Urban Outfitters — Feb 25, 2026 release

Exhibit 99.1 URBAN OUTFITTERS, INC. Fourth Quarter Results Philadelphia, PA – February 25, 2026 For Immediate Release Contact: Oona McCullough     Executive Director of Investor Relations     (215) 454-4806 URBN Reports Record FY26 Q4 Sales and Operating Results PHILADELPHIA, PA, February 25, 2026 – Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced net income of $96.3 million and earnings per diluted share of $1.05 for the three months ended January 31, 2026. For the three months ended January 31, 2026 and 2025, adjusted net income was $130.5 million and $98.1 million, respectively, and adjusted earnings per diluted share were $1.43 and $1.04, respectively. For the year ended January 31, 2026, net income was $464.9 million and earnings per diluted share were $5.06. For the years ended January 31, 2026 and 2025, adjusted net income was $499.2 million and $380.3 million, respectively, and adjusted earnings per diluted share were $5.44 and $4.03, respectively. Adjusted net income and earnings per diluted share for the three months and year ended January 31, 2026, excludes a charitable contribution to a donor-advised fund. Adjusted net income and earnings per diluted share for the three months and year ended January 31, 2025, excludes a release of income tax reserves. See “Reconciliation of Non-GAAP Financial Measures” included at the end of this release. Total Company net sales for the three months ended January 31, 2026, increased 10.1% to a record $1.80 billion. Total Retail segment net sales increased 7.7%, with comparable Retail segment net sales increasing 5.5%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both digital channel sales and retail store sales. Comparable Retail segment net sales increased 9.6% at Urban Outfitters, 5.2% at Free People and 3.7% at Anthropologie. Subscription segment net sales increased 42.6% primarily driven by a 40.3% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 9.1% driven by a 10.2% increase in Free People wholesale sales due to an increase in sales to specialty customers. For the year ended January 31, 2026, total Company net sales increased 11.1% to a record $6.17 billion. Total Retail segment net sales increased 7.9%, with comparable Retail segment net sales increasing 6.0%. The increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both digital channel sales and retail store sales. Comparable Retail segment net sales increased 7.3% at Urban Outfitters, 5.9% at Anthropologie and 4.8% at Free People. Subscription segment net sales increased 50.2% primarily driven by a 45.3% increase in average active subscribers in the current year versus the prior year period. Wholesale segment net sales increased 14.0% driven by a 15.2% increase in Free People wholesale sales due to an increase in sales to specialty customers. “We are pleased to report record sales and operating profits for the quarter, driven by strong results across all three segments – Retail, Subscription, and Wholesale,” said Richard A. Hayne, Chief Executive Officer. “Our Nuuly apparel rental business continues to enjoy exceptional momentum with double-digit subscriber and revenue growth,” finished Mr. Hayne.     Net sales by brand and segment for the three and twelve-month periods were as follows:   Three Months Ended     Twelve Months Ended     January 31,     January 31,     2026     2025     2026     2025   Net sales by brand                       Anthropologie $ 774,898     $ 743,030     $ 2,586,611     $ 2,426,438   Free People   451,023       410,618       1,618,421       1,460,295   Urban Outfitters   405,105       360,192       1,351,629       1,247,742   Nuuly   160,503       112,524       568,418       378,394   Menus & Venues   10,241       9,756       40,297       37,797   Total Company $ 1,801,770     $ 1,636,120     $ 6,165,376     $ 5,550,666                           Net sales by segment                       Retail Segment $ 1,566,443     $ 1,454,996     $ 5,282,676     $ 4,896,694   Subscription Segment   160,503       112,524       568,418       378,394   Wholesale Segment   74,824       68,600       314,282       275,578   Total Company $ 1,801,770     $ 1,636,120     $ 6,165,376     $ 5,550,666   For the three months ended January 31, 2026, the gross profit rate increased by 101 basis points compared to the three months ended January 31, 2025, and gross profit dollars increased 13.6% to a record $599.2 million from $527.7 million. For the year ended January 31, 2026, the gross profit rate increased by 126 basis points compared to the year ended January 31, 2025, and gross profit dollars increased 15.1% to a record $2.22 billion from $1.93 billion. The increase in gross profit rate for both periods was primarily due to improved Retail segment markdowns driven by lower markdowns at Urban Outfitters and Free People, a leverage in store occupancy costs due to the increase in comparable Retail segment net sales and leverage in delivery expense due to a reduction in packages per order, partially offset by deleverage in initial merchandise costs. The increase in gross profit dollars for both periods was due to higher net sales and the improved gross profit rate. Additionally, during the year ended January 31, 2026, the Company recorded store impairment charges of $2.0 million and during the year ended January 31, 2025, the Company recorded store impairment and lease abandonment charges of $4.6 million. As of January 31, 2026, total inventory increased by $79.8 million, or 