URBN delivered a solid QQ3 2025, underscored by a 6% rise in total company sales to about $1.361–$1.4 billion and meaningful gross-margin expansion. The quarter showcased a bifurcated brand trajectory: Anthropologie and Free People/ FP Movement led top-line growth with healthy margin progression, while Urban Outfitters (UO) posted a mid-to-high-single-digit comp decline that remains the key near-term drag on profitability alene. Nuuly, URBN’s fashion-rental platform, accelerated with 48% revenue growth and a mid-single-digit operating profit, positioning the business for a first full year of positive operating cash flow in the near term. Net income rose ~24% YoY to $103 million, and EPS advanced to $1.10 (diluted), driven by a 9% growth in gross profit to $497 million and a gross margin of ~36.5%, up ~105 bps year over year. SG&A rose 7% YoY, broadly in line with topline expansion, as URBN invested in marketing across Anthropologie, Free People, FP Movement and Nuuly to sustain and accelerate growth. Looking ahead, management guided for a Q4 with mid-single-digit total company sales growth, mid-to-high single-digit Retail comps, and mid-double-digit Nuuly revenue growth, along with ~100 bps gross-margin expansion vs. the prior year. The near-term hurdle remains UO’s turn-back from loss to profitability and the cadence of top-line improvements needed to leverage fixed costs. With Nuuly nearing profitability and Anthropologie/Free People/ FP Movement driving the majority of the earnings uplift, URBN’s investment thesis hinges on a continued brand-diversified growth profile and disciplined capital allocation (store openings/closings, capex guidance of ~$210 million). Management’s commentary highlights a resilient consumer backdrop into the holiday season, a return to more stable promotions, and a strong emphasis on cross-brand customer acquisition. This suggests URBN is transitioning toward a more profitable, multi-brand growth engine, albeit with execution risks tied to UO’s recovery and macro consumer dynamics.