Three Months Ended Six Months Ended July 31, July 31, 2025 2024 2025 2024Net sales by brand Anthropologie$606,954 $569,100 $1,176,885 $1,095,485Free People 415,014 365,129 768,126 683,820Urban Outfitters 333,171 316,715 606,676 586,973Nuuly 138,932 90,696 263,286 168,638Menus & Venues 10,684 10,319 19,283 17,775Total Company $ 1,504,755 $ 1,351,959 $ 2,834,256 $ 2,552,691 Net sales by segment Retail Segment$1,289,269 $1,196,456 $2,419,779 $2,259,141Subscription Segment 138,932 90,696 263,286 168,638Wholesale Segment 76,554 64,807 151,191 124,912Total Company $ 1,504,755 $ 1,351,959 $ 2,834,256 $ 2,552,691 For the three months ended July 31, 2025, the gross profit rate increased by 113 basis points compared to the three months ended July 31, 2024, and gross profit dollars increased 14.8% to $566.2 million from $493.3 million. The increase in gross profit rate was primarily due to improved Retail segment markdowns primarily driven by lower markdowns at the Urban Outfitters brand and leverage in occupancy costs due to the increase in comparable Retail segment and Subscription segment net sales. The increase in gross profit dollars was due to higher net sales and the improved gross profit rate.
For the six months ended July 31, 2025, the gross profit rate increased by 191 basis points compared to the six months ended July 31, 2024, and gross profit dollars increased 17.0% to $1.06 billion from $901.7 million. The gross profit rate benefited from a non-recurring gain of $4.8 million, or 17 basis points, recorded in the first quarter of fiscal 2026 and store impairment and lease abandonment charges of $4.6 million, or 18 basis points, recorded in the first quarter of fiscal 2025 not repeated in the current year period. The remaining 156 basis point increase in gross profit rate was primarily due to improved Retail segment markdowns primarily driven by lower markdowns at the Urban Outfitters brand and leverage in occupancy costs due to the increase in comparable Retail segment and Subscription segment net sales. The increase in gross profit dollars was due to higher net sales and the improved gross profit rate.
As of July 31, 2025, total inventory increased by $91.5 million, or 15.1%, compared to total inventory as of July 31, 2024. Total Retail segment inventory increased by 15.0% and comparable Retail segment inventory increased by 11.3%. Wholesale segment inventory increased by 16.4%. The increase in inventory for both segments was due to increased sales and planned early receipts of merchandise.
For the three months ended July 31, 2025, selling, general and administrative expenses increased by $43.6 million, or 12.5%, compared to the three months ended July 31, 2024. Selling, general and administrative expenses deleveraged 28 basis points as a percentage of net sales compared to the three months ended July 31, 2024. The deleverage in selling, general and administrative expenses as a percentage of 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.
For the six months ended July 31, 2025, selling, general and administrative expenses increased by $70.7 million, or 10.4%, compared to the six months ended July 31, 2024. Selling, general and administrative expenses leveraged 16 basis points as a percentage of net sales compared to the six months ended July 31, 2024. The leverage in selling, general and administrative expenses as a percentage of net sales was primarily related to lower litigation expenses in the current year period as compared to the prior year period. 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 July 31, 2025, was 21.5%, compared to 23.0% in the three months ended July 31, 2024. The Company’s effective tax rate for the six months ended July 31, 2025, was 21.5%, compared to 23.2% in the six months ended July 31, 2024. The decrease in the effective tax rate for the three and six months ended July 31, 2025, was primarily attributable to the ratio of foreign taxable earnings to global taxable earnings and the release of certain state and local valuation allowances.
Net income for the three months ended July 31, 2025, was a record $143.9 million and earnings per diluted share were $1.58. Net income for the six months ended July 31, 2025, was a record $252.2 million and earnings per diluted share were $2.73.
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, 2025, the Company repurchased and subsequently retired 3.3 million shares for approximately $152 million. During the twelve months ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of July 31, 2025, 14.7 million common shares were remaining under the program.
During the six months ended July 31, 2025, the Company opened a total of 27 new retail locations including: 19 Free People stores (including 10 FP Movement stores), 4 Anthropologie stores and 4 Urban Outfitters stores; and closed 4 retail locations including: 2 Free People stores and 2 Urban Outfitters stores.
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 257 Urban Outfitters stores in the United States, Canada and Europe and websites; 247 Free People stores (including 73 FP Movement stores) in the United States, Canada and Europe, catalogs and websites; 243 Anthropologie 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 July 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 second quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/itmnjypu/.
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, 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.
