Urban Outfitters FY27 Q2 sales rise 10% as Nuuly subscribers lift subscription revenue, company says
URBN•Margins and earnings
- Adjusted gross margin held at 37.7%; occupancy and delivery leverage offset higher markdowns, tariff impacts, and inbound freight fuel surcharges.
- Adjusted operating margin stayed at 11.6%.
- Adjusted EPS rose to $1.72 as sales growth outweighed higher marketing, payroll, and AI technology spending.
Quarterly sales and segment performance
- Urban Outfitters posted fiscal 2027 Q2 net sales of $1.66 billion, up 10.4%, driven by retail growth, subscription expansion, and wholesale gains.
- Retail segment sales rose 8% to $1.39 billion; comparable sales climbed 6% on higher digital demand and stronger store traffic.
- Subscription revenue increased 29% to $178.6 million, attributed to a 30% rise in average active subscribers.
