Overview
- Earnings per share reached $1.28 on record net sales of $1.53 billion, with net income rising to $116.4 million as revenue grew 12.3% year over year.
- Retail segment net sales rose 9.6% on an 8% comp gain (Urban Outfitters +12.5%, Anthropologie +7.6%, Free People +4.1%), Wholesale increased 7.6%, and Nuuly revenue jumped 48.7% on roughly 42% growth in average active subscribers.
- Gross profit climbed 13.3% to $563.3 million with a 31‑basis‑point margin improvement to 36.8%, reflecting lower markdowns and occupancy leverage, and included a $2 million impairment.
- Inventory increased $46.5 million, or 5.9%, characterized as aligned with higher sales; digital comps slightly exceeded store comps, and the company repurchased 3.3 million shares year to date.
- Shares rose roughly 10%–15% following the report as firms including Morgan Stanley, Barclays, UBS, Wells Fargo, and Telsey raised price targets, while management noted about a 60‑basis‑point tariff drag in Q3 that could be roughly 75 basis points in Q4.