Total URBN sales grew by 9%, reaching a Q4 record of $1.6 billion. Four of our five brands performed remarkably well, posting record fourth-quarter sales.
— Frank Conforti
03Detailed Report
URBN
Company URBN
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
URBN reported a record fourth quarter (Q4 FY2025) with total URBN sales of approximately $1.636 billion, up 9% year over year, driven by broad strength across Anthropologie and Free People brands and a robust Nuuly subscriber surge. Gross profit rose 17% to about $527.7 million, with gross margin improving to 32.3% (+~200 bps YoY), supported by higher initial margins and fewer markdowns, particularly in Urban Outfitters (UO) where markdown activity moderated versus the prior year. Operating income reached roughly $125 million, a 54% year-over-year increase, with a 7.7% operating margin (+220 bps). Net income for the quarter was cited by management at $98 million in the earnings call, with adjusted results tracking a similarly strong top-line trajectory, reflecting URBN’s adjusted commentary during the call.
Key Performance Indicators
Revenue
Increasing
1.64B
QoQ: 20.14% | YoY: 10.09%
Gross Profit
Increasing
527.68M
32.25% margin
QoQ: 6.11% | YoY: 18.67%
Operating Income
Increasing
125.31M
QoQ: -2.62% | YoY: 68.83%
Net Income
Increasing
120.30M
QoQ: 16.90% | YoY: 151.93%
EPS
Increasing
1.30
QoQ: 16.07% | YoY: 154.90%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: Q4 2025 revenue of $1.636B, up 9% YoY; Gross profit: $528M, gross margin 32.3% (up ~200 bps YoY); Operating income: $125M, operating margin ~7.66%; Net income: about $98M in management discussions (GAAP shown as $120.3M in the formal data, with adjusted figures used in communications); EPS (diluted): $1.28–$1.04 range depending on basis used in the discussion; FCF (free cash flow): $281.9M; Operating cash flow: $320.5M; Cash at end of period: $290.5M; Net debt: $807.9M; Debt/Total capitalization: ~30.8%; Inventory turnover and days on hand imply improving turns after inventory discipline; Capex: $38.5M for Q4, with FY26 guidance around $240M; Net new stores planned in FY26: ~58 openings and ~19 closures; FY26 sales guidance: mid-single-digit growth; Gross margin uplift target: 50–100 bps; Tax rate guidance: ~24% for the year and ~23% for Q1; Share repurchase planned to offset dilution.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.64B
10.09%
20.14%
Gross Profit
527.68M
18.67%
6.11%
Operating Income
125.31M
68.83%
-2.62%
Net Income
120.30M
151.93%
16.90%
EPS
1.30
154.90%
16.07%
Key Financial Ratios
Gross Profit Margin
Fair
32.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
7.66%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
7.35%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
2.66%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.87%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.39
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.44
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
10.63x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
2.07x
Price-to-book ratio reasonable for profitable companies
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