Urban Outfitters Q1 Sales Grow 11.4% to $1.48B, EPS Tops Estimates
URBN•Urban Outfitters posted record first-quarter net income of $115.7 million and delivered 11.4% sales growth to $1.48 billion, with EPS of $1.30 beating estimates. Retail sales rose 8%, subscription revenue jumped 34.5%, wholesale climbed 24.8%, and the company repurchased 4.6 million shares for about $300 million.
1. Q1 Financial Highlights
Urban Outfitters delivered record net income of $115.7 million, or $1.30 per diluted share, on net sales of $1.48 billion for the quarter. Gross profit rose 10.9% to $542.6 million, while the gross profit rate dipped 16 basis points due to a prior-year non-recurring gain and tariff pressures.
2. Segment Growth Breakdown
Retail net sales reached $1.22 billion, up 8% with comparable retail sales growth of 5.6% driven by high single-digit digital gains and mid single-digit store gains. The Nuuly subscription service saw net sales surge 34.5%, and the wholesale segment recorded a 24.8% increase.
3. Free People and FP Movement Reorganization
The Free People group, including FP Movement activewear, achieved 17% sales growth and posted record-low markdown rates. The company will restructure Free People and FP Movement into separate, independently operated divisions to capitalize on their scale and distinct brand momentum.
4. Share Repurchase and Guidance
During the quarter, the company repurchased and retired 4.6 million shares for approximately $300 million under its board-authorized buyback program. Management expects revenue growth in the high single digits for the upcoming quarter.
