Q3 2026 Urban Outfitters Inc Earnings Call Transcript
Key Points
- Urban Outfitters Inc (URBN) reported a 12% increase in total revenues and a 13% rise in net income, setting new third-quarter records.
- All brands under URBN produced positive comparable sales across all geographies, with Urban Outfitters achieving double-digit comps in North America and Europe.
- The Nuuly brand experienced a 49% revenue growth, driven by a significant increase in average active subscribers.
- The Free People brand saw a 9% increase in total revenue, with strong growth in both Retail and Wholesale segments.
- The Anthropologie Group achieved an 8% Retail segment comparable sales increase, marking the 19th consecutive quarter of positive comparable sales.
- URBN's gross margin was negatively impacted by tariffs, which reduced the third-quarter gross margin rate by approximately 60 basis points.
- SG&A expenses increased by 14%, leading to a deleveraging of 32 basis points, primarily due to higher marketing spend.
- The company anticipates a more promotional holiday season, which could impact margins despite maintaining annual guidance.
- URBN's Wholesale segment faces more challenging year-on-year comparisons in the second half of the year.
- Despite strong performance, the Urban Outfitters brand in North America still has room for improvement to achieve profitability on an annual basis.
Good day, ladies and gentlemen. Welcome to the Urban Outfitters, Inc., third-quarter fiscal '26 earnings call.
(Operator Instructions)
I'd now like to turn the conference over to Oona McCullough, Executive Director, Investor Relations. Ma'am, you may begin.
Good afternoon and welcome to the URBN third-quarter fiscal 2026 conference call.
Earlier this afternoon, the company issued a press release outlining the financial and operating results for the three- and nine-month period ending October 31, 2025.
The following discussions may include forward-looking statements. Please note that actual results may differ materially from those statements.
Additional information concerning factors that could cause actual results to differ materially from projected results is contained in the company's filings with the Securities and Exchange Commission.
For more detailed commentary on our quarterly performance and the text of today's
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