Urban Outfitters — Aug 27, 2025 release

Exhibit 99.1 URBAN OUTFITTERS, INC. Second Quarter Results Philadelphia, PA – August 27, 2025 For Immediate Release Contact: Oona McCullough     Executive Director of Investor Relations     (215) 454-4806 URBN Reports Record Q2 Sales and Income PHILADELPHIA, PA, August 27, 2025 – Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced record net income of $143.9 million and earnings per diluted share of $1.58 for the three months ended July 31, 2025. For the six months ended July 31, 2025, net income was a record $252.2 million and earnings per diluted share were $2.73. Total Company net sales for the three months ended July 31, 2025, increased 11.3% to a record $1.50 billion. Total Retail segment net sales increased 7.8%, with comparable Retail segment net sales increasing 5.6%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both retail store sales and digital channel sales. Comparable Retail segment net sales increased 6.7% at Free People, 5.7% at Anthropologie and 4.2% at Urban Outfitters. Subscription segment net sales increased by 53.2% primarily driven by a 48.1% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 18.1% driven by a 19.5% increase in Free People wholesale sales primarily due to an increase in sales to specialty customers. For the six months ended July 31, 2025, total Company net sales increased 11.0% to a record $2.83 billion. Total Retail segment net sales increased 7.1%, with comparable Retail segment net sales increasing 5.2%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both retail store sales and digital channel sales. Comparable Retail segment net sales increased 6.3% at Anthropologie, 5.0% at Free People and 3.2% at Urban Outfitters. Subscription segment net sales increased by 56.1% primarily driven by a 50.3% increase in average active subscribers in the current period versus the prior year period. Wholesale segment net sales increased 21.0% driven by a 22.4% increase in Free People wholesale sales primarily due to an increase in sales to specialty customers. “We are proud to announce record revenues, profits, and earnings per share for the quarter,” said Richard A. Hayne, Chief Executive Officer. “Our success was broad-based, with all five brands achieving positive comparable sales across all geographies. We saw exceptional performance across all of our segments — Retail, Subscription, and Wholesale — and believe these results reflect the strength of our brands, the effectiveness of our strategy, and the talent of our teams. We are confident in our continued momentum,” finished Mr. Hayne.     Net sales by brand and segment for the three and six-month periods were as follows:   Three Months Ended     Six Months Ended     July 31,     July 31,     2025     2024     2025     2024   Net sales by brand                       Anthropologie $ 606,954     $ 569,100     $ 1,176,885     $ 1,095,485   Free People   415,014       365,129       768,126       683,820   Urban Outfitters   333,171       316,715       606,676       586,973   Nuuly   138,932       90,696       263,286       168,638   Menus & Venues   10,684       10,319       19,283       17,775   Total Company $ 1,504,755     $ 1,351,959     $ 2,834,256     $ 2,552,691                           Net sales by segment                       Retail Segment $ 1,289,269     $ 1,196,456     $ 2,419,779     $ 2,259,141   Subscription Segment   138,932       90,696       263,286       168,638   Wholesale Segment   76,554       64,807       151,191       124,912   Total Company $ 1,504,755     $ 1,351,959     $ 2,834,256     $ 2,552,691   For the three months ended July 31, 2025, the gross profit rate increased by 113 basis points compared to the three months ended July 31, 2024, and gross profit dollars increased 14.8% to $566.2 million from $493.3 million. The increase in gross profit rate was primarily due to improved Retail segment markdowns primarily driven by lower markdowns at the Urban Outfitters brand and leverage in occupancy costs due to the increase in comparable Retail segment and Subscription segment net sales. The increase in gross profit dollars was due to higher net sales and the improved gross profit rate. For the six months ended July 31, 2025, the gross profit rate increased by 191 basis points compared to the six months ended July 31, 2024, and gross profit dollars increased 17.0% to $1.06 billion from $901.7 million. The gross profit rate benefited from a non-recurring gain of $4.8 million, or 17 basis points, recorded in the first quarter of fiscal 2026 and store impairment and lease abandonment charges of $4.6 million, or 18 basis points, recorded in the first quarter of fiscal 2025 not repeated in the current year period. The remaining 156 basis point increase in gross profit rate was primarily due to improved Retail segment markdowns primarily driven by lower markdowns at the Urban Outfitters brand and leverage in occupancy costs due to the increase in comparable Retail segment and Subscription segment net sales. The increase in gross profit dollars was due to higher net sales and the improved gross profit rate. As of July 31, 2025, total inventory increased by $91.5 million, or 15.1%, compared to total