Urban Outfitters, Inc. has reported impressive financial results for the third quarter ending October 31, 2025. The company announced record net income of $116.4 million and earnings per diluted share of $1.28 for the quarter, compared to the same period in the previous year. For the nine months ended October 31, 2025, net income was a record $368.7 million and earnings per diluted share were $4.01.
Total company net sales for the three months ended October 31, 2025, increased 12.3% to a record $1.53 billion, with total retail segment net sales increasing by 9.6%. Comparable retail segment net sales increased by 8.0%, driven by high single-digit positive growth in both digital channel sales and retail store sales.
For the nine months ended October 31, 2025, total company net sales increased 11.5% to a record $4.36 billion, with total retail segment net sales increasing by 8.0%. Comparable retail segment net sales increased by 6.1%, driven by mid single-digit positive growth in both retail store sales and digital channel sales.
The gross profit rate increased by 31 basis points for the three months ended October 31, 2025, compared to the same period in the previous year. Gross profit dollars also saw a significant increase of 13.3% to $563.3 million. For the nine months ended October 31, 2025, the gross profit rate increased by 135 basis points, reaching $1.62 billion in gross profit dollars.
The company's effective tax rate for the three months ended October 31, 2025, was 23.6%, compared to 24.2% in the same period in the previous year. The effective tax rate for the nine months ended October 31, 2025, was 22.2%, compared to 23.6% in the nine months ended October 31, 2024.
During the nine months ended October 31, 2025, Urban Outfitters, Inc. repurchased and subsequently retired 3.3 million shares for approximately $152 million. As of October 31, 2025, 14.7 million common shares were remaining under the share repurchase program.
In terms of inventory, as of October 31, 2025, total inventory increased by $46.5 million, or 5.9%, compared to the same period in the previous year. Total retail segment inventory increased by 6.3%, and comparable retail segment inventory increased by 7.4%.
The company opened a total of 41 new retail locations during the nine months ended October 31, 2025, and closed 6 retail locations. This includes 25 Free People stores, 9 Anthropologie stores, and 7 Urban Outfitters stores.
As a result of these announcements, the company's shares have moved 13.73% on the market, and are now trading at a price of $77.6925. If you want to know more, read the company's complete 8-K report here.
