Urban Outfitters (URBN) 27th Annual ICR Conference 2025 summary

Holiday performance and sales trends

• Achieved 10% total sales growth for the holiday period, surpassing expectations.

• Retail segment comp up 6%, with digital high single-digit positive and stores low single-digit positive.

• Nuuly rental business grew 55% in sales, driven by a 53% increase in subscribers.

• Wholesale up 29%, led by Free People group; Anthropologie retail comp up 10%, Free People up 9%.

• Urban Outfitters down 4%, but North America saw positive regular price sales for the first time in years.

Brand performance and strategic initiatives

• Anthropologie delivered 15 consecutive quarters of comp sales growth and eight with double-digit operating profit growth.

• Focused on customer acquisition, especially millennials, with 30% customer growth and 50% new customer growth in recent years.

• Free People achieved high teens segment margin, with FP Movement delivering a 23% comp and rapid store expansion planned.

• Urban Outfitters is in the early stages of a turnaround, focusing on margin recapture and new customer growth, especially in digital.

• Nuuly expects its first profitable year, with automation and logistics improvements driving future margin gains.

Supply chain and margin management

• Inventory growth expected to align with sales growth, maintaining healthy positioning.

• Gross profit improved by 100 basis points in Q4, with further gains expected, especially from Urban Outfitters.

• Significant reduction in China sourcing, with only 5% of own brand product expected from China next year.

• Dual sourcing and supply chain diversification provide flexibility against tariff risks.