PHILADELPHIA, PA — Urban Outfitters, Inc. (NASDAQ: URBN) has announced record-breaking financial results for the first quarter of fiscal year 2025, reflecting strong performance across all brands and segments. The company reported net income of $108.3 million, with earnings per diluted share of $1.16, driven by a 10.7% increase in total net sales to $1.33 billion for the quarter ended April 30, 2025.
Retail segment net sales grew 6.4%, fueled by a 4.8% increase in comparable sales. Both retail store and digital channels contributed to this growth, highlighted by a 6.9% rise in comparable sales at Anthropologie, 3.1% at Free People, and 2.1% at Urban Outfitters. Subscription segment net sales surged by 59.5%, underpinned by a 52.9% increase in active subscribers. Meanwhile, Wholesale segment net sales climbed 24.2%, bolstered by a 25.6% boost in Free People wholesale sales.
“We are excited to announce record first-quarter revenues and profits,” said Richard A. Hayne, Chief Executive Officer. “Our success was driven by positive sales growth and improved profitability across all brands and segments. We believe these results demonstrate the strength of our brands and the effectiveness of our strategy, giving us confidence in URBN’s continued success.”
The company’s gross profit for the quarter increased by nearly 20% year-over-year to $489.1 million, with the gross profit margin rising by 278 basis points. This improvement was attributed to lower discounts in the Retail segment, reductions in delivery costs, and operational efficiencies in store occupancy expenses.
Operating expenses climbed 8.1% to fund increased marketing, payroll, and customer growth initiatives. However, efficiency gains resulted in a 65-basis-point leverage of expenses as a percentage of net sales.
Urban Outfitters also continued its shareholder-focused strategies, repurchasing 3.3 million shares during the quarter for approximately $152 million under its ongoing buyback program. Additionally, the company opened 13 new retail locations, including nine Free People stores (five of which were FP Movement), two Anthropologie stores, and two Urban Outfitters stores, while closing two Free People locations.
With a 14.6% rise in inventory and solid sales momentum, the company is well-positioned for future growth. The effective tax rate declined to 21.4%, reflecting a favorable earnings mix.
Urban Outfitters’ record-breaking quarter reflects its ability to adapt to evolving consumer demands, maintain operational discipline, and execute a well-rounded growth strategy across diverse channels and brand offerings.
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