Urban Outfitters reported record first-quarter net income of $115.7 million on Wednesday, or $1.30 per diluted share, as total net sales rose 11.4% to $1.48 billion for the three months ended April 30, 2026.
Economic uncertainty has not dented the spending habits of Urban Outfitters' shoppers, CEO Richard Hayne said
Smith Collection /Gado / Getty Images
Urban Outfitters reported record first-quarter net income of $115.7 million on Wednesday, or $1.30 per diluted share, as total net sales rose 11.4% to $1.48 billion for the three months ended April 30, 2026.
Earnings per share beat analyst expectations of $1.14, according to The Wall Street Journal. Revenue also topped the consensus estimate of $1.46 billion.
Growth was spread evenly across the company's three segments. Retail net sales reached $1.22 billion, an 8% increase, supported by comparable retail net sales growth of 5.6% — a result of high single-digit gains in digital channel sales and mid single-digit gains in stores, the company said. Nuuly, the company's apparel rental service, drove subscription segment net sales up 34.5%, and the wholesale segment added 24.8%.
The Free People group was a standout performer. The segment, which includes the Free People brand and its activewear division FP Movement, posted 17% sales growth in the quarter. Harrington, who oversees both the Free People group and the Urban Outfitters brand, described the quarter as exceptionally strong, pointing to record-low markdown rates and gains spread across the full merchandise assortment.
The company intends to restructure Free People and FP Movement into separate, independently operated divisions going forward. "We have reached a critical inflection point where we no longer view this as parent and sub brand," Harrington told The Journal.
Economic uncertainty has not dented the spending habits of Urban Outfitters' shoppers, CEO Richard Hayne said, noting that its largely higher-income customer base has remained engaged. "Our customers are in excellent shape. They are financially secure and are more interested in fashion than price," Hayne told The Journal.
Gross profit rose 10.9% to $542.6 million, though the gross profit rate dipped 16 basis points compared to the prior year quarter, partly due to a non-recurring $4.8 million gain recorded in the prior year period that was not repeated, the company said. Tariffs also created some pressure on initial merchandise costs.
During the quarter, Urban Outfitters repurchased and retired 4.6 million shares for approximately $300 million under its board-authorized buyback program, the company said.
The company expects revenue to increase in the high single digits during the current quarter.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.