inventory as of July 31, 2024. Total Retail segment inventory increased by 15.0% and comparable Retail segment inventory increased by 11.3%. Wholesale segment inventory increased by 16.4%. The increase in inventory for both segments was due to increased sales and planned early receipts of merchandise. For the three months ended July 31, 2025, selling, general and administrative expenses increased by $43.6 million, or 12.5%, compared to the three months ended July 31, 2024. Selling, general and administrative expenses deleveraged 28 basis points as a percentage of net sales compared to the three months ended July 31, 2024. The deleverage in selling, general and administrative expenses as a percentage of 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. For the six months ended July 31, 2025, selling, general and administrative expenses increased by $70.7 million, or 10.4%, compared to the six months ended July 31, 2024. Selling, general and administrative expenses leveraged 16 basis points as a percentage of net sales compared to the six months ended July 31, 2024. The leverage in selling, general and administrative expenses as a percentage of net sales was primarily related to lower litigation expenses in the current year period as compared to the prior year period. 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 July 31, 2025, was 21.5%, compared to 23.0% in the three months ended July 31, 2024. The Company’s effective tax rate for the six months ended July 31, 2025, was 21.5%, compared to 23.2% in the six months ended July 31, 2024. The decrease in the effective tax rate for the three and six months ended July 31, 2025, was primarily attributable to the ratio of foreign taxable earnings to global taxable earnings and the release of certain state and local valuation allowances. Net income for the three months ended July 31, 2025, was a record $143.9 million and earnings per diluted share were $1.58. Net income for the six months ended July 31, 2025, was a record $252.2 million and earnings per diluted share were $2.73. 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 six months ended July 31, 2025, the Company repurchased and subsequently retired 3.3 million shares for approximately $152 million. During the twelve months ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of July 31, 2025, 14.7 million common shares were remaining under the program. During the six months ended July 31, 2025, the Company opened a total of 27 new retail locations including: 19 Free People stores (including 10 FP Movement stores), 4 Anthropologie stores and 4 Urban Outfitters stores; and closed 4 retail locations including: 2 Free People stores and 2 Urban Outfitters stores. Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 257 Urban Outfitters stores in the United States, Canada and Europe and websites; 247 Free People stores (including 73 FP Movement stores) in the United States, Canada and Europe, catalogs and websites; 243 Anthropologie 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 July 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 second quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/itmnjypu/. 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, our effective utilization of technological advancements, including in artificial intelligence, 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 such as retaliatory 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. ### (Tables follow)     URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Income (amounts in thousands, except share and per share data) (unaudited)     Three Months Ended     Six Months Ended     July 31,     July 31,     2025     2024     2025     2024   Net sales $ 1,504,755     $ 1,351,959     $ 2,834,256     $ 2,552,691   Cost of sales (excluding store impairment and lease abandonment charges)   938,594       858,674       1,779,031       1,646,420   Store impairment and lease abandonment charges   —       —       —       4,601             Gross profit   566,161       493,285       1,055,225       901,670   Selling, general and administrative expenses   391,774       348,150       752,611       681,911             Income from operations   174,387       145,135       302,614       219,759   Other income, net   8,886       7,429       18,532       13,675            Income before income taxes   183,273       152,564       321,146       233,434   Income tax expense   39,408       35,079       68,934       54,184             Net income $ 143,865     $ 117,485     $ 252,212     $ 179,250                           Net income per common share:                              Basic $ 1.60     $ 1.26     $ 2.78     $ 1.93          Diluted $ 1.58     $ 1.24     $ 2.73     $ 1.89                           Weighted-average common shares outstanding:                              Basic   89,667,451       93,071,401       90,692,646       93,097,694          Diluted   91,167,981       94,684,003       92,304,624       94,842,065                                                   AS A PERCENTAGE OF NET SALES                       Net sales   100.0 %     100.0 %     100.0 %     100.0 % Cost of sales (excluding store impairment and lease abandonment charges)   62.4 %     63.5 %     62.8 %     64.5 % Store impairment and lease abandonment charges   —       —       —       0.2 %          Gross profit   37.6 %     36.5 %     37.2 %     35.3 % Selling, general and administrative expenses   26.0 %     25.8 %     26.5 %     26.7 %           Income from operations   11.6 %     10.7 %     10.7 %     8.6 % Other income, net   0.6 %     0.6 %     0.6 %     0.5 %          Income before income taxes   12.2 %     11.3 %     11.3 %     9.1 % Income tax expense   2.6 %     2.6 %     2.4 %     2.1 %           Net income   9.6 %     8.7 %     8.9 %     7.0 %       URBAN OUTFITTERS, INC. Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited)     July 31,     January 31,     July 31,     2025     2025     2024   ASSETS                 Current assets:                     Cash and cash equivalents $ 332,171     $ 290,481     $ 209,129       Marketable securities   290,664       319,949       352,360       Accounts receivable, net of allowance for doubtful accounts          of $2,388, $1,384 and $1,429, respectively   86,922       74,014       78,749       Inventory   696,199       621,146       604,667       Prepaid expenses and other current assets   213,356       187,206       228,966               Total current assets   1,619,312       1,492,796       1,473,871   Property and equipment, net   1,376,811       1,331,077       1,314,923   Operating lease right-of-use assets   1,011,840       942,666       941,404   Marketable securities   366,336       410,208       209,469   Other assets   336,494       342,733       319,156              Total Assets $ 4,710,793     $ 4,519,480     $ 4,258,823                     LIABILITIES AND SHAREHOLDERS’ EQUITY                 Current liabilities:                     Accounts payable $ 335,985     $ 295,767     $ 299,351       Current portion of operating lease liabilities   227,105       227,149       227,987       Accrued expenses, accrued compensation and other          current liabilities   533,058       552,763       483,080              Total current liabilities   1,096,148       1,075,679       1,010,418   Non-current portion of operating lease liabilities   953,025       871,209       875,174   Other non-current liabilities   81,228       101,088       131,798              Total Liabilities   2,130,401       2,047,976       2,017,390                     Shareholders’ equity:                     Preferred shares; $.0001 par value, 10,000,000 shares          authorized, none issued   —       —       —       Common shares; $.0001 par value, 200,000,000 shares authorized,          89,696,293, 92,281,748 and 92,260,283 shares issued and          outstanding, respectively 9     9     9       Additional paid-in-capital   7,277       15,067       —       Retained earnings   2,604,741       2,503,068       2,279,856       Accumulated other comprehensive loss   (31,635 )     (46,640 )     (38,432 )            Total Shareholders’ Equity   2,580,392       2,471,504       2,241,433              Total Liabilities and Shareholders’ Equity $ 4,710,793     $ 4,519,480     $ 4,258,823         URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited)       Six Months Ended       July 31,       2025     2024   Cash flows from operating activities:             Net income   $ 252,212     $ 179,250   Adjustments to reconcile net income to net cash provided by operating activities:             Depreciation and amortization     61,400       56,552   Non-cash lease expense     106,546       103,146   Provision for deferred income taxes     11,608       9,208   Share-based compensation expense     14,956       15,556   Amortization of tax credit investment     8,587       8,760   Store impairment and lease abandonment charges     —       4,601   Loss on disposition of property and equipment, net     262       420   Changes in assets and liabilities:             Receivables     (12,025 )     (11,606 ) Inventory     (70,611 )     (54,050 ) Prepaid expenses and other assets     (25,095 )     (48,318 ) Payables, accrued expenses and other liabilities     23,336       16,858   Operating lease liabilities     (120,130 )     (116,563 ) Net cash provided by operating activities     251,046       163,814   Cash flows from investing activities:             Cash paid for property and equipment     (107,549 )     (98,854 ) Cash paid for marketable securities     (220,293 )     (166,428 ) Sales and maturities of marketable securities     295,861       204,145   Net cash used in investing activities     (31,981 )     (61,137 ) Cash flows from financing activities:             Proceeds from the exercise of stock options     928       851   Share repurchases related to share repurchase program     (151,935 )     (52,262 ) Share repurchases related to taxes for share-based awards     (21,144 )     (14,977 ) Tax credit investment liability payments     (8,437 )     (2,713 ) Net cash used in financing activities     (180,588 )     (69,101 ) Effect of exchange rate changes on cash and cash equivalents     3,213       (2,768 ) Increase in cash and cash equivalents     41,690       30,808   Cash and cash equivalents at beginning of period     290,481       178,321   Cash and cash equivalents at end of period   $ 332,171     $ 209,129