Urban Outfitters Inc
URBN
$74.74 -1.25%
Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Apparel Retail
Q2 2026
Published: Aug 28, 2025

Earnings Highlights

  • Revenue of $1.50B up 11.3% year-over-year
  • EPS of $1.57 increased by 27% from previous year
  • Gross margin of 37.6%
  • Net income of 143.87M
  • "Pricing is really the last piece. And that's intentional. We're focused on protecting opening price points and only targeting areas where we believe we could gently raise some prices without significantly affecting the overall customer experience." - Frank Conforti
URBN
Company URBN

Executive Summary

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.

Key Performance Indicators

Revenue
Increasing
1.50B
QoQ: 13.18% | YoY: 11.30%
Gross Profit
Increasing
566.16M
37.62% margin
QoQ: 15.76% | YoY: 14.77%
Operating Income
Increasing
174.39M
QoQ: 36.00% | YoY: 20.16%
Net Income
Increasing
143.87M
QoQ: 32.78% | YoY: 22.45%
EPS
Increasing
1.60
QoQ: 35.59% | YoY: 26.98%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 1,504.76 1.57 +11.3% View
Q1 2026 1,329.50 1.16 +10.7% View
Q4 2025 1,636.12 1.28 +10.1% View
Q3 2025 1,361.86 1.09 +6.3% View
Q2 2025 1,351.96 1.24 +6.3% View