Market Overview - Market indices began flat but rose due to expectations of easing Fed funds rates, with Kevin Hassett being a frontrunner for Fed Chair [1] - The Dow increased by 664 points (+1.43%), while the Russell 2000 saw a gain of +2.14%, S&P 500 rose +0.91%, and Nasdaq increased +0.67% [2] Housing Market Data - Case-Shiller Home Prices for September rose by +1.3%, following a revised +1.4% the previous month, marking the fourth consecutive month where home prices lagged behind inflation [3][4] - Pending Home Sales increased by +1.9% month over month in October, up from a revised +0.10% the prior month, although still down -0.40% year over year [5] Economic Indicators - Consumer Confidence index dropped significantly to 88.7 from 95.5, the lowest since April [6] - Business Inventories for August remained unchanged at 0.0%, marking the third consecutive month without change [7] Earnings Reports - Urban Outfitters (URBN) reported earnings of $1.28 per share, exceeding expectations of $1.19, with revenues of $1.53 billion [9] - Dell Technologies (DELL) reported Q3 earnings of $2.59 per share, beating estimates, but revenues of $27.01 billion fell short of expectations [10] - Hewlett Packard (HPQ) shares fell -5% due to a revenue miss, reporting earnings of 93 cents per share against expectations, with sales of $14.64 billion below projections [11]

Core Insights - Urban Outfitters (URBN) reported quarterly earnings of $1.28 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and showing an increase from $1.1 per share a year ago, resulting in an earnings surprise of +7.56% [1] - The company achieved revenues of $1.53 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.43% and up from $1.36 billion year-over-year [2] - Urban Outfitters has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +9.72%, with actual earnings of $1.58 per share compared to an expected $1.44 per share [1] - The current consensus EPS estimate for the upcoming quarter is $1.34, with projected revenues of $1.77 billion, and for the current fiscal year, the EPS estimate is $5.24 on revenues of $6.1 billion [7] Stock Performance and Outlook - Urban Outfitters shares have increased by approximately 13.4% since the beginning of the year, compared to a 14% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the industry, particularly the Retail - Apparel and Shoes sector, is favorable, ranking in the top 24% of over 250 Zacks industries [8]

Financial Data and Key Metrics Changes - Total revenues grew by 12%, reaching a record $1.5 billion for Q3 [6][4] - Net income increased by 13% to a new Q3 record of $116 million, or $1.28 per diluted share [6][8] - Gross profit dollars rose by 13% to $563 million, with a gross profit rate improvement of 31 basis points to 36.8% [7][8] - Operating income increased by over 12% to $144 million, maintaining the operating profit rate consistent with the prior year [8] Business Line Data and Key Metrics Changes - Free People brand revenue increased by 9%, driven by a 9% increase in retail segment sales and an 8% increase in wholesale segment revenues [9][10] - Urban Outfitters brand recorded a strong 13% global retail segment comp, with North America at 10% and Europe at 17% [11][12] - Nuuly brand revenue grew by 49%, driven by a 40% increase in average active subscribers [14][15] - Anthropologie Group achieved an 8% retail segment comparable sales increase, marking the 19th consecutive quarter of positive comparable sales [18][19] Market Data and Key Metrics Changes - All brands produced positive comps across all geographies, with Urban brand generating double-digit comps in North America and Europe [4][6] - The wholesale segment delivered an 8% increase in revenue, primarily from specialty store accounts [7] Company Strategy and Development Direction - The company is focused on scaling the Nuuly business and building brand awareness through investments in logistics and strategic marketing [15] - There is a commitment to maintaining opening price points and protecting the integrity of product pricing while managing costs [40][41] - The Anthropologie Group is modernizing its product assortment and investing in own brands to drive growth [20][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record sales and operating profit for the year, despite tariff headwinds [16][17] - The company anticipates a competitive holiday season but expects to maintain improved operating margins compared to the previous year [34] - November traffic and sales are running slightly ahead of the stated Q4 plan, indicating a positive outlook [33] Other Important Information - The company plans to open approximately 69 new stores and close about 17 this year, with significant growth expected from FP Movement, Free People, and Anthropologie [30] - Tariffs are expected to impact gross margin rates, with ongoing mitigation efforts in place [16][29] Q&A Session Summary Question: Follow-up on pricing strategy and customer reaction - Management indicated that small price increases have seen little to no resistance, with a focus on maintaining opening price points [39][40] Question: Own brand penetration and global footprint - Own brand penetration has increased significantly, with plans for continued growth and expansion in the U.K. and North America [47][48] Question: Urban Outfitters brand profitability - Urban Outfitters achieved profitability in Europe and reduced losses in North America, with potential for global profitability next year [55] Question: Drivers of business acceleration and holiday trends - Increased traffic in stores and online is driving sales growth, with expectations for a strong holiday season despite a more promotional environment [60][61] Question: Gross margins and promotional expectations - Management maintains guidance for gross profit margin improvement despite anticipated promotions during the holiday season [75] Question: Long-term EBIT margin targets - The company targets a long-term EBIT margin of 10%, with several growth opportunities identified across brands [78][79]

