Urban Outfitters, Inc. delivered a standout second quarter (QQ2 2026) with total sales of $1.505 billion, up 11% year over year, and net income of $144 million (EPS $1.58). The quarter marked a broad-based acceleration across the portfolio: Nuuly achieved a record, highly profitable quarter with 53% revenue growth and a 9% operating margin, while Anthropologie, Free People and Urban Outfitters all posted positive comps and meaningful margin improvements. Gross margin expanded 113 basis points to 37.6%, driven by lower markdowns and occupancy leverage amid strong top-line growth; SG&A rose 13% but deleveraged just 28 bps. The company reaffirmed a path to a year of ~100 basis points of gross margin expansion, albeit offset by tariff headwinds estimated at ~75 bps in the second half. Management remains focused on brand-led growth, owned-brand expansion, and selective pricing to preserve value while protecting the customer experience. The near-term outlook calls for continued top-line momentum and targeted investments, with the back half of the year expected to leverage marketing and store openings to support a high single-digit sales trajectory for the quarter and mid- to high-single-digit growth for the full year on a combined basis. The company also outlined a substantial store-opening plan (approximately 69 openings and 17 closings in FY2026) and continued European expansion through Urban Outfitters Europe, alongside Maeve’s standalone branding initiative at Anthropologie.