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For the year ended January 31, 2025, total Company net sales increased 7.7% to a record $5.55 billion. Total Company net sales for the year ended January 31, 2025, increased 7.6% compared to total Company adjusted net sales for the year ended January 31, 2024. Total Retail segment net sales increased 4.7%, with comparable Retail segment net sales increasing 3.4%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 8.9% at Free People and 7.7% at Anthropologie and decreased 8.7% at Urban Outfitters. Subscription segment net sales increased by 60.4%. Subscription segment net sales increased by 56.8% compared to Subscription segment adjusted net sales for the year ended January 31, 2024. The Subscription segment adjusted net sales increase was primarily driven by a 51.3% increase in average active subscribers in the current year versus the prior year period. Wholesale segment net sales increased 15.5% driven by a 17.9% increase in Free People wholesale sales due to an increase in sales to specialty customers and department stores, partially offset by a decrease in Urban Outfitters wholesale sales.

“We are pleased to announce record Q4 revenues and full-year profits,” said Richard A. Hayne, Chief Executive Officer. “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,” finished Mr. Hayne.

Net sales by brand and segment for the three and twelve-month periods were as follows:

Adjusted net sales by brand and segment for the three and twelve-month periods were as follows:

(1) Anthropologie includes the Anthropologie and Terrain brands.
(2) Free People includes the Free People and FP Movement brands.
(3) The Subscription segment (formerly known as the Nuuly segment) includes the Nuuly brand, which is primarily a monthly women's apparel subscription rental service.

For the three months ended January 31, 2025, the gross profit rate increased by 304 basis points compared to the three months ended January 31, 2024, and gross profit dollars increased 21.5% to $527.7 million from $434.2 million. For the three months ended January 31, 2025, the gross profit rate as a percentage of net sales increased by 203 basis points compared to the adjusted gross profit rate as a percentage of adjusted net sales in the three months ended January 31, 2024. Adjusted gross profit dollars increased by 16.8% to $527.7 million from $451.9 million. The increase in adjusted gross profit rate was primarily due to improved Retail segment markdowns driven by lower markdowns at Urban Outfitters, which were partially offset by an increase at Free People. The increase in adjusted gross profit dollars was due to higher adjusted net sales and the improved adjusted gross profit rate.

For the year ended January 31, 2025, the gross profit rate increased by 142 basis points compared to the year ended January 31, 2024, and gross profit dollars increased 12.3% to $1.93 billion from $1.72 billion. For the year ended January 31, 2025, the adjusted gross profit rate as a percentage of net sales increased by 122 basis points compared to the adjusted gross profit rate as a percentage of adjusted net sales in the year ended January 31, 2024. Adjusted gross profit dollars increased by 11.5% to $1.93 billion from $1.73 billion. The increase in adjusted gross profit rate for the year ended January 31, 2025, was primarily due to higher initial merchandise markups for all segments primarily driven by Company cross-functional initiatives. The increase in adjusted gross profit dollars was due to higher adjusted net sales and the improved adjusted gross profit rate.

As of January 31, 2025, total inventory increased by $70.9 million, or 12.9%, compared to total inventory as of January 31, 2024. Total Retail segment inventory increased 10.1%. Retail segment comparable inventory increased 11.3%. Wholesale segment inventory increased 43.7%. The increase in inventory for both segments was to support increased sales and planned early receipts.

For the three months ended January 31, 2025, selling, general and administrative expenses increased by $31.9 million, or 8.6%, compared to the three months ended January 31, 2024. Selling, general and administrative expenses leveraged 33 basis points as a percentage of net sales and expressed as a percentage of adjusted net sales leveraged 18 basis points compared to the three months ended January 31, 2024. The leverage in selling, general and administrative expenses as a rate to adjusted net sales was primarily related to a leverage in store payroll expenses due to the Retail segment stores net sales growth. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth.

For the year ended January 31, 2025, selling, general and administrative expenses increased by $113.7 million, or 8.5%, compared to the year ended January 31, 2024. Selling, general and administrative expenses deleveraged 19 basis points as a percentage of net sales and expressed as a percentage of adjusted net sales deleveraged 22 basis points compared to the year ended January 31, 2024. The deleverage in selling, general and administrative expenses as a rate to adjusted net sales was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth.

The Company’s effective tax rate for the three months ended January 31, 2025, was 8.1%, compared to 25.4% in the three months ended January 31, 2024. The Company's effective tax rate for the year ended January 31, 2025 was 19.5%, compared to 24.6% in the year ended January 31, 2024. The decrease in the effective tax rate for the three months and year ended January 31, 2025, was primarily due to the tax benefit from the release of a portion of our income tax reserves as a result of a lapse of the statute of limitations for federal tax purposes. The adjusted effective tax rate for the three months ended January 31, 2025, was 25.0%, compared to 25.3% for the three months ended January 31, 2024. The Company’s adjusted effective tax rate for the year ended January 31, 2025, was 23.9%, compared to 24.6% in the year ended January 31, 2024.

Net income for the three months ended January 31, 2025, was $120.3 million and earnings per diluted share were $1.28. Adjusted net income for the three months ended January 31, 2025 was $98.1 million and adjusted earnings per diluted share were $1.04. Net income for the year ended January 31, 2025, was a record $402.5 million and earnings per diluted share were $4.26. Adjusted net income for the year ended January 31, 2025, was $383.9 million and adjusted earnings per diluted share were $4.06.

On June 4, 2019, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. During the twelve months ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of January 31, 2025, 18.0 million common shares were remaining under the program.

During the twelve months ended January 31, 2025, the Company opened a total of 57 new retail locations including: 37 Free People stores (including 25 FP Movement stores), 13 Anthropologie stores and 7 Urban Outfitters stores; and closed 30 retail locations including: 14 Urban Outfitters stores, 11 Anthropologie stores and 5 Free People stores.

Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 255 Urban Outfitters stores in the United States, Canada and Europe and websites; 239 Anthropologie stores in the United States, Canada and Europe, catalogs and websites; 230 Free People stores (including 63 FP Movement stores) in the United States, Canada and Europe, catalogs and websites, 9 Menus & Venues restaurants, 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores as of January 31, 2025. Free People, FP Movement and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company’s Retail segment. Nuuly is primarily a women's apparel subscription rental service which offers a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces.

A conference call will be held today to discuss fourth quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/g8t6it8j/.

As used in this document, unless otherwise defined, "Anthropologie" refers to the Company's Anthropologie and Terrain brands and "Free People" refers to the Company's Free People and FP Movement brands.

This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, including geopolitical instability, impacts of the conflict in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises (such as the coronavirus (COVID-19)), labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs, border adjustment taxes or increases in duties or quotas), the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.

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Important Information Regarding Non-GAAP Financial Measures

In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include store impairment and lease abandonment charges, a release of income tax reserves, an asset impairment charge and a change in revenue recognition method for Nuuly. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures for fiscal 2025 and 2024 that exclude the impact of these non-core business items.

We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.