URBN Reports Record Q1 Sales and Income
Rhea-AI Summary
Urban Outfitters (NASDAQ:URBN) reported record Q1 net income of $115.7 million and diluted EPS of $1.30 on record net sales of $1.48 billion, up 11.4% year over year.
Retail segment sales rose 8.0% with comparable sales up 5.6%, Subscription grew 34.5%, Wholesale 24.8%. Gross profit dollars increased 10.9% to $542.6 million, while SG&A rose 11.7%. The company repurchased 4.6 million shares for about $300 million, leaving 10.0 million shares available under its authorization, and ended the quarter with 801 total stores.
Positive
- Total Company net sales up 11.4% year over year to $1.48 billion
- Record net income of $115.7 million; diluted EPS of $1.30
- Retail comparable sales up 5.6%, led by FP Group and Urban Outfitters
- Subscription segment net sales up 34.5% on 33.3% subscriber growth
- Wholesale segment net sales up 24.8%, driven by FP Group wholesale
- Repurchase of 4.6 million shares for approximately $300 million in Q1
Negative
- Gross profit rate decreased 16 basis points year over year to 36.6%
- SG&A expenses up 11.7%, deleveraging 5 basis points versus prior year
- Net income margin declined from 8.1% to 7.8% of net sales
- Total inventory increased 9.5% year over year to $726.9 million
- Net cash provided by operating activities fell to $15.5 million from $33.0 million
News Market Reaction – URBN
In the May 21 session, URBN gained 2.92%, reflecting a moderate positive market reaction. Argus tracked a trough of -8.2% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | Record FY26 Q4 earnings | Positive | +0.9% | Record Q4 and FY26 sales and earnings with strong subscription growth. |
| Jan 12 | Record holiday sales | Positive | -12.3% | Holiday-period record sales with strong comps and subscription growth. |
| Nov 25 | Record Q3 results | Positive | +13.5% | Record Q3 sales, income, and strong Retail and Subscription momentum. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent record sales and earnings headlines usually saw positive reactions, though one strong holiday update drew a sharp negative move.
Over the past six months, URBN has repeatedly reported record results, including Q3 2025, holiday 2025, and FY26 Q4, with net sales reaching $6.17B for fiscal 2026. Subscription growth and Nuuly have been standout contributors, while Retail comps and Wholesale also supported expansion. Share repurchases have been ongoing. Market reactions were mixed: modest gains after FY26 Q4, a selloff after record holiday sales, and a strong rally after record Q3. Today’s record Q1 sales and income continue this growth narrative.
Key Terms
basis points financial
gross profit financial
selling, general and administrative expenses financial
effective tax rate financial
operating lease right-of-use assets financial
forward-looking statements regulatory
safe harbor regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
PHILADELPHIA, May 20, 2026 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced record net income of
Total Company net sales for the three months ended April 30, 2026, increased
“We are pleased to report record first quarter sales and earnings driven by positive retail segment ‘comps’ at all brands and impressive double-digit growth in both our Wholesale and Subscription segments,” said Richard A. Hayne, Chief Executive Officer. “Our customers remain engaged and are responding to compelling fashion trends, giving us confidence in URBN's continued success,” finished Mr. Hayne.
