US' Urban Outfitters posts strong 9-month gains, record Q3 profit

Urban Outfitters, Inc has reported a robust nine-month performance for the period ended October 31, 2025, with total company net sales rising 11.5 per cent to a record $4.36 billion.

Growth was broad-based across the retail segment, where both store and digital channels delivered mid-single-digit comparable increases. Anthropologie, Urban Outfitters and Free People all posted solid gains, while Nuuly continued to be the company’s fastest-growing business.

Subscription segment revenue surged 53.4 per cent, driven by a 47.3 per cent rise in average active subscribers. Wholesale segment net sales also advanced 15.7 per cent, supported by a 16.8 per cent increase in Free People wholesale demand, particularly from specialty customers.

Gross profit dollars increased 15.7 per cent to $1.62 billion over the nine-month period. The gross profit rate expanded by 135 basis points due to lower markdowns at Urban Outfitters and Free People and improved occupancy leverage. Selling, general and administrative (SG&A) expenses rose 11.5 per cent.

The strong year-to-date performance was followed by another record quarter. For the three months (Q3) ended October 31, 2025, net sales rose 12.3 per cent to an all-time high of $1.53 billion. Comparable Retail segment sales increased 8 per cent, fuelled by high single-digit growth in both digital and store channels, the company said in a financial release.

Urban Outfitters delivered the strongest brand performance with comps up 12.5 per cent, followed by Anthropologie at 7.6 per cent and Free People at 4.1 per cent. Subscription revenue climbed 48.7 per cent, while Wholesale segment sales grew 7.6 per cent on continued strength in Free People wholesale shipments.

Quarterly profitability also improved. Gross profit rose 13.3 per cent to $563.3 million, with gross margin expanding by 31 basis points. SG&A expenses increased 13.7 per cent, reflecting elevated marketing spend, and deleveraged 32 basis points. Net income reached a quarterly record of $116.4 million, with earnings per diluted share of $1.28.

The company expanded its retail footprint, opening 41 new stores—25 Free People, 9 Anthropologie and 7 Urban Outfitters—and closing 6 locations.

“We are pleased to report record revenues, profits, and earnings per share for the quarter. Trends observed last quarter have remained consistent with broad-based comparable sales growth and robust results in the retail, subscription, and wholesale segments. These results underscore the strength of our diversified business model, which enables us to continue capturing market share, and drive consistent long-term growth,” said Richard A Hayne, chief executive officer.

ALCHEMPro News Desk (HU)