12.8%, compared to total inventory as of January 31, 2025. Total Retail segment inventory increased 13.4% and comparable Retail segment inventory increased 5.3%. Wholesale segment inventory increased 8.5%. The increase in inventory for both segments was due to the increase in sales and timing of inventory receipts. For the three months ended January 31, 2026, selling, general and administrative expenses increased by $38.1 million, or 9.5%, compared to the three months ended January 31, 2025. Selling, general and administrative expenses leveraged 14 basis points as a percentage of net sales compared to the three months ended January 31, 2025. For the year ended January 31, 2026, selling, general and administrative expenses increased by $159.2 million, or 11.0%, compared to the year ended January 31, 2025. Selling, general and administrative expenses leveraged 2 basis points as a percentage of net sales compared to the year ended January 31, 2025. The leverage in selling, general and administrative expenses as a percentage of net sales for both periods was primarily related to a leverage in store payroll expenses due to the Retail segment stores net sales growth. The dollar growth in selling, general and administrative expenses for both periods was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth. During the three months and year ended January 31, 2026, the Company made a $46.0 million charitable contribution to a donor-advised fund, which is included in “Other (expense) income, net.” The Company’s effective tax rate for the three months ended January 31, 2026, was 21.9%, compared to 8.1% in the three months ended January 31, 2025. The Company's effective tax rate for the year ended January 31, 2026, was 22.1%, compared to 19.5% in the year ended January 31, 2025. The increase in the effective tax rate for the three months and year ended January 31, 2026, was primarily due to the non-recurrence of a significant tax reserve release recorded in the prior year. The adjusted effective tax rate for the three months ended January 31, 2026, was 22.9%, compared to 25.0% for the three months ended January 31, 2025. The Company’s adjusted effective tax rate for the year ended January 31, 2026, was 22.4%, compared to 24.0% in the year ended January 31, 2025.     Net income for the three months ended January 31, 2026, was $96.3 million and earnings per diluted share were $1.05. Adjusted net income for the three months ended January 31, 2026, was $130.5 million and adjusted earnings per diluted share were $1.43. Net income for the year ended January 31, 2026, was $464.9 million and earnings per diluted share were $5.06. Adjusted net income for the year ended January 31, 2026, was $499.2 million and adjusted earnings per diluted share were $5.44. 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 year ended January 31, 2026, the Company repurchased and subsequently retired 3.3 million shares for approximately $154 million. During the year ended January 31, 2025, the Company repurchased and subsequently retired 1.2 million shares for approximately $52 million. As of January 31, 2026, 14.6 million common shares were remaining under the program. Store data for the year ended January 31, 2026, was as follows:     January 31,                 January 31,       2025     Openings     Closings     2026   Anthropologie NA     222       13       1       234   Anthropologie EU     17       3       —       20   Total Anthropologie     239       16       1       254   Free People NA     156       15       4       167   FP Movement NA     63       25       —       88   Free People EU     11       3       1       13   Total Free People     230       43       5       268   Urban Outfitters NA     187       1       11       177   Urban Outfitters EU     68       9       1       76   Total Urban Outfitters     255       10       12       253   Menus & Venues     9       —       —       9   Total Company-Owned Stores     733       69       18       784   Franchisee-Owned Stores (1)     9       —       —       9   Total URBN     742       69       18       793   (1) Includes 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of Anthropologie stores in the United States, Canada and Europe, catalogs and websites; Free People stores (including FP Movement stores) in the United States, Canada and Europe, catalogs and websites; Urban Outfitters stores in the United States, Canada and Europe and websites; Menus & Venues restaurants; and Urban Outfitters franchisee-owned stores and Anthropologie franchisee-owned stores in the Middle East. Free People, FP Movement and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company’s Retail segment. Nuuly is primarily a women's apparel subscription rental service which offers a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces. A conference call will be held today to discuss fourth quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/w33kc9av/. As used in this document, unless otherwise defined, “Anthropologie” refers to the Company's Anthropologie, Terrain and Maeve brands and “Free People” refers to the Company's Free People and FP Movement brands. This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or     regulatory changes, any effects of war, including geopolitical instability, impacts of the conflict in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises, labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs, border adjustment taxes or increases in duties or quotas), the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein. ### (Tables