Urban Outfitters (URBN) investor relations material

Executive summary

• Achieved record quarterly and annual sales and operating profits, with total revenue up 10.1% to $1.80 billion in Q4 and strong performance across Retail, Subscription, and Wholesale segments.

• Adjusted earnings per diluted share increased to $1.43 from $1.04 year-over-year; net income for Q4 was $96.3M ($1.05 EPS), adjusted net income was $130.5M ($1.43 EPS).

• All brands delivered positive comparable sales across all geographies, with Urban Outfitters and Nuuly showing double-digit growth.

• Strong customer engagement and robust traffic drove sales both in stores and online.

• Nuuly apparel rental business saw double-digit subscriber and revenue growth.

Financial highlights

• Q4 net sales rose 10.1% year-over-year to $1.80 billion; FY26 net sales up 11.1% to $6.17 billion.

• Q4 gross profit increased 13.6% to $599.2 million, with gross margin up 101 bps to 33.3%.

• Q4 operating income was $158.7 million (8.8% margin); adjusted net income was $131 million.

• SG&A expenses increased 9.5% in Q4 but leveraged 14 bps as a percentage of sales.

• Cash and marketable securities totaled $1.16 billion at quarter end.

Outlook and guidance

• Management highlighted continued momentum in the Nuuly subscription business and strong multi-segment growth.

• Q4 company sales expected to grow high single digits; Retail segment comps projected mid-single digit positive.

• Urban Outfitters brand expected to deliver high single-digit comps, Anthropologie mid-single digit, Free People low to mid-single digit.

• Nuuly anticipated to achieve mid-double-digit revenue growth; Wholesale segment to see mid-single-digit growth.

• Full-year gross profit margin expected to increase by ~100 basis points.