenges.

Most impressive is URBN's balanced growth across channels. While many retailers struggle to profitably integrate online and offline operations, URBN achieved high single-digit digital growth alongside positive store traffic - the ideal omnichannel scenario that has eluded many competitors.

The results validate URBN's long-term strategy of brand diversification, channel flexibility, and business model innovation, positioning the company for continued outperformance in an evolving retail landscape.

PHILADELPHIA, Feb. 26, 2025 (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 $120.3 million and earnings per diluted share of $1.28 for the three months ended January 31, 2025. For the year ended January 31, 2025, net income was a record $402.5 million and earnings per diluted share were $4.26.

For the three months ended January 31, 2025 and 2024, adjusted net income was $98.1 million and $65.8 million, respectively, and adjusted earnings per diluted share were $1.04 and $0.69, respectively. For the years ended January 31, 2025 and 2024, adjusted net income was $383.9 million and $304.6 million, respectively, and adjusted earnings per diluted share were $4.06 and $3.23, respectively. Adjusted net income and earnings per diluted share for the three months ended January 31, 2025, excludes a release of income tax reserves. Adjusted net income and earnings per diluted share for the year ended January 31, 2025, excludes store impairment and lease abandonment charges and a release of income tax reserves. Adjusted net income and earnings per diluted share for the three months and year ended January 31, 2024, excludes store impairment and lease abandonment charges, an asset impairment charge and a change in revenue recognition method for Nuuly. See "Reconciliation of Non-GAAP Financial Measures" included at the end of this release.

Total Company net sales for the three months ended January 31, 2025, increased 10.1% to a record $1.64 billion. Total Company net sales for the three months ended January 31, 2025, increased 9.4% compared to total Company adjusted net sales for the three months ended January 31, 2024. Total Retail segment net sales increased 6.3%, with comparable Retail segment net sales increasing 5.1%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 8.3% at Anthropologie and 8.0% at Free People and decreased 3.5% at Urban Outfitters. Subscription segment net sales increased by 78.4%. Subscription segment net sales increased by 55.6% compared to Subscription segment adjusted net sales for the three months ended January 31, 2024. The Subscription segment adjusted net sales increase was primarily driven by a 53.5% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 26.2% driven by a 27.0% increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores.

For the year ended January 31, 2025, total Company net sales increased 7.7% to a record $5.55 billion. Total Company net sales for the year ended January 31, 2025, increased 7.6% compared to total Company adjusted net sales for the year ended January 31, 2024. Total Retail segment net sales increased 4.7%, with comparable Retail segment net sales increasing 3.4%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 8.9% at Free People and 7.7% at Anthropologie and decreased 8.7% at Urban Outfitters. Subscription segment net sales increased by 60.4%. Subscription segment net sales increased by 56.8% compared to Subscription segment adjusted net sales for the year ended January 31, 2024. The Subscription segment adjusted net sales increase was primarily driven by a 51.3% increase in average active subscribers in the current year versus the prior year period. Wholesale segment net sales increased 15.5% driven by a 17.9% increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales.

“We are pleased to announce record Q4 revenues and full-year profits,” said Richard A. Hayne, Chief Executive Officer. “Our success was driven by strength across all three segments – Retail, Subscription and Wholesale. We believe these results demonstrate the effectiveness of our strategic initiatives and give us confidence in URBN's continued success,” finished Mr. Hayne.

Net sales by brand and segment for the three and twelve-month periods were as follows:

 Three Months Ended  Twelve Months Ended 
 January 31,  January 31, 
 2025  2024  2025  2024 
Net sales by brand           
Anthropologie(1)$743,030  $679,524  $2,426,438  $2,233,070 
Free People(2) 410,618   362,266   1,460,295   1,298,974 
Urban Outfitters 360,192   372,566   1,247,742   1,352,073 
Nuuly 112,524   63,080   378,394   235,859 
Menus & Venues 9,756   8,758   37,797   33,261 
Total Company$1,636,120  $1,486,194  $5,550,666  $5,153,237 
            
Net sales by segment           
Retail Segment$1,454,996  $1,368,742  $4,896,694  $4,678,698 
Subscription Segment(3) 112,524   63,080   378,394   235,859 
Wholesale Segment 68,600   54,372   275,578   238,680 
Total Company$1,636,120  $1,486,194  $5,550,666  $5,153,237 
                

Adjusted net sales by brand and segment for the three and twelve-month periods were as follows:

 Three Months Ended  Twelve Months Ended 
 January 31,  January 31, 
 2025  2024  2025  2024 
Adjusted net sales by brand           
Anthropologie(1)$743,030  $679,524  $2,426,438  $2,233,070 
Free People(2) 410,618   362,266   1,460,295   1,298,974 
Urban Outfitters 360,192   372,566   1,247,742   1,352,073 
Nuuly 112,524   72,309   378,394   241,315 
Menus & Venues 9,756   8,758   37,797   33,261 
Total Company$1,636,120  $1,495,423  $5,550,666  $5,158,693 
            
Adjusted net sales by segment           
Retail Segment$1,454,996  $1,368,742  $4,896,694  $4,678,698 
Subscription Segment(3) 112,524   72,309   378,394   241,315 
Wholesale Segment 68,600   54,372   275,578   238,680 
Total Company$1,636,120  $1,495,423  $5,550,666  $5,158,693 
                

(1) Anthropologie includes the Anthropologie and Terrain brands.
(2) Free People includes the Free People and FP Movement brands.
(3) The Subscription segment (formerly known as the Nuuly segment) includes the Nuuly brand, which is primarily a monthly women's apparel subscription rental service.

For the three months ended January 31, 2025, the gross profit rate increased by 304 basis points compared to the three months ended January 31, 2024, and gross profit dollars increased 21.5% to $527.7 million from $434.2 million. For the three months ended January 31, 2025, the gross profit rate as a percentage of net sales increased by 203 basis points compared to the adjusted gross profit rate as a percentage of adjusted net sales in the three months ended January 31, 2024. Adjusted gross profit dollars increased by 16.8% to $527.7 million from $451.9 million. The increase in adjusted gross profit rate was primarily due to improved Retail segment markdowns driven by lower markdowns at Urban Outfitters, which were partially offset by an increase at Free People. The increase in adjusted gross profit dollars was due to higher adjusted net sales and the improved adjusted gross profit rate.

For the year ended January 31, 2025, the gross profit rate increased by 142 basis points compared to the year ended January 31, 2024, and gross profit dollars increased 12.3% to $1.93 billion from $1.72 billion. For the year ended January 31, 2025, the adjusted gross profit rate as a percentage of net sales increased by 122 basis points compared to the adjusted gross profit rate as a percentage of adjusted net sales in the year ended January 31, 2024. Adjusted gross profit dollars increased by 11.5% to $1.93 billion from $1.73 billion. The increase in adjusted gross profit rate for the year ended January 31, 2025, was primarily due to higher initial merchandise markups for all segments primarily driven by Company cross-functional initiatives. The increase in adjusted gross profit dollars was due to higher adjusted net sales and the improved adjusted gross profit rate.

As of January 31, 2025, total inventory increased by $70.9 million, or 12.9%, compared to total inventory as of January 31, 2024. Total Retail segment inventory increased 10.1%. Retail segment comparable inventory increased 11.3%. Wholesale segment inventory increased 43.7%. The increase in inventory for both segments was to support increased sales and planned early receipts.

For the three months ended January 31, 2025, selling, general and administrative expenses increased by $31.9 million, or 8.6%, compared to the three months ended January 31, 2024. Selling, general and administrative expenses leveraged 33 basis points as a percentage of net sales and expressed as a percentage of adjusted net sales leveraged 18 basis points compared to the three months ended January 31, 2024. The leverage in selling, general and administrative expenses as a rate to adjusted net sales was primarily related to a leverage in store payroll expenses due to the Retail segment stores net sales growth. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth.

For the year ended January 31, 2025, selling, general and administrative expenses increased by $113.7 million, or 8.5%, compared to the year ended January 31, 2024. Selling, general and administrative expenses deleveraged 19 basis points as a percentage of net sales and expressed as a percentage of adjusted net sales deleveraged 22 basis points compared to the year ended January 31, 2024. The deleverage in selling, general and administrative expenses as a rate to adjusted net sales was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth.

The Company’s effective tax rate for the three months ended January 31, 2025, was 8.1%, compared to 25.4% in the three months ended January 31, 2024. The Company's effective tax rate for the year ended January 31, 2025 was 19.5%, compared to 24.6% in the year ended January 31, 2024. The decrease in the effective tax rate for the three months and year ended January 31, 2025, was primarily due to the tax benefit from the release of a portion of our income tax reserves as a result of a lapse of the statute of limitations for federal tax purposes. The adjusted effective tax rate for the three months ended January 31, 2025, was 25.0%, compared to 25.3% for the three months ended January 31, 2024. The Company’s adjusted effective tax rate for the year ended January 31, 2025, was 23.9%, compared to 24.6% in the year ended January 31, 2024.