Net sales by brand and segment for the three-month periods were as follows:
| Three Months Ended | ||||||||
| April 30, | ||||||||
| 2026 | 2025 | |||||||
| Net sales by brand | ||||||||
| Anthropologie | $ | 589,073 | $ | 569,931 | ||||
| FP Group | 411,719 | 353,112 | ||||||
| Urban Outfitters | 304,727 | 273,505 | ||||||
| Nuuly | 167,264 | 124,354 | ||||||
| Menus & Venues | 8,562 | 8,599 | ||||||
| Total Company | $ | 1,481,345 | $ | 1,329,501 | ||||
| Net sales by segment | ||||||||
| Retail Segment | $ | 1,220,914 | $ | 1,130,510 | ||||
| Subscription Segment | 167,264 | 124,354 | ||||||
| Wholesale Segment | 93,167 | 74,637 | ||||||
| Total Company | $ | 1,481,345 | $ | 1,329,501 | ||||
For the three months ended April 30, 2026, the gross profit rate decreased by 16 basis points compared to the three months ended April 30, 2025, and gross profit dollars increased
As of April 30, 2026, total inventory increased by
For the three months ended April 30, 2026, selling, general and administrative expenses increased by
The Company’s effective tax rate for the three months ended April 30, 2026, was
Net income for the three months ended April 30, 2026, was a record
On June 4, 2019, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. During the three months ended April 30, 2026, the Company repurchased and subsequently retired 4.6 million shares for approximately
Store data for the three months ended April 30, 2026, was as follows:
| January 31, | April 30, | |||||||||||||||
| 2026 | Openings | Closings | 2026 | |||||||||||||
| Anthropologie NA | 234 | 2 | — | 236 | ||||||||||||
| Anthropologie EU | 20 | — | — | 20 | ||||||||||||
| Total Anthropologie | 254 | 2 | — | 256 | ||||||||||||
| Free People NA | 167 | 3 | 1 | 169 | ||||||||||||
| FP Movement NA | 88 | 6 | — | 94 | ||||||||||||
| Free People EU | 13 | — | — | 13 | ||||||||||||
| Total FP Group | 268 | 9 | 1 | 276 | ||||||||||||
| Urban Outfitters NA | 177 | — | 1 | 176 | ||||||||||||
| Urban Outfitters EU | 76 | — | — | 76 | ||||||||||||
| Total Urban Outfitters | 253 | — | 1 | 252 | ||||||||||||
| Menus & Venues | 9 | — | 1 | 8 | ||||||||||||
| Total Company-Owned Stores | 784 | 11 | 3 | 792 | ||||||||||||
| Franchisee-Owned Stores(1) | 9 | — | — | 9 | ||||||||||||
| Total URBN | 793 | 11 | 3 | 801 | ||||||||||||
(1) Includes 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores. | ||||||||||||||||
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of Anthropologie stores in the United States, Canada and Europe, catalogs and websites; FP Group stores (including Free People and FP Movement stores) in the United States, Canada and Europe, catalogs and websites; Urban Outfitters stores in the United States, Canada and Europe and websites; Menus & Venues restaurants; and Urban Outfitters franchisee-owned stores and Anthropologie franchisee-owned stores in the Middle East. Free People, FP Movement and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company’s Retail segment. Nuuly is primarily a women's apparel subscription rental service which offers a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces.
A conference call will be held today to discuss first quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/ocrpxphv/.
As used in this document, unless otherwise defined, "Anthropologie" refers to the Company’s Anthropologie, Terrain and Maeve brands and "FP Group" refers to the Company’s Free People and FP Movement brands.
This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, currency fluctuations, economic conditions and legal or regulatory changes, the effects of war and geopolitical instability, including impacts of the conflicts in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises, labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, our effective utilization of technological advancements, including in artificial intelligence, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs such as retaliatory tariffs), border adjustment taxes or increases in duties or quotas, the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.
| (Tables follow) |
| URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Income (amounts in thousands, except share and per share data) (unaudited) | ||||||||
| Three Months Ended | ||||||||
| April 30, | ||||||||
| 2026 | 2025 | |||||||
| Net sales | $ | 1,481,345 | $ | 1,329,501 | ||||
| Cost of sales | 938,779 | 840,437 | ||||||
| Gross profit | 542,566 | 489,064 | ||||||
| Selling, general and administrative expenses | 402,885 | 360,837 | ||||||
| Income from operations | 139,681 | 128,227 | ||||||
| Other income, net | 6,185 | 9,646 | ||||||
| Income before income taxes | 145,866 | 137,873 | ||||||
| Income tax expense | 30,161 | 29,526 | ||||||
| Net income | $ | 115,705 | $ | 108,347 | ||||
| Net income per common share: | ||||||||
| Basic | $ | 1.32 | $ | 1.18 | ||||
| Diluted | $ | 1.30 | $ | 1.16 | ||||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 87,503,853 | 91,752,408 | ||||||
