PHILADELPHIA, PA — Urban Outfitters, Inc. (NASDAQ: URBN) delivered another standout quarter, posting record sales and income for its fiscal third quarter as strong demand across its retail, subscription, and wholesale businesses fueled double-digit revenue growth.
The lifestyle retailer reported net income of $116.4 million, or $1.28 per diluted share, for the three months ended Oct. 31, 2025, up from $102.9 million a year earlier, according to the company’s earnings release. Total net sales rose 12.3% to an all-time high of $1.53 billion, driven by broad-based gains across brands including Anthropologie, Free People, Urban Outfitters, and its fast-growing Nuuly subscription platform.
CEO Richard A. Hayne said the company benefited from consistent momentum across its major segments. “We are pleased to report record revenues, profits, and earnings per share for the quarter,” Hayne said. “These results … highlight the strength of our diversified business model, which enables us to continue capturing market share and drive consistent long-term growth.”
Retail and Subscription Strength
Retail segment net sales rose 9.6%, with comparable sales increasing 8%. Urban Outfitters led the way with a 12.5% jump in comparable sales, followed by Anthropologie at 7.6% and Free People at 4.1%. Both digital and in-store channels posted high single-digit gains.
Nuuly, the company’s apparel rental subscription business, remained one of URBN’s fastest-growing operations. Subscription segment revenue surged 48.7%, supported by a 42.2% increase in active subscribers.
The wholesale division expanded 7.6% on the strength of Free People products sold through department and specialty stores.
Profitability and Margins Improve
Gross profit rose 13.3% to $563.3 million, with margins improving 31 basis points. The company cited lower markdowns and improved store occupancy leverage, offset in part by higher initial merchandise costs. Operating income reached $144.3 million, up from $128.7 million in the prior year period.
Selling, general and administrative expenses increased 13.7% as URBN continued to invest in marketing and store payroll to support growth across its retail and subscription segments.
Store Expansion and Share Repurchases
URBN opened 41 new retail locations during the first nine months of fiscal 2025, including 25 Free People stores — 13 of which were FP Movement — along with nine Anthropologie and seven Urban Outfitters stores. The company closed six locations during the same period.
The company also continued to return capital to shareholders, repurchasing 3.3 million shares for approximately $152 million year-to-date. About 14.7 million shares remain available under the existing repurchase authorization.
Looking Ahead
URBN finished the quarter with $306.6 million in cash and cash equivalents and nearly $657 million in marketable securities. Inventory increased 5.9% year-over-year, primarily to support higher sales volumes.
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