URBN Reports Record Q3 Sales and Income

Core Insights - Urban Outfitters, Inc. reported record net income of $116.4 million and earnings per diluted share of $1.28 for the three months ended October 31, 2025, with a total net income of $368.7 million and earnings per diluted share of $4.01 for the nine months ended October 31, 2025 [1][11]. Financial Performance - Total Company net sales for the three months ended October 31, 2025, increased by 12.3% to a record $1.53 billion, while net sales for the nine months increased by 11.5% to $4.36 billion [2][3]. - Retail segment net sales increased by 9.6% for the three months and 8.0% for the nine months, with comparable Retail segment net sales rising by 8.0% [2][3]. - Subscription segment net sales surged by 48.7% for the three months and 53.4% for the nine months, driven by a significant increase in average active subscribers [2][3]. Segment Performance - Comparable Retail segment net sales growth was driven by Urban Outfitters (12.5%), Anthropologie (7.6%), and Free People (4.1%) for the three months ended October 31, 2025 [2]. - For the nine months, comparable Retail segment net sales increased by 6.8% at Anthropologie, 6.4% at Urban Outfitters, and 4.7% at Free People [3]. Profitability Metrics - Gross profit for the three months ended October 31, 2025, increased by 13.3% to $563.3 million, with a gross profit rate improvement of 31 basis points [6][7]. - For the nine months, gross profit dollars rose by 15.7% to $1.62 billion, with a gross profit rate increase of 135 basis points [6][7]. Expenses and Taxation - Selling, general and administrative expenses increased by 13.7% for the three months and 11.5% for the nine months, primarily due to increased marketing expenses [9]. - The effective tax rate decreased to 23.6% for the three months and 22.2% for the nine months ended October 31, 2025, compared to the previous year [10]. Share Repurchase and Expansion - The company repurchased 3.3 million shares for approximately $152 million during the nine months ended October 31, 2025, with 14.7 million shares remaining under the repurchase program [12]. - Urban Outfitters opened 41 new retail locations and closed 6 during the nine months ended October 31, 2025 [13].