Net income for the three months ended January 31, 2025, was $120.3 million and earnings per diluted share were $1.28. Adjusted net income for the three months ended January 31, 2025 was $98.1 million and adjusted earnings per diluted share were $1.04. Net income for the year ended January 31, 2025, was a record $402.5 million and earnings per diluted share were $4.26. Adjusted net income for the year ended January 31, 2025, was $383.9 million and adjusted earnings per diluted share were $4.06.

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 twelve months ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of January 31, 2025, 18.0 million common shares were remaining under the program.

During the twelve months ended January 31, 2025, the Company opened a total of 57 new retail locations including: 37 Free People stores (including 25 FP Movement stores), 13 Anthropologie stores and 7 Urban Outfitters stores; and closed 30 retail locations including: 14 Urban Outfitters stores, 11 Anthropologie stores and 5 Free People stores.

Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 255 Urban Outfitters stores in the United States, Canada and Europe and websites; 239 Anthropologie stores in the United States, Canada and Europe, catalogs and websites; 230 Free People stores (including 63 FP Movement stores) in the United States, Canada and Europe, catalogs and websites, 9 Menus & Venues restaurants, 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores as of January 31, 2025. Free People, FP Movement and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company’s Retail segment. Nuuly is primarily a women's apparel subscription rental service which offers 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 fourth quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/g8t6it8j/. 

As used in this document, unless otherwise defined, "Anthropologie" refers to the Company's Anthropologie and Terrain brands and "Free People" 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, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, including geopolitical instability, impacts of the conflict 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 (such as the coronavirus (COVID-19)), 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, 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, 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.

(Tables follow)

URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Income
(amounts in thousands, except share and per share data)
(unaudited)
     
 Three Months Ended  Twelve Months Ended 
 January 31,  January 31, 
 2025  2024  2025  2024 
Net sales$1,636,120  $1,486,194  $5,550,666  $5,153,237 
Cost of sales (excluding store impairment and lease abandonment charges) 1,108,439   1,041,526   3,619,395   3,425,958 
Store impairment and lease abandonment charges —   10,483   4,601   11,875 
Gross profit 527,681   434,185   1,926,670   1,715,404 
Selling, general and administrative expenses 402,367   370,445   1,452,906   1,339,205 
Asset impairment —   6,404   —   6,404 
Income from operations 125,314   57,336   473,764   369,795 
Other income, net 5,592   6,689   26,408   11,812 
Income before income taxes 130,906   64,025   500,172   381,607 
Income tax expense 10,605   16,274   97,710   93,933 
Net income$120,301  $47,751  $402,462  $287,674 
            
Net income per common share:           
Basic$1.30  $0.51  $4.34  $3.10 
Diluted$1.28  $0.50  $4.26  $3.05 
            
Weighted-average common shares outstanding:           
Basic 92,279,466   92,786,380   92,684,127   92,697,751 
Diluted 94,259,134   94,805,976   94,448,046   94,327,785 
            
            
AS A PERCENTAGE OF NET SALES           
Net sales 100.0%  100.0%  100.0%  100.0%
Cost of sales (excluding store impairment and lease abandonment charges) 67.7%  70.1%  65.2%  66.5%
Store impairment and lease abandonment charges —   0.7%  0.1%  0.2%
Gross profit 32.3%  29.2%  34.7%  33.3%
Selling, general and administrative expenses 24.6%  24.8%  26.2%  26.0%
Asset impairment —   0.5%  —   0.1%
Income from operations 7.7%  3.9%  8.5%  7.2%
Other income, net 0.3%  0.4%  0.5%  0.2%
Income before income taxes 8.0%  4.3%  9.0%  7.4%
Income tax expense 0.6%  1.1%  1.7%  1.8%
Net income 7.4%  3.2%  7.3%  5.6%
                


URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(amounts in thousands, except share data)
(unaudited)
 
 January 31,  January 31, 
 2025  2024 
ASSETS     
Current assets:     
Cash and cash equivalents$290,481  $178,321 
Marketable securities 319,949   286,744 
Accounts receivable, net of allowance for doubtful accounts of $1,384 and $1,465, respectively 74,014   67,008 
Inventory 621,146   550,242 
Prepaid expenses and other current assets 187,206   200,188 
Total current assets 1,492,796   1,282,503 
Property and equipment, net 1,331,077   1,286,541 
Operating lease right-of-use assets 942,666   920,396 
Marketable securities 410,208   314,152 
Other assets 342,733   307,617 
Total Assets$4,519,480  $4,111,209 
      
