Urban Outfitters posted outstanding quarterly results well above estimates and positive guidance, but fears about future customer spending and macro risks triggered a sharp correction in its shares, making it an attractive re-entry candidate if prices drop significantly.

$URBN (+1.52%) Urban Outfitters reported earnings

Q3 FY2025 results ended October 31st 2024

- Revenue: $1.36B, +6.3% YoY

- Net income: $102.9M, +24% YoY

- EPS: $1.10, +25% YoY

- Gross profit: $497.3M, +9.4% YoY

CEO Richard Hayne: "We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – Retail, Subscription and Wholesale."

Revenue & Growth

- Anthropologie: $588M, +7% YoY

- Free People: $366M, +10% YoY 

- Urban Outfitters: $301M, -7% YoY

- Nuuly: $97M, +48% YoY

- Total Retail segment: $1.18B, +3.2% YoY

Profits & Financials

- Gross margin: 36.5% vs 35.5% YoY

- Operating margin: 9.4% vs 8.5% YoY

- SG&A expenses: $369M, +6.7% YoY

- Cash and equivalents: $183M

- Marketable securities: $581M

Business Highlights

- Opened 36 new retail locations

- Closed 11 retail locations

- Total store count: 722 stores across brands

- Repurchased 1.2M shares for ~$52M

- Maintained strong inventory management with 10% YoY increase

Future Outlook

- Expects total comparable sales similar to Q3 results

- Optimistic about Holiday demand

- Continuing retail expansion strategy

- Focus on digital channel growth

- Investment in customer acquisition through marketing

Urban Outfitters Earnings $URBN (+1.52%)