PHILADELPHIA, PA — Urban Outfitters Inc. (Nasdaq: URBN) reported net income of $96.3 million for the quarter ended January 31, 2026, as total company sales rose to $1.80 billion, the company announced.
Earnings per diluted share for the quarter were $1.05.
Adjusted net income for the quarter was $130.5 million, or $1.43 per diluted share, compared with adjusted net income of $98.1 million, or $1.04 per share, in the same quarter a year earlier.
Total company net sales increased 10.1% to $1.80 billion for the quarter.
Retail segment net sales increased 7.7%, with comparable retail sales rising 5.5%, driven by growth in both digital and store channels.
Comparable retail sales rose 9.6% at Urban Outfitters, 5.2% at Free People and 3.7% at Anthropologie.
Subscription segment net sales increased 42.6%, driven primarily by a 40.3% increase in average active subscribers during the quarter.
Wholesale segment net sales increased 9.1%, led by a 10.2% increase in Free People wholesale sales.
Gross profit for the quarter rose 13.6% to $599.2 million from $527.7 million a year earlier.
The gross profit rate increased by 101 basis points compared with the same period in the prior year.
Selling, general and administrative expenses increased by $38.1 million, or 9.5%, primarily due to higher marketing expenses and increased store payroll costs to support retail sales growth.
The company also recorded a $46.0 million charitable contribution to a donor-advised fund during the quarter and fiscal year.
For the full year ended January 31, 2026, Urban Outfitters reported net income of $464.9 million and earnings per diluted share of $5.06.
Adjusted net income for the year was $499.2 million, or $5.44 per diluted share, compared with adjusted net income of $380.3 million, or $4.03 per share in the previous year.
Total company net sales for the fiscal year increased 11.1% to $6.17 billion.
Retail segment net sales rose 7.9%, with comparable retail sales increasing 6.0%.
Subscription segment net sales increased 50.2%, driven by a 45.3% increase in average active subscribers during the year.
Wholesale segment net sales increased 14.0%, led by a 15.2% increase in Free People wholesale sales.
“We are pleased to report record sales and operating profits for the quarter, driven by strong results across all three segments – Retail, Subscription, and Wholesale,” said Chief Executive Officer Richard A. Hayne.
As of January 31, 2026, company inventory increased by $79.8 million, or 12.8%, compared with the same date a year earlier.
During the fiscal year, the company repurchased and retired 3.3 million shares of common stock for approximately $154 million.
Urban Outfitters said 14.6 million shares remain authorized under its share repurchase program.
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