Total Company net sales for the three months ended April 30, 2026, increased 11.4% to a record $1.48 billion. Total Retail segment net sales increased 8.0%, with comparable Retail segment net sales increasing 5.6%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 9.8% at FP Group, 9.3% at Urban Outfitters and 1.9% at Anthropologie. Subscription segment net sales increased 34.5% primarily driven by a 33.3% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 24.8% driven by a 26.2% increase in FP Group wholesale sales due to an increase in sales to specialty customers.
"We are pleased to report record first quarter sales and earnings driven by positive retail segment ‘comps' at all brands and impressive double-digit growth in both our Wholesale and Subscription segments," said Richard A. Hayne, Chief Executive Officer. "Our customers remain engaged and are responding to compelling fashion trends, giving us confidence in URBN's continued success," finished Mr. Hayne.
Net sales by brand and segment for the three-month periods were as follows:
Three Months Ended
April 30,
2026
2025
Net sales by brand
Anthropologie
$
589,073
$
569,931
FP Group
411,719
353,112
Urban Outfitters
304,727
273,505
Nuuly
167,264
124,354
Menus & Venues
8,562
8,599
Total Company
$
1,481,345
$
1,329,501
Net sales by segment
Retail Segment
$
1,220,914
$
1,130,510
Subscription Segment
167,264
124,354
Wholesale Segment
93,167
74,637
Total Company
$
1,481,345
$
1,329,501
For the three months ended April 30, 2026, the gross profit rate decreased by 16 basis points compared to the three months ended April 30, 2025, and gross profit dollars increased 10.9% to $542.6 million from $489.1 million. The decrease in gross profit rate was due to a non-recurring gain of $4.8 million, or 36 basis points, recorded in the prior year quarter not repeated in the current year quarter. This was partially offset by a 20 basis point improvement in the underlying gross profit rate primarily due to improved Retail segment markdowns driven by lower markdowns at FP Group and Urban Outfitters, partially reduced by deleverage in initial merchandise costs due to tariffs. The increase in gross profit dollars was due to higher net sales.
As of April 30, 2026, total inventory increased by $63.1 million, or 9.5%, compared to total inventory as of April 30, 2025. Total Retail segment inventory increased 10.6% and Retail segment comparable inventory increased 10.0%. Wholesale segment inventory decreased 1.2%. The increase in Retail segment inventory was due to the increase in net sales as well as early receipts to reduce the potential risk of shipping delays due to the Middle East conflict.
For the three months ended April 30, 2026, selling, general and administrative expenses increased by $42.0 million, or 11.7%, compared to the three months ended April 30, 2025. Selling, general and administrative expenses deleveraged 5 basis points as a percentage of net sales compared to the three months ended April 30, 2025, which includes a discrete benefit of $6.9 million, or 47 basis points, in the current year quarter due to the reversal of a litigation accrual, offset by 52 basis points of deleverage primarily related to marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, along with increased technology investments to support AI initiatives. The dollar growth in selling, general and administrative expenses was primarily due to increased store payroll expenses to support the growth in Retail segment store net sales, as well as increased marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments.
The Company's effective tax rate for the three months ended April 30, 2026, was 20.7%, compared to 21.4% in the three months ended April 30, 2025. The decrease in the effective tax rate for the three months ended April 30, 2026, was primarily attributable to the favorable impact of equity activity in the current year quarter.
Net income for the three months ended April 30, 2026, was a record $115.7 million and earnings per diluted share were $1.30.
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 three months ended April 30, 2026, the Company repurchased and subsequently retired 4.6 million shares for approximately $300 million. During the year ended January 31, 2026, the Company repurchased and subsequently retired 3.3 million shares for approximately $154 million. As of April 30, 2026, 10.0 million common shares were remaining under the program.
Store data for the three months ended April 30, 2026, was as follows:
January 31,
April 30,
2026
Openings
Closings
2026
Anthropologie NA
234
2
—
236
Anthropologie EU
20
—
—
20
Total Anthropologie
254
2
—
256
Free People NA
167
3
1
169
FP Movement NA
88
6
—
94
Free People EU
13
—
—
13
Total FP Group
268
9
1
276
Urban Outfitters NA
177
—
1
176
Urban Outfitters EU
76
—
—
76
Total Urban Outfitters
253
—
1
252
Menus & Venues
9
—
1
8
Total Company-Owned Stores
784
11
3
792
Franchisee-Owned Stores(1)
9
—
—
9
Total URBN
