Urban Outfitters, Inc. has reported record-breaking financial results for the second quarter of the fiscal year 2025, with a net income of $143.9 million and earnings per diluted share of $1.58. This represents a substantial increase from the corresponding period in the previous year, with net income for the six months ended July 31, 2025, reaching a record $252.2 million and earnings per diluted share of $2.73.
Total company net sales for the three months ended July 31, 2025, increased by 11.3% to a record $1.50 billion, with total retail segment net sales increasing by 7.8%. Notably, comparable retail segment net sales increased by 5.6%, driven by positive growth in both retail store sales and the digital channel.
Furthermore, the subscription segment net sales saw a significant increase of 53.2% primarily driven by a 48.1% increase in average active subscribers compared to the prior year quarter. The wholesale segment net sales also experienced a notable 18.1% increase, driven by a 19.5% increase in sales to specialty customers.
The gross profit rate for the three months ended July 31, 2025, increased by 113 basis points compared to the same period in 2024, with gross profit dollars increasing by 14.8% to $566.2 million from $493.3 million. For the six months ended July 31, 2025, the gross profit rate increased by 191 basis points compared to the prior year period, with gross profit dollars increasing by 17.0% to $1.06 billion from $901.7 million.
As of July 31, 2025, total inventory increased by $91.5 million, or 15.1%, compared to the same period in 2024, with total retail segment inventory increasing by 15.0% and comparable retail segment inventory increasing by 11.3%. The selling, general, and administrative expenses increased by $43.6 million, or 12.5%, for the three months ended July 31, 2025, compared to the same period in 2024. For the six months ended July 31, 2025, selling, general, and administrative expenses increased by $70.7 million, or 10.4%, compared to the prior year period.
The effective tax rate for the three and six months ended July 31, 2025, decreased to 21.5% and 21.5% respectively, compared to 23.0% and 23.2% in the corresponding periods in 2024. Additionally, during the six months ended July 31, 2025, the company repurchased and subsequently retired 3.3 million shares for approximately $152 million.
Today the company's shares have moved -9.1% to a price of $70.91. For the full picture, make sure to review URBAN OUTFITTERS INC's 8-K report.
