Urban Outfitters Q4 earnings surge, driven by Nuuly's growth

Urban Outfitters reported strong fourth-quarter earnings, with net income rising to 98.1 million dollars from the same period of 2024. Earnings per diluted share increased to 1.04 dollars, reflecting a robust performance across multiple segments.

Total net sales for the quarter grew by 10.1 percent to 1.64 billion dollars, with retail segment sales increasing by 6.3 percent. The growth was fueled by a 5.1 percent rise in comparable sales, driven by strong digital and in-store performance.

However, the standout success came from Nuuly, Urban Outfitters’ subscription-based rental service, which led the subscription segment to an impressive 78.4 percent sales increase.

For the full year, Nuuly continued its rapid expansion, contributing significantly to a 60.4 percent increase in subscription segment sales. This momentum played a key role in driving Urban Outfitters' overall net income to 383.9 million dollars, with earnings per diluted share improving to 4.06 dollars.

Total net sales rose by 7.7 percent to 5.55 billion dollars, with the retail segment growing by 4.7 percent and comparable sales up by 3.4 percent.

CEO Richard A. Hayne highlighted record fourth-quarter revenues and full-year profits, attributing the success to the strength of all three segments—retail, subscription, and wholesale. Nuuly’s rapid growth underscores its increasing importance to the company's overall strategy, reinforcing confidence in sustained future expansion.

Brand-wise, Free People and Anthropologie saw strong comparable sales growth of 8.9 percent and 7.7 percent, respectively, while Urban Outfitters experienced an 8.7 percent decline. The wholesale segment also saw a solid 15.5 percent increase, led by a 17.9 percent rise in Free People wholesale sales.