| Diluted | 88,801,846 | 93,475,835 | ||||||
| AS A PERCENTAGE OF NET SALES | ||||||||
| Net sales | 100.0 | % | 100.0 | % | ||||
| Cost of sales | 63.4 | % | 63.2 | % | ||||
| Gross profit | 36.6 | % | 36.8 | % | ||||
| Selling, general and administrative expenses | 27.2 | % | 27.2 | % | ||||
| Income from operations | 9.4 | % | 9.6 | % | ||||
| Other income, net | 0.4 | % | 0.8 | % | ||||
| Income before income taxes | 9.8 | % | 10.4 | % | ||||
| Income tax expense | 2.0 | % | 2.3 | % | ||||
| Net income | 7.8 | % | 8.1 | % | ||||
| URBAN OUTFITTERS, INC. Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited) | ||||||||||||
| April 30, | January 31, | April 30, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 301,364 | $ | 369,206 | $ | 189,433 | ||||||
| Marketable securities | 111,978 | 326,724 | 285,585 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts of | 115,903 | 95,668 | 93,248 | |||||||||
| Inventory | 726,858 | 700,945 | 663,803 | |||||||||
| Prepaid expenses and other current assets | 280,545 | 193,561 | 206,990 | |||||||||
| Total current assets | 1,536,648 | 1,686,104 | 1,439,059 | |||||||||
| Property and equipment, net | 1,620,770 | 1,466,236 | 1,346,557 | |||||||||
| Operating lease right-of-use assets | 1,037,062 | 1,051,109 | 973,831 | |||||||||
| Marketable securities | 237,471 | 461,858 | 365,937 | |||||||||
| Other assets | 332,817 | 342,306 | 331,692 | |||||||||
| Total Assets | $ | 4,764,768 | $ | 5,007,613 | $ | 4,457,076 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 332,949 | $ | 327,903 | $ | 302,104 | ||||||
| Current portion of operating lease liabilities | 225,005 | 225,478 | 231,361 | |||||||||
| Accrued expenses, accrued compensation and other current liabilities | 483,050 | 564,713 | 495,593 | |||||||||
| Total current liabilities | 1,041,004 | 1,118,094 | 1,029,058 | |||||||||
| Non-current portion of operating lease liabilities | 979,600 | 1,000,088 | 909,168 | |||||||||
| Other non-current liabilities | 133,554 | 74,144 | 87,043 | |||||||||
| Total Liabilities | 2,154,158 | 2,192,326 | 2,025,269 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued | — | — | — | |||||||||
| Common shares; $.0001 par value, 200,000,000 shares authorized, 85,601,280, 89,698,222 and 89,614,734 shares issued and outstanding, respectively | 9 | 9 | 9 | |||||||||
| Additional paid-in-capital | — | 19,912 | — | |||||||||
| Retained earnings | 2,637,046 | 2,817,448 | 2,460,876 | |||||||||
| Accumulated other comprehensive loss | (26,445 | ) | (22,082 | ) | (29,078 | ) | ||||||
| Total Shareholders’ Equity | 2,610,610 | 2,815,287 | 2,431,807 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 4,764,768 | $ | 5,007,613 | $ | 4,457,076 | ||||||
| URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited) | ||||||||
| Three Months Ended | ||||||||
| April 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 115,705 | $ | 108,347 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 36,069 | 29,554 | ||||||
| Non-cash lease expense | 53,310 | 52,805 | ||||||
| Provision for deferred income taxes | 89,732 | 13,701 | ||||||
| Share-based compensation expense | 8,137 | 7,763 | ||||||
| Amortization of tax credit investment | 3,726 | 4,293 | ||||||
| Loss on disposition of property and equipment, net | 380 | 94 | ||||||
| Changes in assets and liabilities: | ||||||||
| Receivables | (20,364 | ) | (15,036 | ) | ||||
| Inventory | (26,735 | ) | (37,386 | ) | ||||
| Prepaid expenses and other assets | (105,296 | ) | (17,058 | ) | ||||
| Payables, accrued expenses and other liabilities | (78,032 | ) | (54,114 | ) | ||||
| Operating lease liabilities | (61,148 | ) | (59,931 | ) | ||||
| Net cash provided by operating activities | 15,484 | 33,032 | ||||||
| Cash flows from investing activities: | ||||||||
| Cash paid for property and equipment | (193,244 | ) | (46,158 | ) | ||||
| Cash paid for marketable securities | (78,294 | ) | (117,878 | ) | ||||
| Sales and maturities of marketable securities | 514,251 | 203,416 | ||||||
| Net cash provided by investing activities | 242,713 | 39,380 | ||||||
| Cash flows from financing activities: | ||||||||
| Share repurchases related to share repurchase program | (299,996 | ) | (151,935 | ) | ||||
| Share repurchases related to taxes for share-based awards | (21,513 | ) | (20,241 | ) | ||||
| Tax credit investment liability payments | (3,859 | ) | (4,172 | ) | ||||
| Net cash used in financing activities | (325,368 | ) | (176,348 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (671 | ) | 2,888 | |||||
| Decrease in cash and cash equivalents | (67,842 | ) | (101,048 | ) | ||||
| Cash and cash equivalents at beginning of period | 369,206 | 290,481 | ||||||
| Cash and cash equivalents at end of period | $ | 301,364 | $ | 189,433 | ||||
| Contact: | Oona McCullough |
| Executive Director of Investor Relations | |
| (215) 454-4806 |