follow)     URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Income (amounts in thousands, except share and per share data) (unaudited)     Three Months Ended     Twelve Months Ended     January 31,     January 31,     2026     2025     2026     2025   Net sales $ 1,801,770     $ 1,636,120     $ 6,165,376     $ 5,550,666   Cost of sales (excluding store impairment and lease abandonment charges)   1,202,569       1,108,439       3,945,634       3,619,395   Store impairment and lease abandonment charges   —       —       1,989       4,601             Gross profit   599,201       527,681       2,217,753       1,926,670   Selling, general and administrative expenses   440,500       402,367       1,612,119       1,452,906             Income from operations   158,701       125,314       605,634       473,764   Other (expense) income, net   (35,395 )     5,592       (8,737 )     26,408            Income before income taxes   123,306       130,906       596,897       500,172   Income tax expense   27,039       10,605       131,978       97,710             Net income $ 96,267     $ 120,301     $ 464,919     $ 402,462                           Net income per common share:                              Basic $ 1.07     $ 1.30     $ 5.15     $ 4.34          Diluted $ 1.05     $ 1.28     $ 5.06     $ 4.26                           Weighted-average common shares outstanding:                              Basic   89,691,297       92,279,466       90,191,801       92,684,127          Diluted   91,352,364       94,259,134       91,808,357       94,448,046                                                   AS A PERCENTAGE OF NET SALES                       Net sales   100.0 %     100.0 %     100.0 %     100.0 % Cost of sales (excluding store impairment and lease abandonment charges)   66.7 %     67.7 %     64.0 %     65.2 % Store impairment and lease abandonment charges   —       —       0.0 %     0.1 %          Gross profit   33.3 %     32.3 %     36.0 %     34.7 % Selling, general and administrative expenses   24.5 %     24.6 %     26.2 %     26.2 %           Income from operations   8.8 %     7.7 %     9.8 %     8.5 % Other (expense) income, net   (2.0 %)     0.3 %     (0.1 %)     0.5 %          Income before income taxes   6.8 %     8.0 %     9.7 %     9.0 % Income tax expense   1.5 %     0.6 %     2.2 %     1.7 %           Net income   5.3 %     7.4 %     7.5 %     7.3 %       URBAN OUTFITTERS, INC. Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited)     January 31,     January 31,     2026     2025   ASSETS           Current assets:               Cash and cash equivalents $ 369,206     $ 290,481       Marketable securities   326,724       319,949       Accounts receivable, net of allowance for doubtful accounts          of $1,209 and $1,384, respectively   95,668       74,014       Inventory   700,945       621,146       Prepaid expenses and other current assets   193,561       187,206               Total current assets   1,686,104       1,492,796   Property and equipment, net   1,466,236       1,331,077   Operating lease right-of-use assets   1,051,109       942,666   Marketable securities   461,858       410,208   Other assets   342,306       342,733              Total Assets $ 5,007,613     $ 4,519,480               LIABILITIES AND SHAREHOLDERS’ EQUITY           Current liabilities:               Accounts payable $ 327,903     $ 295,767       Current portion of operating lease liabilities   225,478       227,149       Accrued expenses, accrued compensation and other          current liabilities   564,713       552,763              Total current liabilities   1,118,094       1,075,679   Non-current portion of operating lease liabilities   1,000,088       871,209   Other non-current liabilities   74,144       101,088              Total Liabilities   2,192,326       2,047,976               Shareholders’ equity:               Preferred shares; $.0001 par value, 10,000,000 shares          authorized, none issued   —       —       Common shares; $.0001 par value, 200,000,000 shares          authorized, 89,698,222 and 92,281,748 shares issued and          outstanding, respectively 9     9       Additional paid-in-capital   19,912       15,067       Retained earnings   2,817,448       2,503,068       Accumulated other comprehensive loss   (22,082 )     (46,640 )            Total Shareholders’ Equity   2,815,287       2,471,504              Total Liabilities and Shareholders’ Equity $ 5,007,613     $ 4,519,480                   URBAN OUTFITTERS, INC. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited)       Twelve Months Ended       January 31,       2026     2025   Cash flows from operating activities:             Net income   $ 464,919     $ 402,462   Adjustments to reconcile net income to net cash provided by operating activities:             Depreciation and amortization     128,529       115,425   Non-cash lease expense     216,348       214,605   Provision (benefit) for deferred income taxes     12,896       (2,966 ) Share-based compensation expense     30,408       31,039   Amortization of tax credit investment     17,029       17,224   Store impairment and lease abandonment charges     1,989       4,601   Loss on disposition of property and equipment, net     555       1,641   Changes in assets and liabilities:             Receivables     (19,506 )     (7,319 ) Inventory     (72,755 )     (72,945 ) Prepaid expenses and other assets     (2,667 )     (17,471 ) Payables, accrued expenses and other