Urban Outfitters achieves record sales led by Nuuly and brand recovery

The US-based lifestyle group Urban Outfitters reported record total company net sales of 1.80 billion dollars for the fourth quarter ended January 31, 2026, representing a 10.1 percent increase over the previous year. For the full fiscal year, the group achieved net sales of 6.17 billion dollars, a 11.1 percent increase compared to fiscal 2025.

Adjusted net income for the fourth quarter reached 130.50 million dollars, or 1.43 dollars per diluted share, while annual adjusted net income grew to 499.20 million dollars. Richard A. Hayne, the chief executive officer, expressed satisfaction with the record performance, which was driven by growth across the group's retail, subscription, and wholesale segments.

Brand performance and segment highlights

The recovery of the Urban Outfitters brand was a notable highlight, with the segment recording a 9.6 percent increase in comparable retail net sales for the quarter. Other portfolio brands also demonstrated steady growth, with comparable retail sales rising 5.2 percent at Free People and 3.7 percent at Anthropologie.

The group's subscription segment, primarily driven by the apparel rental business Nuuly, continued its rapid expansion with a 42.6 percent increase in net sales for the quarter. This surge was fueled by a 40.3 percent increase in average active subscribers, and management emphasized Nuuly's role as a primary growth driver for the enterprise moving forward.

Urban Outfitters achieved significant margin improvement, with the annual gross profit rate increasing by 126 basis points.

Investor queries and strategic mitigation

During the earnings call, analysts raised concerns regarding the potential impact of tariffs on future earnings. Management highlighted that the group is actively engaged in negotiations with vendors and adjusting its sourcing strategies to mitigate these effects.

There was also significant interest in the expansion plans for Nuuly, with executives reiterating its exceptional momentum and role in capturing a larger share of the millennial and Gen Z rental market.

Furthermore, the company maintained its commitment to shareholder returns, having repurchased 3.3 million shares for approximately 154 million dollars during the fiscal year.