Urban Outfitters Q4 EPS Soars 37% on 10% Sales Growth, Nuuly Rentals Up 42%
Urban Outfitters posted a 37% year-over-year jump in EPS in fiscal Q4’26 and achieved 10% sales growth driven by its Nuuly rental segment. Rental revenue climbed 42% while operating margins expanded ahead of FY27, reflecting strengthening performance across store and digital channels.
1. Q4 Financial Performance
Urban Outfitters delivered a 37% year-over-year increase in Q4’26 EPS and reported 10% revenue growth, surpassing internal forecasts. Strength in core apparel and home categories across both store and e-commerce channels underpinned the quarter’s outperformance.
2. Nuuly Rental Segment Momentum
The Nuuly rental service achieved 42% revenue growth year-over-year as subscription volumes rose and purchase conversion rates improved. This segment expansion contributed meaningfully to overall top-line growth and incremental profit.
3. Margin Expansion and FY27 Outlook
Operating margins expanded through gross margin improvements and disciplined expense management in Q4, lifting profitability. Management indicated continued margin enhancement entering fiscal 2027 as the company leverages cost efficiencies and scale across its omnichannel business.