Urban Outfitters Reports Record Q2 Earnings Amid Strong Sales Growth
Urban Outfitters (NASDAQ:URBN) reported record second-quarter results for fiscal year 2027, with sales rising 10% to $1.7 billion and operating income increasing by 11% to $193 million. Adjusted earnings per diluted share grew 9% to $1.72. All retail brands posted positive comparable sales growth, led by the FP Group (Free People) and Nuuly subscription service. Nuuly revenue surged 29% year-over-year to $179 million in Q2 and achieved its first quarterly operating profit with an average of 484,000 active subscribers. Management expressed confidence for high-single-digit sales growth for the full fiscal year despite ongoing tariff and fuel cost pressures. The Abercrombie brand showed progress but remains a work-in-progress. Urban Outfitters' digital channels outperformed physical stores in North America while European brick-and-mortar locations performed better online.
Topics: financial_results operating_income retail sales_growth