Urban Outfitters Stock Soars 18% Following Strong Q3 Earnings

The retailer exceeded expectations with record revenue, driven by growth in Anthropologie, Free People, and its subscription and wholesale segments.

Urban Outfitters reported Q3 earnings per share of $1.10, surpassing estimates of $0.89, with revenue reaching a record $1.36 billion, up 6.3% year-over-year.
Net income rose 24% to $102.9 million, supported by strong performance in Anthropologie and Free People brands, which saw comparable sales increase by 5.8% and 5.3%, respectively.
The company’s Nuuly subscription service achieved 48.4% sales growth, fueled by a 51% rise in active subscribers, while wholesale revenue climbed 17.4%, led by Free People.
Urban Outfitters brand sales declined 8.9%, prompting executives to evaluate store closures, downsizings, and relocations over the next three years.
Analysts raised price targets for Urban Outfitters stock, which closed at $47.49 after surging 18.3%, reflecting optimism about holiday sales and the company’s strategic outlook.