URBN Reports Record Q1 Sales and Income

Core Insights - Urban Outfitters, Inc. reported record net income of $108.3 million and earnings per diluted share of $1.16 for the three months ended April 30, 2025 [1][7] - Total company net sales increased by 10.7% to a record $1.33 billion during the same period [2] Financial Performance - Retail segment net sales rose by 6.4%, with comparable retail segment net sales increasing by 4.8% [2] - Subscription segment net sales surged by 59.5%, driven by a 52.9% increase in average active subscribers [2] - Wholesale segment net sales increased by 24.2%, primarily due to a 25.6% rise in Free People wholesale sales [2] - Gross profit increased by 19.8% to $489.1 million, with a gross profit rate improvement of 278 basis points compared to the previous year [3] Brand Performance - Net sales by brand for the three months ended April 30, 2025: - Anthropologie: $569.9 million (up from $526.4 million) - Free People: $353.1 million (up from $318.7 million) - Urban Outfitters: $273.5 million (up from $270.3 million) - Nuuly: $124.4 million (up from $77.9 million) [3] Inventory and Expenses - Total inventory increased by $84.8 million, or 14.6%, compared to the previous year [4] - Selling, general and administrative expenses rose by $27.1 million, or 8.1%, but leveraged 65 basis points as a percentage of net sales [5][6] Tax and Share Repurchase - The effective tax rate decreased to 21.4% from 23.6% year-over-year [7] - The company repurchased 3.3 million shares for approximately $152 million during the three months ended April 30, 2025 [8] Store Expansion - The company opened 13 new retail locations, including 9 Free People stores, 2 Anthropologie stores, and 2 Urban Outfitters stores [9]