Urban Outfitters ( (URBN) ) has released its Q2 earnings. Here is a breakdown of the information Urban Outfitters presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Urban Outfitters, Inc. is a lifestyle products and services company operating a diverse portfolio of global consumer brands, including Anthropologie, Free People, and Urban Outfitters, in the retail sector.
Urban Outfitters reported record-breaking financial results for the second quarter of 2025, with net income reaching $143.9 million and earnings per diluted share at $1.58. The company’s total net sales for the quarter increased by 11.3% to $1.50 billion, driven by growth across all segments and brands.
Key highlights include a 7.8% increase in the Retail segment’s net sales, with notable growth in both retail store and digital channel sales. The Subscription segment saw a remarkable 53.2% increase in net sales, primarily due to a significant rise in average active subscribers. The Wholesale segment also experienced an 18.1% increase in sales, largely attributed to the Free People brand’s success with specialty customers.
The company’s gross profit rate improved by 113 basis points, and gross profit dollars increased by 14.8%, reflecting better markdown management and occupancy cost leverage. Despite a 12.5% rise in selling, general, and administrative expenses, the effective tax rate decreased to 21.5%, contributing to the strong net income performance.
Looking ahead, Urban Outfitters’ management expresses confidence in maintaining momentum, supported by the strength of its brands and strategic initiatives. The company continues to focus on expanding its retail footprint and enhancing its digital and subscription offerings to drive future growth.