Urban Outfitters has enjoyed a highly successful first quarter, with its net sales growing by 10.7% year-over-year and its net income soaring by 75% to a record $108.3 million.
The brands under the company’s portfolio, including Urban Outfitters, Nuuly, Anthropologie, and Free People, saw their total inventory rise by 14.6% to $84.8 million.
Urban Outfitters expanded its retail footprint in the first quarter by opening 13 more stores, with 9 new Free People locations.
Richard A. Hayne, Urban Outfitter’s CEO said: “Our success was driven by strength across all three segments—retail, subscription, and wholesale. We believe these results demonstrate the effectiveness of our strategic initiatives and give us confidence in URBN’s continued success.”
The fashion retailer was able to mitigate the headwinds from tariffs in its first quarter with a diversified supply chain.
Frank Conforti, co-president and Chief Operating Officer added in an earnings call: “Although tariffs present a temporary headwind to our business, we are confident in our ability to manage through this environment and still achieve 50 to 100 basis points of gross margin improvement for fiscal year 2026.”
Moving forward, the company projects a high-single-digit increase in company sales in the second quarter. Additionally, the company predicted that retail comparable sales would go up by mid-single digits.
Meanwhile, the retailer has been ramping up its marketing campaigns as it aims to expand its brand outreach.
It recently launched a pop-up designed to advertise lifestyle products to college students and teamed up with Nike for a new shopping experience.
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