Urban Outfitters, Inc. has reported record-breaking financial results for the third quarter of 2025. The company achieved a net income of $116.4 million and earnings per diluted share of $1.28 for the three months ended October 31, 2025. For the nine months ended October 31, 2025, the net income reached a record $368.7 million with earnings per diluted share at $4.01.
Total company net sales for the three months ended October 31, 2025, increased by 12.3% to a record $1.53 billion. The retail segment net sales increased by 9.6%, with comparable retail segment net sales increasing by 8.0%. Additionally, the subscription segment net sales increased by 48.7%, primarily driven by a 42.2% increase in average active subscribers compared to the prior year.
For the nine months ended October 31, 2025, total company net sales increased by 11.5% to a record $4.36 billion. The retail segment net sales increased by 8.0%, and comparable retail segment net sales increased by 6.1%. The subscription segment net sales increased by 53.4%, primarily driven by a 47.3% increase in average active subscribers compared to the prior year.
The gross profit rate for the three and nine months ended October 31, 2025, increased by 31 and 135 basis points, respectively, compared to the same periods in the prior year. Gross profit dollars also saw a significant increase, attributed to higher net sales and an improved gross profit rate.
Selling, general, and administrative expenses increased by $50.4 million (13.7%) for the three months and $121.1 million (11.5%) for the nine months ended October 31, 2025, compared to the same periods in the prior year.
The effective tax rate for the three and nine months ended October 31, 2025, decreased to 23.6% and 22.2%, respectively, compared to the prior year.
As of October 31, 2025, the company had repurchased and subsequently retired 3.3 million shares for approximately $152 million, with 14.7 million common shares remaining under the share repurchase program.
In terms of store operations, the company opened a total of 41 new retail locations and closed 6 retail locations during the nine months ended October 31, 2025.
This impressive performance is attributed to the company's diversified business model, which has enabled it to capture market share and drive consistent long-term growth across its various segments and brands. As a result of these announcements, the company's shares have moved 9.79% on the market, and are now trading at a price of $68.31. Check out the company's full 8-K submission here.
