Urban Outfitters Reports Record Q1 Sales and Income

Urban Outfitters ( (URBN) ) has released its Q1 earnings. Here is a breakdown of the information Urban Outfitters presented to its investors.

Urban Outfitters, Inc., a prominent lifestyle products and services company, operates a diverse portfolio of global consumer brands including Anthropologie, Free People, FP Movement, Urban Outfitters, and Nuuly. The company is recognized for its unique blend of retail, subscription, and wholesale offerings in the fashion industry.

Urban Outfitters has reported record-breaking first-quarter results for 2025, with net income reaching $108.3 million and earnings per diluted share at $1.16. The company’s total net sales increased by 10.7% to $1.33 billion, marking a significant achievement in its financial performance.

Key highlights from the earnings report include a 6.4% increase in total retail segment net sales, driven by a 4.8% rise in comparable retail segment net sales. The subscription segment saw a remarkable 59.5% increase in net sales, primarily due to a 52.9% rise in average active subscribers. Additionally, the wholesale segment experienced a 24.2% growth, largely attributed to a 25.6% increase in Free People wholesale sales.

Urban Outfitters’ gross profit rate improved by 278 basis points, benefiting from reduced markdowns and lower delivery expenses. The company also opened 13 new retail locations during the quarter, further expanding its market presence. Despite an increase in selling, general, and administrative expenses, the company managed to leverage these costs effectively as a percentage of net sales.

Looking ahead, Urban Outfitters remains confident in its strategic direction and the strength of its brands. The company anticipates continued success, supported by its robust financial performance and strategic initiatives aimed at driving growth across all segments.