PHILADELPHIA, PA — Urban Outfitters, Inc. (NASDAQ: URBN) has announced a record-breaking fiscal year, achieving net income of $402.5 million and earnings per diluted share of $4.26 for the year ended January 31, 2025. The company also reported strong fourth-quarter results with net income of $120.3 million and diluted EPS of $1.28.
Key Financial Achievements
For the fourth quarter of 2025, Urban Outfitters’ total net sales rose 10.1% year-over-year to a record $1.64 billion. Gross profit increased significantly by 21.5% to $527.7 million, fueled by improved merchandise margins and higher sales across divisions. Diluted EPS for the quarter grew 85% year-over-year to $1.28.
For the full year, total net sales climbed 7.7% to a record $5.55 billion, supported by robust growth in multiple business segments. Gross profit for 2025 increased 12.3% year-over-year to $1.93 billion, reflecting higher merchandise markups and operational efficiencies. Adjusted earnings per diluted share expanded to $4.06, up from $3.23 in the prior year.
“We are pleased to announce record Q4 revenues and full-year profits,” said Richard A. Hayne, Chief Executive Officer. “Our success was driven by strength across all three segments – Retail, Subscription, and Wholesale. We believe these results demonstrate the effectiveness of our strategic initiatives and give us confidence in URBN’s continued success.”
Growth Highlights
The Retail segment, which includes brands like Anthropologie, Free People, and Urban Outfitters, saw a 4.7% increase in total net sales for the year. Comparable Retail segment sales rose 3.4%, driven by mid single-digit growth in digital sales and modest growth in retail store sales. Strong performances at Anthropologie (up 7.7%) and Free People (up 8.9%) offset an 8.7% decline at Urban Outfitters.
The Subscription segment, led by the Nuuly clothing rental service, delivered standout growth, with net sales increasing by 60.4% year-over-year, driven by a 51.3% rise in average active subscribers.
The Wholesale segment also posted robust growth, with net sales up 15.5% for the year. This was propelled by a 17.9% increase in Free People wholesale sales, reflecting higher demand from specialty and department store customers.
Strategic Initiatives
Urban Outfitters attributed its record results to successful strategic initiatives focusing on digital transformation, customer engagement, and merchandise optimization. The company also continued its expansion, opening 57 new retail locations during the fiscal year, including 25 Free People Movement stores.
Additionally, the company leveraged its share repurchase program, buying back 1.2 million shares valued at $52 million during 2025. A further 18 million shares remain available for repurchase.
Outlook
Urban Outfitters enters 2026 well-positioned for sustainable growth. The company’s focus on innovation, investments in digital capabilities, and expansion into high-growth segments like Subscription are expected to drive long-term success.
With record-breaking results and clear strategic vision, Urban Outfitters continues to solidify itself as a leader in the global retail industry.
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