LIABILITIES AND SHAREHOLDERS’ EQUITY     
Current liabilities:     
Accounts payable$295,767  $253,342 
Current portion of operating lease liabilities 227,149   226,645 
Accrued expenses, accrued compensation and other current liabilities 552,763   514,218 
Total current liabilities 1,075,679   994,205 
Non-current portion of operating lease liabilities 871,209   851,853 
Other non-current liabilities 101,088   152,611 
Total Liabilities 2,047,976   1,998,669 
      
Shareholders’ equity:     
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued —   — 
Common shares; $.0001 par value, 200,000,000 shares authorized, 92,281,748 and 92,787,522 shares issued and outstanding, respectively9  9 
Additional paid-in-capital 15,067   37,943 
Retained earnings 2,503,068   2,113,735 
Accumulated other comprehensive loss (46,640)  (39,147)
Total Shareholders’ Equity 2,471,504   2,112,540 
Total Liabilities and Shareholders’ Equity$4,519,480  $4,111,209 
        


URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Cash Flows
(amounts in thousands)
(unaudited)
 
  Twelve Months Ended 
  January 31, 
  2025  2024 
Cash flows from operating activities:      
Net income $402,462  $287,674 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  115,425   102,487 
Non-cash lease expense  214,605   202,265 
(Benefit) provision for deferred income taxes  (2,966)  24,711 
Share-based compensation expense  31,039   30,508 
Amortization of tax credit investment  17,224   15,906 
Store impairment and lease abandonment charges  4,601   11,875 
Asset impairment  —   6,404 
Loss on disposition of property and equipment, net  1,641   309 
Changes in assets and liabilities:      
Receivables  (7,319)  3,708 
Inventory  (72,945)  38,785 
Prepaid expenses and other assets  (17,471)  (53,532)
Payables, accrued expenses and other liabilities  59,690   74,185 
Operating lease liabilities  (243,152)  (235,874)
Net cash provided by operating activities  502,834   509,411 
Cash flows from investing activities:      
Cash paid for property and equipment  (182,581)  (199,625)
Cash paid for marketable securities  (542,944)  (649,389)
Sales and maturities of marketable securities  416,756   347,366 
Initial cash payment for tax credit investment  —   (20,000)
Net cash used in investing activities  (308,769)  (521,648)
Cash flows from financing activities:      
Proceeds from the exercise of stock options  851   594 
Share repurchases related to share repurchase program  (52,262)  — 
Share repurchases related to taxes for share-based awards  (15,402)  (8,407)
Tax credit investment liability payments  (10,301)  (4,319)
Net cash used in financing activities  (77,114)  (12,132)
Effect of exchange rate changes on cash and cash equivalents  (4,791)  1,430 
Increase (decrease) in cash and cash equivalents  112,160   (22,939)
Cash and cash equivalents at beginning of period  178,321   201,260 
Cash and cash equivalents at end of period $290,481  $178,321 
         

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 store impairment and lease abandonment charges, a release of income tax reserves, an asset impairment charge and a change in revenue recognition method for Nuuly. 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 2025 and 2024 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 Net Sales:        
 Three Months Ended
 January 31,
 2025  2024
 $'s  % Change  $'s 
         
Net sales (GAAP)$1,636,120   10.1% $1,486,194 
Adjustments:        
Change in revenue recognition method for Nuuly (a) —      9,229 
Adjusted net sales (Non-GAAP)$1,636,120   9.4% $1,495,423 
         
 Twelve Months Ended
 January 31,
 2025  2024
 $'s  % Change  $'s 
         
Net sales (GAAP)$5,550,666   7.7% $5,153,237 
Adjustments:        
Change in revenue recognition method for Nuuly (a) —      5,456 
Adjusted net sales (Non-GAAP)$5,550,666   7.6% $5,158,693 
         
         
Reconciliation of Subscription Segment Adjusted Net Sales:        
 Three Months Ended
 January 31,
 2025  2024
 $'s  % Change  $'s 
         
Net sales (GAAP)$112,524   78.4% $63,080 
Adjustments:        
Change in revenue recognition method for Nuuly (a) —      9,229 
Adjusted net sales (Non-GAAP)$112,524   55.6% $72,309 
         
