Urban Outfitters Reports 7.7% Revenue Growth to $5.55 Billion for Fiscal Year 2025

Urban Outfitters, Inc. reported a significant increase in financial performance for the fiscal year ending January 31, 2025, with net sales reaching approximately $5.55 billion, a 7.7% increase from $5.15 billion in the previous fiscal year. The company's net income also rose to $402.5 million, up 39.9% from $287.7 million in fiscal 2024. This growth was driven by a 4.7% increase in Retail segment sales, a 60.4% rise in Subscription segment sales, and a 15.5% increase in Wholesale segment sales. The gross profit margin improved to 34.7%, compared to 33.3% in the prior year, reflecting higher merchandise markups across all segments.

In terms of operational changes, Urban Outfitters expanded its store footprint, opening 57 new locations while closing 30, resulting in a total of 733 company-owned stores as of January 31, 2025. The Retail segment, which includes brands such as Anthropologie, Free People, and Urban Outfitters, accounted for approximately 88.2% of total consolidated net sales. The Subscription segment, primarily driven by the Nuuly brand, contributed 6.8% to consolidated net sales, reflecting a growing trend in apparel rental services. The company also reported a 51.3% increase in average active subscribers for Nuuly, indicating strong customer engagement.

The filing highlighted strategic initiatives aimed at enhancing customer experience and expanding market presence. Urban Outfitters plans to open approximately 58 new retail locations in fiscal 2026, with a focus on both domestic and international markets. The company is also investing in technology and marketing to support its omni-channel strategy, which integrates physical and digital shopping experiences. Additionally, the company aims to enhance its product offerings and expand its digital capabilities to meet evolving consumer preferences.

Urban Outfitters employed approximately 29,000 individuals as of January 31, 2025, with 85% of employees working in the Retail segment. The company continues to prioritize employee engagement and retention through various training and development programs. The filing also noted that the company is committed to sustainability and social responsibility, with ongoing initiatives to improve supply chain transparency and reduce environmental impact.

Looking ahead, Urban Outfitters anticipates continued growth, although it acknowledges potential risks related to economic conditions, consumer spending patterns, and competition in the retail sector. The company remains focused on leveraging its brand portfolio and expanding its market share while navigating the challenges posed by the dynamic retail landscape.