Urban Outfitters Reports 6.3% Revenue Growth to $1.36 Billion in Q3 Fiscal 2025

Urban Outfitters, Inc. reported a significant increase in financial performance for the third quarter and first nine months of fiscal 2025, ending October 31, 2024. The company achieved net sales of $1.36 billion for the quarter, a 6.3% increase from $1.28 billion in the same period last year. For the nine months, net sales reached $3.91 billion, up 6.7% from $3.67 billion in the prior year. The gross profit for the quarter was $497.3 million, representing a gross profit margin of 36.5%, compared to 35.5% in the previous year. Net income for the quarter was $102.9 million, or $1.12 per share, compared to $83.0 million, or $0.89 per share, in the same quarter last year.

The company noted several strategic developments contributing to its performance. The Retail segment, which includes brands such as Anthropologie and Free People, saw a 3.2% increase in net sales, while the Nuuly segment, focused on apparel rental, experienced a substantial 48.4% increase in sales. The Wholesale segment also reported a 17.4% increase in sales. The growth in the Retail segment was driven by a combination of new store openings and improved comparable sales, particularly in the Anthropologie and Free People brands, which saw increases of 5.8% and 5.3%, respectively.

Operationally, Urban Outfitters expanded its footprint, opening 36 new stores while closing 11, resulting in a total of 731 company-owned stores as of October 31, 2024. The company reported a 10% increase in total inventory year-over-year, amounting to $793.3 million, which reflects planned early receipts of holiday merchandise. The average number of active subscribers in the Nuuly segment increased by 51.2%, indicating strong customer engagement and product adoption rates.

The filing also highlighted the company's focus on managing costs, with selling, general, and administrative expenses rising by 6.7% to $368.6 million for the quarter. This increase was attributed to higher marketing expenses aimed at supporting growth in the customer base and increased sales. The effective tax rate for the quarter was 24.2%, slightly down from 24.3% in the previous year, reflecting favorable impacts from equity awards.

Looking ahead, Urban Outfitters plans to continue its expansion strategy, projecting the opening of approximately 58 new retail locations in fiscal 2025. The company remains optimistic about its growth trajectory, driven by new brand initiatives, digital channel expansion, and ongoing investments in marketing and technology. The management's outlook suggests a commitment to enhancing customer experience and operational efficiency, positioning the company for sustained growth in a competitive retail environment.