US' Urban Outfitters sees record FY25, driven by retail, subscription

For Q4 2025, adjusted net income stood at $98.1 million, up from $65.8 million in Q4 2024. Adjusted earnings per diluted share also increased from $0.69 to $1.04. The company’s full-year adjusted net income climbed to $383.9 million, reflecting a substantial increase from $304.6 million in the prior year, with adjusted earnings per diluted share rising from $3.23 to $4.06.

Total company net sales in Q4 reached a record $1.64 billion, marking a 10.1 per cent increase compared to the previous year. Over the full fiscal, net sales surged 7.7 per cent to an unprecedented $5.55 billion, the company said in a media release.

The company’s retail segment posted a 6.3 per cent increase in net sales for Q4, driven by a 5.1 per cent rise in comparable retail segment sales. Digital sales saw high single-digit growth, while retail store sales experienced low single-digit gains. Anthropologie and Free People performed strongly, with comparable sales increasing by 8.3 per cent and 8.0 per cent, respectively. However, Urban Outfitters’ sales saw a 3.5 per cent decline.

The subscription segment recorded a remarkable 78.4 per cent year-over-year growth in Q4, driven by a 53.5 per cent increase in average active subscribers. Compared to adjusted subscription segment net sales in Q4 2024, the segment grew by 55.6 per cent.

Wholesale segment sales also saw a strong 26.2 per cent growth in Q4, largely due to a 27.0 per cent increase in Free People wholesale sales, which benefitted from higher demand from specialty customers and department stores.

For the full fiscal, retail segment net sales grew 4.7 per cent, with comparable sales rising 3.4 per cent. Subscription segment net sales soared 60.4 per cent, while wholesale segment net sales grew 15.5 per cent.

“We are pleased to announce record Q4 revenues and full-year profits,” said Richard A Hayne, chief executive officer of Urban Outfitters. “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.”

With robust financial performance and strong growth across its key business segments, Urban Outfitters is poised for continued expansion in the coming fiscal. The company remains focused on enhancing its digital presence, expanding its subscription base, and strengthening its wholesale partnerships to sustain its upward momentum, the release added.

ALCHEMPro News Desk (KD)