The US retail group Urban Outfitters Inc. achieved record sales of 1.80 billion US dollars (1.52 billion euros) in the fourth quarter of the 2025/26 financial year. This corresponds to an increase of 10.1 percent compared to the same period last year. For the full fiscal year ended January 31, group sales amounted to $6.17 billion (5.23 billion euros), according to a statement published on Thursday. This meant growth of 11.1 percent compared to the previous year.
Fourth-quarter net income, adjusted for special items, was $130.50 million, or $1.43 per diluted share. Adjusted net income rose to $499.2 million. CEO Richard Hayne was satisfied with the record results. These were driven by increases in the group’s retail, subscription and wholesale segments.
The Urban Outfitters retail chain is recovering
The recovery of the Urban Outfitters retail chain was notable, with sales rising by 9.6 percent on a comparable basis in the final quarter. The other segments also achieved growth. On a like-for-like basis, retail sales increased 5.2 percent at Free People and 3.7 percent at Anthropologie.
The group’s subscription segment, which mainly consists of clothing rental company Nuuly, continued its rapid expansion in the fourth quarter with a 42.6 percent increase in net sales. This increase was due not least to an increase in the number of subscribers by 40.3 percent. Management emphasized that Nuuly will play the role of the company’s primary growth driver in the future.
The retailer takes measures to combat negative tariff effects
During an earnings conference call, analysts expressed concerns about the potential impact of tariffs on future earnings. Management highlighted that the group is actively negotiating with suppliers. The company is also adapting its procurement strategies to mitigate these effects.
There was also significant interest in Nuuly’s expansion plans. Management highlighted the segment’s exceptional momentum and role in capturing a larger share of the millennial and Generation Z rental market.
The company also reiterated its commitment to shareholder returns. During the most recent financial year, the group repurchased 3.3 million shares for around $154 million.
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