Urban Outfitters reported record second-quarter sales and profit for the three months ended July 31, 2026, with net income rising to $240.7 million from $181.2 million a year earlier, and diluted earnings per share increasing to $2.78 from $2.01.
Total company net sales climbed 10.4% to $1.66 billion from $1.50 billion. For the first six months of the year, net sales increased 10.9% to $3.14 billion from $2.83 billion, while net income rose to $356.4 million from $264.7 million and diluted EPS increased to $4.06 from $2.95.
Retail segment net sales in the quarter increased 8.0% to $1.39 billion from $1.29 billion, with comparable retail sales up 6.2%. By brand, comparable retail sales rose 10.0% at FP Group, 8.4% at Urban Outfitters and 3.0% at Anthropologie.
Subscription revenue jumped 28.6% in the quarter to $178.6 million from $138.9 million, driven by a 30.4% increase in average active subscribers. Wholesale sales rose 18.6% to $90.8 million from $76.6 million, helped by a 19.2% increase in FP Group wholesale sales.
For the six-month period, retail segment net sales increased 8.0% to $2.61 billion from $2.42 billion, with comparable retail sales up 6.0%. Six-month comparable sales increased 9.9% at FP Group, 8.8% at Urban Outfitters and 2.5% at Anthropologie.
Subscription sales advanced 31.4% in the half-year to $345.9 million from $263.3 million, as average active subscribers increased 31.8%. Wholesale sales rose 21.7% to $184.0 million from $151.2 million.
Gross profit for the quarter increased 27.4% to $721.6 million from $566.2 million, and the gross margin rate improved by 580 basis points. For the six months, gross profit rose 19.8% to $1.26 billion from $1.06 billion, with the gross margin rate up 299 basis points.
Adjusted gross profit for the quarter increased 10.6% to $625.9 million from $566.2 million, while the adjusted gross profit rate was up 4 basis points. For the six months, adjusted gross profit rose 10.7% to $1.17 billion from $1.06 billion, though the adjusted gross profit rate slipped 6 basis points.
Selling, general and administrative expenses increased 10.5% in the quarter to $430.7 million from $389.7 million, and rose 11.0% in the six months to $837.2 million from $754.1 million. As a percentage of sales, SG&A was flat in the quarter and up 4 basis points for the half year.
Inventory at July 31, 2026, was up $82.3 million, or 11.8%, from a year earlier. Retail inventory increased 12.0%, comparable retail inventory rose 8.4%, and wholesale inventory increased 10.0%.
The company ended the period with 801 company-owned stores and 810 total URBN stores including franchise locations, up from 784 company-owned stores and 793 total stores at the start of the period. During the six months, URBN opened 23 stores and closed 6. The market has reacted to these announcements by moving the company's shares -4.2% to a price of $79.465. Check out the company's full 8-K submission here.
