The US retail group Urban Outfitters Inc. announced new record results for the third quarter and the first nine months of the 2025/26 financial year on Tuesday evening. Strong consumer demand in the retail, subscription and wholesale segments drove the double-digit increases in sales and profits, according to the company.
In the three months to October 31, consolidated sales were $1.53 billion (1.45 billion euros), an increase of 12.3 percent compared to the same quarter last year.
In the company’s own retail sector, sales rose by 9.6 percent; on a comparable basis, they rose by 8.0 percent. Both digital and brick-and-mortar sales posted high single-digit growth. At the brand level, comparable sales at Urban Outfitters increased 12.5 percent. They rose 7.6 percent at Anthropologie and 4.1 percent at Free People.
The rapidly expanding subscription segment grew by 48.7 percent, driven by a 42.2 percent increase in the average number of active subscribers. Sales in the wholesale business increased by 7.6 percent thanks to strong demand for Free People brand products.
Net profit increases by 13 percent
Net profit reached $116.4 million (100.6 million euros) in the third quarter. This exceeded the corresponding previous year’s level by 13.1 percent.
In the first nine months of the current year, sales were $4.36 billion, an increase of 11.5 percent compared to the same period last year. Net profit increased 30.7 percent to $368.7 million.
CEO Richard Hayne praised the current results. “We are pleased to report record sales, earnings and earnings per share for the quarter,” he said in a statement. “The trends observed in the prior quarter continued.”
He highlighted broad-based comparable sales growth and robust results in the retail, subscription and wholesale segments. “These results underscore the strength of our diversified business model,” said Hayne. It will enable the company to continue to gain market share and drive consistent long-term growth.
In the first nine months, the company bought back 3.3 million of its own shares for around $152 million. The group also continued its expansion and opened 41 new stores. This included 25 Free People branches, 13 of which were under the FP Movement concept. Nine Anthropologie stores and seven Urban Outfitters stores were also added. During the same period, the company closed six locations.
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