URBN Reports Record FY26 Q4 Sales and Operating Results

Core Insights - Urban Outfitters, Inc. reported record net income of $96.3 million and earnings per diluted share of $1.05 for the three months ended January 31, 2026, with adjusted net income of $130.5 million and adjusted earnings per diluted share of $1.43 [1][10] - For the year ended January 31, 2026, net income was $464.9 million and earnings per diluted share were $5.06, with adjusted net income of $499.2 million and adjusted earnings per diluted share of $5.44 [1][10] Financial Performance - Total Company net sales for the three months ended January 31, 2026, increased by 10.1% to $1.80 billion, with Retail segment net sales up by 7.7% and comparable Retail segment net sales increasing by 5.5% [3] - For the year ended January 31, 2026, total Company net sales rose by 11.1% to $6.17 billion, with Retail segment net sales increasing by 7.9% and comparable Retail segment net sales up by 6.0% [4] Segment Performance - Subscription segment net sales surged by 42.6% for the three months ended January 31, 2026, driven by a 40.3% increase in average active subscribers [3] - For the year ended January 31, 2026, subscription segment net sales increased by 50.2%, primarily due to a 45.3% rise in average active subscribers [4] Gross Profit and Expenses - Gross profit for the three months ended January 31, 2026, increased by 13.6% to $599.2 million, with a gross profit rate improvement of 101 basis points compared to the same period in 2025 [6] - Selling, general and administrative expenses rose by 9.5% for the three months ended January 31, 2026, but leveraged 14 basis points as a percentage of net sales [8] Inventory and Store Data - Total inventory as of January 31, 2026, increased by $79.8 million, or 12.8%, compared to the previous year, with Retail segment inventory up by 13.4% [7] - The total number of company-owned stores increased to 784 as of January 31, 2026, from 733 a year earlier, with notable openings in the Free People and FP Movement brands [13] Share Repurchase Program - During the year ended January 31, 2026, the company repurchased and retired 3.3 million shares for approximately $154 million, compared to 1.2 million shares for about $52 million in the previous year [11]