Urban Outfitters, Inc (URBN) reported a robust 9 per cent increase in total net sales in the final two months of 2025, spanning November-December 2025. Announced in January 2026, this performance was spearheaded by a 9 per cent comparable sales expansion at the Urban Outfitters brand and an 18 per cent growth in the FP Movement activewear label. While the broader apparel sector grappled with shifting consumer sentiment and new tariff complexities, URBN successfully leveraged a diversified multi-channel strategy, balancing high-growth digital engagement with a substantial brick-and-mortar expansion.
Strategic channel diversification and subscription scalability
A significant catalyst for URBN’s record holiday results was the continued acceleration of its Nuuly subscription rental segment, which saw net sales soar by 43 per cent. This growth was supported by a 41 per cent increase in active subscribers, illustrating a structural shift toward the circular economy and value-driven consumption. The company observed a distinct behavior where consumers delayed purchases in anticipation of seasonal events, noted Richard Hayne, CEO, URBN. To navigate this, it optimized its inventory and promotional timing, resulting in a 7 per cent increase in total Retail segment sales and a 13 per cent lift in Wholesale revenues, primarily driven by Free People’s strength in department store channels.
Capital expenditure and global footprint optimization
Unlike many competitors retrenching from physical retail, URBN executed an aggressive growth plan throughout 2025, opening 58 new locations while closing only seven. The strategy focused heavily on the Free People and FP Movement brands to capture the resilient demand for wellness-oriented apparel. By integrating localized store experiences with sophisticated AI-driven personalization, the group successfully mitigated ‘digital fatigue,’ a challenge cited by industry analysts as a primary barrier to conversion in 2026. This infrastructure investment, combined with a disciplined 304-basis-point improvement in gross profit rates earlier in the year, positions the company to maintain its momentum in a fragmented global market.
Urban Outfitters, Inc is a leading lifestyle retailer operating a global portfolio including Anthropologie, Free People, and Nuuly. Focusing on North American and European markets, the company continues to achieve record revenues, supported by a pivot toward subscription models and specialty activewear. Founded in 1970, URBN now maintains nearly 800 stores worldwide.