 Twelve Months Ended
 January 31,
 2025  2024
 $'s  % Change  $'s 
         
Net sales (GAAP)$378,394   60.4% $235,859 
Adjustments:        
Change in revenue recognition method for Nuuly (a) —      5,456 
Adjusted net sales (Non-GAAP)$378,394   56.8% $241,315 
         


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 
 January 31, 
 2025  2024 
 $'s % of Net Sales  $'s % of Net Sales % of Adj. Net Sales 
            
Gross profit (GAAP)$527,681  32.3% $434,185  29.2%  
Adjustments:           
Change in revenue recognition method for Nuuly (a) —     7,220     
Store impairment and lease abandonment charges (b) —     10,483     
Adjusted gross profit (Non-GAAP)$527,681  32.3% $451,888    30.2%
            
 Twelve Months Ended 
 January 31, 
 2025  2024 
 $'s % of Net Sales  $'s % of Net Sales % of Adj. Net Sales 
            
Gross profit (GAAP)$1,926,670  34.7% $1,715,404  33.3%  
Adjustments:           
Change in revenue recognition method for Nuuly (a) —     4,268     
Store impairment and lease abandonment charges (b) 4,601     11,875     
Adjusted gross profit (Non-GAAP)$1,931,271  34.8% $1,731,547    33.6%
            


URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)
            
Reconciliation of Total Company Adjusted Income from Operations:           
 Three Months Ended 
 January 31, 
 2025  2024 
 $'s % of Net Sales  $'s % of Net Sales % of Adj. Net Sales 
            
Income from operations (GAAP)$125,314  7.7% $57,336  3.9%  
Adjustments:           
Change in revenue recognition method for Nuuly (a) —     7,220     
Store impairment and lease abandonment charges (b) —     10,483     
Asset impairment charge (c) —     6,404     
Adjusted income from operations (Non-GAAP)$125,314  7.7% $81,443    5.4%
            
 Twelve Months Ended 
 January 31, 
 2025  2024 
 $'s % of Net Sales  $'s % of Net Sales % of Adj. Net Sales 
            
Income from operations (GAAP)$473,764  8.5% $369,795  7.2%  
Adjustments:           
Change in revenue recognition method for Nuuly (a) —     4,268     
Store impairment and lease abandonment charges (b) 4,601     11,875     
Asset impairment charge (c) —     6,404     
Adjusted income from operations (Non-GAAP)$478,365  8.6% $392,342    7.6%
                


URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)
     
Reconciliation of Total Company Adjusted Income Tax Expense and Adjusted Effective Tax Rate:
 Three Months Ended
 January 31,
 2025 2024
 $'s  $'s
     
Income before income taxes (GAAP)$130,906  $64,025 
Adjustments:    
Change in revenue recognition method for Nuuly (a) —   7,220 
Store impairment and lease abandonment charges (b) —   10,483 
Asset impairment charge (c) —   6,404 
Adjusted income before income taxes (Non-GAAP)$130,906  $88,132 
     
Income tax expense (GAAP)$10,605  $16,274 
Adjustments:    
Provision for income taxes on adjustments (d) —   6,054 
Release of income tax reserves (e) 22,172   — 
Adjusted income tax expense (Non-GAAP)$32,777  $22,328 
     
Effective income tax rate (GAAP) 8.1%  25.4% 
Adjustments16.9  (0.1)
Adjusted effective income tax rate (Non-GAAP) 25.0%  25.3% 
     
 Twelve Months Ended
 January 31,
 2025 2024
 $'s  $'s
     
Income before income taxes (GAAP)$500,172  $381,607 
Adjustments:    
Change in revenue recognition method for Nuuly (a) —   4,268 
Store impairment and lease abandonment charges (b) 4,601   11,875 
Asset impairment charge (c) —   6,404 
Adjusted income before income taxes (Non-GAAP)$504,773  $404,154 
     
Income tax expense (GAAP)$97,710  $93,933 
Adjustments:    
Provision for income taxes on adjustments (d) 966   5,663 
Release of income tax reserves (e) 22,172   — 
Adjusted income tax expense (Non-GAAP)$120,848  $99,596 
     
Effective income tax rate (GAAP) 19.5%  24.6% 
Adjustments4.4  0.0 
Adjusted effective income tax rate (Non-GAAP) 23.9%  24.6% 
        


URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)
               
Reconciliation of Total Company Adjusted Net Income and Adjusted Diluted EPS:    
 Three Months Ended 
 January 31, 
 2025  2024 
 $'s  % of Net Sales  $'s  % of Net Sales  % of Adj. Net Sales 
               