(Tables follow)
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, 2025 2024 2025 2024 Net sales$1,504,755 $1,351,959 $2,834,256 $2,552,691 Cost of sales (excluding store impairment and lease abandonment charges) 938,594 858,674 1,779,031 1,646,420 Store impairment and lease abandonment charges — — — 4,601 Gross profit 566,161 493,285 1,055,225 901,670 Selling, general and administrative expenses 391,774 348,150 752,611 681,911 Income from operations 174,387 145,135 302,614 219,759 Other income, net 8,886 7,429 18,532 13,675 Income before income taxes 183,273 152,564 321,146 233,434 Income tax expense 39,408 35,079 68,934 54,184 Net income $ 143,865 $ 117,485 $ 252,212 $ 179,250 Net income per common share: Basic $ 1.60 $ 1.26 $ 2.78 $ 1.93 Diluted $ 1.58 $ 1.24 $ 2.73 $ 1.89 Weighted-average common shares outstanding: Basic 89,667,451 93,071,401 90,692,646 93,097,694 Diluted 91,167,981 94,684,003 92,304,624 94,842,065 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) 62.4% 63.5% 62.8% 64.5%Store impairment and lease abandonment charges — — — 0.2% Gross profit 37.6% 36.5% 37.2% 35.3%Selling, general and administrative expenses 26.0% 25.8% 26.5% 26.7% Income from operations 11.6% 10.7% 10.7% 8.6%Other income, net 0.6% 0.6% 0.6% 0.5% Income before income taxes 12.2% 11.3% 11.3% 9.1%Income tax expense 2.6% 2.6% 2.4% 2.1% Net income 9.6% 8.7% 8.9% 7.0% URBAN OUTFITTERS, INC. Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited) July 31, January 31, July 31, 2025 2025 2024 ASSETS Current assets: Cash and cash equivalents$332,171 $290,481 $209,129 Marketable securities 290,664 319,949 352,360 Accounts receivable, net of allowance for doubtful accounts of $2,388, $1,384 and $1,429, respectively 86,922 74,014 78,749 Inventory 696,199 621,146 604,667 Prepaid expenses and other current assets 213,356 187,206 228,966 Total current assets 1,619,312 1,492,796 1,473,871 Property and equipment, net 1,376,811 1,331,077 1,314,923 Operating lease right-of-use assets 1,011,840 942,666 941,404 Marketable securities 366,336 410,208 209,469 Other assets 336,494 342,733 319,156 Total Assets $ 4,710,793 $ 4,519,480 $ 4,258,823 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable$335,985 $295,767 $299,351 Current portion of operating lease liabilities 227,105 227,149 227,987 Accrued expenses, accrued compensation and other current liabilities 533,058 552,763 483,080 Total current liabilities 1,096,148 1,075,679 1,010,418 Non-current portion of operating lease liabilities 953,025 871,209 875,174 Other non-current liabilities 81,228 101,088 131,798 Total Liabilities 2,130,401 2,047,976 2,017,390 Shareholders’ equity: Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued — — — Common shares; $.0001 par value, 200,000,000 shares authorized, 89,696,293, 92,281,748 and 92,260,283 shares issued and outstanding, respectively 9 9 9 Additional paid-in-capital 7,277 15,067 — Retained earnings 2,604,741 2,503,068 2,279,856 Accumulated other comprehensive loss (31,635) (46,640) (38,432) Total Shareholders’ Equity 2,580,392 2,471,504 2,241,433 Total Liabilities and Shareholders’ Equity $ 4,710,793 $ 4,519,480 $ 4,258,823 URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited) Six Months Ended July 31, 2025 2024 Cash flows from operating activities: Net income$252,212 $179,250 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 61,400 56,552 Non-cash lease expense 106,546 103,146 Provision for deferred income taxes 11,608 9,208 Share-based compensation expense 14,956 15,556 Amortization of tax credit investment 8,587 8,760 Store impairment and lease abandonment charges — 4,601 Loss on disposition of property and equipment, net 262 420 Changes in assets and liabilities: Receivables (12,025) (11,606) Inventory (70,611) (54,050) Prepaid expenses and other assets (25,095) (48,318) Payables, accrued expenses and other liabilities 23,336 16,858 Operating lease liabilities (120,130) (116,563) Net cash provided by operating activities 251,046 163,814 Cash flows from investing activities: Cash paid for property and equipment (107,549) (98,854) Cash paid for marketable securities (220,293) (166,428) Sales and maturities of marketable securities 295,861 204,145 Net cash used in investing activities (31,981) (61,137) Cash flows from financing activities: Proceeds from the exercise of stock options 928 851 Share repurchases related to share repurchase program (151,935) (52,262) Share repurchases related to taxes for share-based awards (21,144) (14,977) Tax credit investment liability payments (8,437) (2,713) Net cash used in financing activities (180,588) (69,101) Effect of exchange rate changes on cash and cash equivalents 3,213 (2,768) Increase in cash and cash equivalents 41,690 30,808 Cash and cash equivalents at beginning of period 290,481 178,321 Cash and cash equivalents at end of period $ 332,171 $ 209,129 Contact: Oona McCullough Executive Director of Investor Relations (215) 454-4806