Core Insights - Urban Outfitters, Inc. (URBN) reported strong third-quarter fiscal 2026 results, with both earnings and sales exceeding expectations and improving from the previous year [1][4][11] Financial Performance - Earnings per share reached $1.28, surpassing the Zacks Consensus Estimate of $1.19, marking a 16.3% increase year over year [4] - Total net sales increased by 12.3% year over year to $1,529.4 million, exceeding the consensus estimate of $1,493 million [4] - Retail segment sales rose 9.6%, with comparable net sales increasing by 8%, driven by growth in both digital and brick-and-mortar channels [5] - Nuuly, the women's apparel subscription service, saw a significant 48.7% increase in net sales, reflecting a 42.2% rise in average active subscribers [7] Margin and Cost Insights - Gross profit increased by 13.3% year over year to $563.3 million, with gross margin expanding by 31 basis points to 36.8% [8] - Selling, general and administrative (SG&A) expenses rose 13.7% year over year to $419 million, primarily due to higher marketing and payroll expenses [10] - Operating income was $144.3 million, up 12.1% from the prior year, with an operating margin remaining flat at 9.4% [13] Store and Inventory Update - URBN opened 27 retail locations in the fiscal third quarter, while closing six stores [14] - As of October 31, 2025, URBN operated 258 Urban Outfitters stores, 248 Anthropologie stores, and 253 Free People stores [15] - Total inventory increased by 5.9% year over year, with retail segment inventory up 6.3% [16] Fiscal Outlook - The company anticipates strong performance in the fiscal fourth quarter, expecting total sales growth in the high single digits [18] - Gross margins are projected to expand by 25-50 basis points, despite tariff-related declines [20] - For fiscal 2026, URBN expects full-year gross margins to improve by approximately 100 basis points [22]

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 ...