Net income (GAAP)$120,301   7.4% $47,751   3.2%   
Adjustments:              
Change in revenue recognition method for Nuuly (a) —      7,220       
Store impairment and lease abandonment charges (b) —      10,483       
Asset impairment charge (c) —      6,404       
Provision for income taxes on adjustments (d) —      (6,054)      
Release of income tax reserves (e) (22,172)     —       
Adjusted net income (Non-GAAP)$98,129   6.0% $65,804      4.4%
               
Diluted EPS (GAAP)$1.28     $0.50       
Adjustments, net of tax (0.24)     0.19       
Adjusted diluted EPS (Non-GAAP)$1.04     $0.69       
               
 Twelve Months Ended 
 January 31, 
 2025  2024 
 $'s  % of Net Sales  $'s  % of Net Sales  % of Adj. Net Sales 
               
Net income (GAAP)$402,462   7.3% $287,674   5.6%   
Adjustments:              
Change in revenue recognition method for Nuuly (a) —      4,268       
Store impairment and lease abandonment charges (b) 4,601      11,875       
Asset impairment charge (c) —      6,404       
Provision for income taxes on adjustments (d) (966)     (5,663)      
Release of income tax reserves (e) (22,172)     —       
Adjusted net income (Non-GAAP)$383,925   6.9% $304,558      5.9%
               
Diluted EPS (GAAP)$4.26     $3.05       
Adjustments, net of tax (0.20)     0.18       
Adjusted diluted EPS (Non-GAAP)$4.06     $3.23       
               
(a) During the three months ended January 31, 2024, the Company changed the revenue recognition method for Nuuly from recognizing the monthly subscription fee revenue in the period the customer is billed to recognizing over the monthly period over which the customer’s subscription fee pertains. The Company also changed the period over which it amortizes rental product to align with the change in revenue recognition method. The impact for the three months ended January 31, 2024, was a reduction in “Net sales” of $9,229 and a reduction in “Cost of sales” of $2,009, resulting in a net reduction of $7,220 in “Gross profit.” The impact for the year ended January 31, 2024 was a reduction in "Net sales" of $5,456 and a reduction in "Cost of sales" of $1,188, resulting in a net reduction of $4,268 in "Gross profit." 
               
(b) Store impairment charges relate to one retail location during the twelve months ended January 31, 2025, and 11 and 15 retail locations during the three and twelve months ended January 31, 2024, respectively. The Company also recorded lease abandonment charges for one retail location during the twelve months ended January 31, 2025 and two retail locations during the three months ended January 31, 2024. 
               
(c) The asset impairment charge relates to the write-off of “Property and equipment, net” of the Nuuly Thrift marketplace during the three and twelve months ended January 31, 2024, which the Company wound down in fiscal 2025. 
               
(d) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments. 
               
(e) The Company recorded a one-time tax benefit for the release of a portion of our income tax reserves as a result of a lapse of the statute of limitations for federal tax purposes. 
               

FAQ

What was Urban Outfitters (URBN) Q4 2025 revenue and how much did it grow?

URBN's Q4 2025 revenue reached a record $1.64 billion, representing a 10.1% increase compared to the previous year.

How did URBN's different segments perform in Q4 2025?

Retail segment grew 6.3%, Subscription segment increased 78.4%, and Wholesale segment rose 26.2%.

What were URBN's comparable sales by brand in Q4 2025?

Anthropologie increased 8.3%, Free People grew 8.0%, while Urban Outfitters decreased 3.5%.

How many stores did URBN open and close in fiscal year 2025?

URBN opened 57 new stores (37 Free People, 13 Anthropologie, 7 Urban Outfitters) and closed 30 locations.

What was URBN's net income for full fiscal year 2025?

URBN achieved record net income of $402.5 million ($4.26 per share) for FY 2025.

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Urban Outfitter

NASDAQ:URBN

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URBN Latest News

Jan 13, 2025
URBN Reports Record Holiday Sales
Nov 26, 2024
URBN Reports Record Q3 Sales and Earnings
Aug 21, 2024
URBN Reports Record Q2 Sales
May 21, 2024
URBN Reports Record Q1 Sales and Earnings
Feb 27, 2024
URBN Reports Record Q4 Sales and Strong Earnings Growth

URBN Stock Data

5.28B
62.18M
32.67%
75.12%
5.89%
Apparel Retail
Retail-family Clothing Stores
Link
United States
PHILADELPHIA