Urban Outfitters reports record second-quarter sales driven by Nuuly growth

Urban Outfitters Inc. reported record second-quarter net sales of approximately $1.66 billion to $1.7 billion, representing a 10.4% increase compared to the previous year. The company's growth was significantly driven by its Nuuly subscription rental business, which saw net sales rise by nearly 29% to roughly $179 million. Nuuly's average active subscribers increased by 30.4% year-over-year, surpassing 500,000 active subscribers in early June.

Retail segment sales grew by 8%, with comparable retail sales increasing by 6.2%. Performance varied across brands: FP Group saw a 10% increase in comparable retail sales, Urban Outfitters grew by 8.4%, and Anthropologie rose by 3%. Wholesale sales also experienced an 18.6% increase.

Net income for the quarter was reported at $240.7 million, though this figure included $95.7 million in tariff refunds. Excluding these one-time benefits and other specific tax and interest items, adjusted net income stood at $149.3 million, or $1.72 per diluted share.