PHILADELPHIA - Urban Outfitters Inc. (NASDAQ:URBN) reported better-than-expected third quarter earnings and revenue on Tuesday, sending shares up 6.5% in after-hours trading.
The lifestyle retailer posted adjusted earnings per share of $1.10, surpassing analyst estimates of $0.85. Revenue rose 6.3% YoY to $1.36 billion, topping expectations of $1.34 billion.
Comparable retail segment sales increased 1.5%, driven by low single-digit growth in both digital and store sales. By brand, Anthropologie saw a 5.8% comp increase and Free People rose 5.3%, while Urban Outfitters declined 8.9%.
"We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations," said CEO Richard A. Hayne. "These results were driven by outperformance across all three business segments - Retail, Subscription and Wholesale."
The company expressed optimism about the holiday season, with Hayne stating, "We're optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results."
Gross profit margin expanded 105 basis points to 36.5%, benefiting from higher initial merchandise markups across all segments.
For the first nine months of fiscal 2025, Urban Outfitters reported net income of $282.2 million, or $2.99 per diluted share, on revenue of $3.91 billion.
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