Urban Outfitters (URBN) investor relations material

Executive summary

• Achieved record Q3 net sales of $1.53 billion, up 12% year-over-year, and record net income of $116 million ($1.28 per diluted share), with strong growth across Retail, Subscription, and Wholesale segments.

• Retail segment comparable sales rose 8%, with both digital and store channels showing high single-digit growth.

• Robust customer engagement and broad-based brand performance, with Urban Outfitters and Nuuly showing especially strong double-digit growth.

Financial highlights

• Q3 gross profit increased 13% to $563 million, with gross margin up 31 basis points to 36.8%.

• Operating income rose 12% to $144 million, maintaining a 9.4% margin; net income up 13% to $116 million.

• SG&A expenses increased 14% to $419 million, mainly due to higher marketing and store labor costs.

• Effective tax rate for Q3 was 23.6%.

Outlook and guidance

• Q4 company sales expected to grow high single digits; retail segment comps projected mid-single digit positive.

• Urban Outfitters brand expected to deliver high single-digit retail segment comps; Anthropologie mid-single digit; Free People low to mid-single digit.

• Nuuly anticipated to achieve mid-double digit revenue growth; wholesale segment to see mid-single digit growth.

• Full-year gross profit margin expected to improve by ~100 basis points.

• FY 2026 capital expenditures planned at $300 million, with 69 new store openings and 17 closures.