Urban Outfitters, Inc. delivered a solid Q2 FY2025 (three months ended July 31, 2024) with total URBN sales rising 6% to a record $1.352 billion. Four of five brands posted record quarterly sales and profits, led by Anthropologie and Free People, with Nuuly contributing meaningful subscriber-driven growth. Retail segment comps were positive overall at +2%, with Anthropologie and Free People delivering high-single-digit comps and Urban Outfitters posting a negative high-single-digit comp, offset by double-digit growth in Nuuly and a 15% year-over-year increase in Wholesale revenue driven by Free People. Gross profit rose 8% to $493.3 million and the gross margin expanded 68 basis points to 36.5%, driven by higher initial margins across segments, partially offset by UO markdowns to clear excess inventory. On the expense side, SG&A rose 8% year over year, deleveraging 32 bps as strong brand marketing investments supported traffic gains in Anthropologie, Free People and Nuuly. Total operating income increased 10% to $145.1 million (operating margin 10.7%). Net income grew 13% to $117.5 million ($1.24 diluted EPS). Management signaled continued strength in Nuuly (subscriber growth and profitability); Free People Wholesale and movement momentum; and a deliberate, measured reset for Urban Outfitters North America (UO NA) to regain growth through a five-pillar strategy focused on core customers, expanded price points, disciplined inventory and an omnichannel experience. Looking ahead, management flagged a modest near-term deceleration in Retail sales, guiding Q3 total company sales to mid-single digits, with Retail comps in the low-single digits and Nuuly posting mid-double-digit growth. They expect full-year gross margin improvement of roughly 50–100 basis points, albeit with a ~100bp Q3 margin headwind from higher markdown activity and planned receipts ordered before the recent demand slow-down. The company plans roughly $210 million in capital expenditures for FY25, with substantial store openings (about 57) and closures (about 25), and ongoing investments in logistics, IT, and omnichannel capabilities. The stock remains supported by a diversified brand portfolio, improving gross margins, robust cash generation, and an active store growth plan that leverages URBN’s omnichannel strengths, while the Urban Outfitters brand continues to undergo a strategic reset to recapture growth with a younger customer base.