Urban Outfitters (URBN) Q4 2026 earnings summary

Executive summary

• Achieved record quarterly and annual sales and operating profits, with total revenue up to $1.80 billion for the quarter and strong performance across Retail, Subscription, and Wholesale segments.

• Net income for the quarter was $116 million ($1.28 EPS), with adjusted net income reaching $130.5 million ($1.43 EPS).

• All brands delivered positive comparable sales across all geographies, with Urban Outfitters and Nuuly showing especially strong double-digit growth.

• Robust customer engagement and digital channel growth drove increases in both store traffic and online sessions, supporting sales momentum.

• Nuuly apparel rental business saw double-digit subscriber and revenue growth, with average active subscribers up over 40%.

Financial highlights

• Net sales for the quarter rose 10.1% year-over-year to $1.80 billion, with Retail segment sales up 8% and Subscription segment sales up 43%.

• Gross profit increased 13.6% to $599 million, with gross margin improving by 101 basis points to 33.3%.

• Operating income was $158.7 million (8.8% margin), and adjusted EPS was $1.43, up from $1.04 year-over-year.

• SG&A expenses increased 9% to $441 million, mainly due to higher marketing spend and new store labor costs, but leveraged 14 basis points as a percentage of sales.

• Inventory increased 13% to $701 million, reflecting higher sales and timing of receipts.

Outlook and guidance

• Q4 sales expected to grow in the high single digits, with mid-single digit Retail segment comps and high single digit comps at Urban Outfitters.

• Full-year gross profit margin projected to increase by ~100 basis points, with Q4 margins up 25–50 basis points despite higher tariffs.

• Management highlighted continued momentum in the Nuuly subscription business and strong multi-segment growth.