Financial Data and Key Metrics Changes - Total revenues grew by 12%, reaching a record $1.5 billion for Q3 [6][4] - Net income increased by 13% to a new Q3 record of $116 million, or $1.28 per diluted share [8][4] - Gross profit increased by 13% to $563 million, with a gross profit rate of 36.8% [7][8] - SG&A expenses rose by 14%, leading to a deleveraging of 32 basis points [7][8] Business Line Data and Key Metrics Changes - Free People brand revenue increased by 9%, driven by a 9% increase in retail segment sales and an 8% increase in wholesale segment revenues [9][10] - Urban Outfitters brand recorded a 13% global retail segment comp, with North America at 10% and Europe at 17% [11][12] - Nuuly brand revenue grew by 49%, driven by a 40% increase in average active subscribers [14][15] Market Data and Key Metrics Changes - The wholesale segment saw an 8% increase in revenue, primarily from specialty store accounts [7][8] - European operations for Free People delivered double-digit retail segment comps, indicating strong market performance [9][10] - Urban Outfitters achieved positive double-digit comps across all major product categories in Europe [13][14] Company Strategy and Development Direction - The company aims to deliver record sales and operating profit for the year, with a focus on maintaining gross and operating profit margin improvements despite tariff headwinds [16][17] - Strategic investments in logistics and marketing for Nuuly are expected to continue driving subscriber growth [15][16] - The Anthropologie Group is focusing on product modernization and customer growth, with plans to open new stores and enhance digital capabilities [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in consumer behavior, with customers waiting longer for promotions, which is expected to impact holiday sales [34][35] - The company anticipates a competitive holiday season but remains optimistic about achieving improved operating margins [34][35] - Management expressed confidence in the diversified business model's ability to grow market share regardless of the operating environment [33][34] Other Important Information - The company plans to open approximately 69 new stores and close about 17 this year, with significant growth expected from FP Movement, Free People, and Anthropologie [30][31] - Tariffs are expected to impact gross margins, with estimates of a 60 basis point impact in Q3 and 75 basis points in Q4 [15][16] Q&A Session Summary Question: Follow-up on pricing strategy and customer reaction - Management stated that small price increases have been implemented strategically, with little to no price resistance observed [39][40] Question: Own brand penetration and global footprint for Anthropologie - Own brand penetration has increased by over 100 basis points, with plans for continued growth and expansion in the U.K. [47][48] Question: Urban Outfitters brand profitability outlook - Urban Outfitters is expected to continue improving profitability, with a focus on reducing losses in North America [55][56] Question: Drivers of business acceleration and holiday selling trends - Increased traffic in stores and online has driven sales growth, with expectations for a strong holiday season despite promotional pressures [60][61] Question: Nuuly customer demographics and sales trends - Nuuly has seen a slight shift towards younger subscribers, with stable demographics overall [68][69]

Financial Data and Key Metrics Changes - Total revenues grew by 12%, reaching a record $1.5 billion for Q3 [5][6] - Net income increased by 13% to a new Q3 record of $116 million, or $1.28 per diluted share [7][6] - Gross profit increased by 13% to $563 million, with a gross profit rate of 36.8% [6][7] - SG&A expenses rose by 14%, leading to a deleveraging of 32 basis points [6][7] Business Line Data and Key Metrics Changes - Free People brand revenue increased by 9%, driven by a 4% retail segment comp and significant non-comp sales growth [8][9] - Urban Outfitters brand recorded a 13% global retail segment comp, with North America at 10% and Europe at 17% [10][12] - Nuuly brand revenue grew by 49%, driven by a 40% increase in average active subscribers [14][15] Market Data and Key Metrics Changes - The wholesale segment saw an 8% revenue increase, primarily from specialty store accounts [6][7] - European operations for Urban Outfitters delivered double-digit retail segment comps, indicating strong market performance [12][13] Company Strategy and Development Direction - The company aims to continue scaling the Nuuly business and building brand awareness through logistics and marketing investments [14][15] - There is a focus on maintaining opening price points and strategic pricing to protect customer value [33][34] - The Anthropologie Group is investing in its own brands, which have shown strong growth and customer affinity [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record sales and operating profit for the year, despite tariff headwinds [16][17] - The company anticipates a competitive holiday season but expects to maintain improved operating margins [31][32] - There is a recognition of changing consumer behavior, with customers waiting for promotions, which is seen as a return to pre-pandemic shopping habits [54][55] Other Important Information - The company plans to open approximately 69 new stores and close about 17 this year, with significant expansion in the FP Movement and Free People brands [27][28] - Tariffs are expected to impact gross margins, but the company is actively working on mitigation strategies [16][26] Q&A Session Summary Question: Follow-up on pricing strategy and customer reaction - Management stated that small price increases have seen little to no resistance, and they remain committed to protecting opening price points [33][34] Question: Own brand penetration and global footprint - Own brand penetration has increased by nearly 100 basis points, with plans for continued growth and expansion in the U.K. [37][38] Question: Urban Outfitters brand profitability - Urban Outfitters achieved profitability in Q3, driven by strong performance in Europe and reduced losses in North America [39][40] Question: Drivers of business acceleration - Increased traffic in stores and online was identified as a key driver of sales growth, with expectations for a strong holiday season [40][41] Question: Long-term EBIT margin targets - The company aims for a long-term EBIT margin of 10%, with ongoing opportunities for improvement across brands [49][50]