liabilities     42,999       59,690   Operating lease liabilities     (245,554 )     (243,152 ) Net cash provided by operating activities     575,190       502,834   Cash flows from investing activities:             Cash paid for property and equipment     (260,168 )     (182,581 ) Cash paid for marketable securities     (565,365 )     (542,944 ) Sales and maturities of marketable securities     513,881       416,756   Net cash used in investing activities     (311,652 )     (308,769 ) Cash flows from financing activities:             Proceeds from the exercise of stock options     928       851   Share repurchases related to share repurchase program     (153,946 )     (52,262 ) Share repurchases related to taxes for share-based awards     (21,954 )     (15,402 ) Tax credit investment liability payments     (16,397 )     (10,301 ) Net cash used in financing activities     (191,369 )     (77,114 ) Effect of exchange rate changes on cash and cash equivalents     6,556       (4,791 ) Increase in cash and cash equivalents     78,725       112,160   Cash and cash equivalents at beginning of period     290,481       178,321   Cash and cash equivalents at end of period   $ 369,206     $ 290,481           Important Information Regarding Non-GAAP Financial Measures In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include a charitable contribution to a donor-advised fund and a release of income tax reserves. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures for fiscal 2026 and 2025 that exclude the impact of these non-core business items. We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.               URBAN OUTFITTERS, INC. Reconciliation of Non-GAAP Financial Measures (amounts in thousands, except per share data) (unaudited)                 Reconciliation of Total Company Adjusted Income Tax Expense and Adjusted Effective Tax Rate:                   Three Months Ended   January 31,   2026   2025   $'s       $'s                     Income before income taxes (GAAP) $ 123,306       $ 130,906     Adjustments:               Charitable contribution (a)   46,000         —     Adjusted income before income taxes (Non-GAAP) $ 169,306       $ 130,906                     Income tax expense (GAAP) $ 27,039       $ 10,605     Adjustments:               Provision for income taxes on adjustments (b)   11,750         —     Release of income tax reserves (c)   —         22,172     Adjusted income tax expense (Non-GAAP) $ 38,789       $ 32,777                     Effective income tax rate (GAAP)   21.9 %       8.1 %   Adjustments   1.0       16.9     Adjusted effective income tax rate (Non-GAAP)   22.9 %       25.0 %                     Twelve Months Ended   January 31,   2026   2025   $'s       $'s                     Income before income taxes (GAAP) $ 596,897       $ 500,172     Adjustments:               Charitable contribution (a)   46,000         —     Adjusted income before income taxes (Non-GAAP) $ 642,897       $ 500,172                     Income tax expense (GAAP) $ 131,978       $ 97,710     Adjustments:               Provision for income taxes on adjustments (b)   11,750         —     Release of income tax reserves (c)   —         22,172     Adjusted income tax expense (Non-GAAP) $ 143,728       $ 119,882                     Effective income tax rate (GAAP)   22.1 %       19.5 %   Adjustments 0.3         4.5     Adjusted effective income tax rate (Non-GAAP)   22.4 %       24.0 %         URBAN OUTFITTERS, INC.   Reconciliation of Non-GAAP Financial Measures   (amounts in thousands, except per share data)   (unaudited)                       Reconciliation of Total Company Adjusted Net Income and Adjusted Diluted EPS:                         Three Months Ended     January 31,     2026     2025     $'s   % of Net Sales     $'s   % of Net Sales                       Net income (GAAP) $ 96,267     5.3 %   $ 120,301     7.4 % Adjustments:                   Charitable contribution (a)   46,000           —       Provision for income taxes on adjustments (b)   (11,750 )         —       Release of income tax reserves (c)   —           (22,172 )     Adjusted net income (Non-GAAP) $ 130,517     7.2 %   $ 98,129     6.0 %                     Diluted EPS (GAAP) $ 1.05         $ 1.28       Adjustments, net of tax   0.38           (0.24 )     Adjusted diluted EPS (Non-GAAP) $ 1.43         $ 1.04                             Twelve Months Ended     January 31,     2026     2025     $'s   % of Net Sales     $'s   % of Net Sales                       Net income (GAAP) $ 464,919     7.5 %   $ 402,462     7.3 % Adjustments:                   Charitable contribution (a)   46,000           —       Provision for income taxes on adjustments (b)   (11,750 )         —       Release of income tax reserves (c)   —           (22,172 )     Adjusted net income (Non-GAAP) $ 499,169     8.1 %   $ 380,290     6.9 %                     Diluted EPS (GAAP) $ 5.06         $ 4.26       Adjustments, net of tax   0.38           (0.23 )     Adjusted diluted EPS (Non-GAAP) $ 5.44         $ 4.03                           (a) During the three months and year ended January 31, 2026, the Company made a charitable contribution to a donor-advised fund.                       (b) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustment.                       (c) During the three months and year ended January 31, 2025, the Company recorded a one-time tax benefit for the release of a portion of our income tax reserves as a result of a lapse of the statute of limitations for federal tax purposes.