Market Overview - The trading day ended with the Dow Jones Industrial Average up more than 600 points, a 1.4% increase, and the S&P 500 rising over 60 points, or 0.9% [6] - The Nasdaq composite finished higher by about 0.7%, with small and mid-cap stocks, particularly the Russell 2000, outperforming, up 2% [7] - Overall, 426 names in the S&P 500 gained ground, while only 74 declined, indicating strong market breadth [8] Company Performance - Alphabet shares have seen a significant year-to-date gain of approximately 70%, outperforming many competitors [5] - Autodesk reported a third-quarter EPS of $2.67, beating expectations of $2.50, with net revenue of $1.85 billion, slightly above the forecast of $1.81 billion [11] - Workday's after-hours share price increased by about 7% after it raised its full-year subscription revenue forecast, projecting fourth-quarter subscription revenue of $2.36 billion, above the estimate of $2.35 billion [13] - NetApp shares surged by 4% in after-hours trading after the company boosted its fiscal year adjusted EPS forecast and reported third-quarter net revenue expectations of $1.77 billion, exceeding estimates [15] - Urban Outfitters saw a significant increase in share price, up 9% in regular trading and 16% in after-hours, with third-quarter comp retail segment sales up 8%, surpassing the 5% estimate [25] Sector Insights - The technology sector experienced mixed results, with Alphabet hitting an all-time high while Nvidia shares fell by 2.6% [9][20] - Retailers showed strong performance, with Abercrombie and Fitch gaining about 36-37% after raising its 2026 net sales and EPS guidance [17] - Dell raised its full-year adjusted EPS outlook to $9.92, up from $9.55, and increased revenue guidance to a range of $11.2 billion to $12.2 billion [22][24]

Core Insights - Urban Outfitters, Inc. reported strong third-quarter earnings, surpassing both revenue and earnings estimates, leading to a significant increase in stock price [1][2][4] Financial Performance - Quarterly earnings per share were $1.28, exceeding the Street estimate of $1.18 by 8.11% [2] - Total quarterly revenue reached $1.53 billion, beating the analyst estimate of $1.47 billion and showing an increase from $1.36 billion in the same period last year [2] Segment Performance - Total Retail segment net sales increased by 9.6%, with comparable Retail segment net sales rising by 8% [5] - Comparable Retail segment net sales growth was 12.5% at Urban Outfitters, 7.6% at Anthropologie, and 4.1% at Free People [5] - Subscription segment net sales surged by 48.7%, driven by a 42.2% increase in average active subscribers compared to the prior year [5] - Wholesale segment net sales grew by 7.6%, primarily due to an 8.4% increase in Free People wholesale sales [5] Market Reaction - Following the earnings report, Urban Outfitters' stock price increased by 15.06%, reaching $78.60 in extended trading [4]

Urban Outfitters, Inc. FY'26 Q3 RESULTS Introduction Urban Outfitters, Inc. "URBN" is providing fiscal 2026 third quarter commentary ahead of our earnings call scheduled for November 25th at 5:00pm. We remind you that any forward-looking statements made in this commentary are subject to our safe harbor statement found in our SEC filings. Our third quarter earnings release and related financial information are available on our website, www.urbn.com. As used in this document, unless otherwise defined,"Anthrop ...

Core Insights - The apparel and home goods retailer reported increased earnings and revenue for the third quarter [1] Financial Performance - The company achieved higher earnings in the third quarter compared to previous periods [1] - Revenue also saw an upward trend during the same quarter [1]

The clothing retailer's third-quarter results topped estimates, and management said it picked up a bigger share of the apparel market. ...