Urban Outfitters (URBN) reported strong financial performance at the Goldman Sachs Global Consumer and Retail Conference, driven by the collective strength of its portfolio. The company's market capitalization stands at $6.6 billion, with a P/E ratio of 12.2.
In the second quarter, the company saw total sales rise 10% to $1.7 billion, marking an 11% revenue growth over the last twelve months. Operating profit grew 11%, setting a new record for the most profitable operating profit quarter ever. Urban Outfitters has delivered eight consecutive quarters of record sales and operating profits.
Key segments of the company's portfolio performed well. Free People saw comparable sales up 10%, while Urban Outfitters Global Brand Comps increased by 8%. Anthropologie reported a 3% increase in comparable sales, maintaining low-teens operating profit rates. Wholesale revenue rose 19%, and Nuuly achieved a top-line growth of 29%, surpassing 500,000 subscribers and expected to generate more than $700 million in revenue this year. FP Movement, accounting for about 30% of FP Group sales, is expected to exceed $500 million in revenue this year.
The company provided guidance for Q3 gross margin improvement of 25 to 50 basis points, with a full-year gross margin guidance of 25 basis points improvement. Fuel surcharges are expected to pose a headwind of about 70 basis points per quarter.
Frank Conforti, Co-President and Chief Operating Officer, emphasized the strength of the collective as a key differentiator. Dave Hayne, Chief Technology Officer and President of Nuuly, highlighted the importance of discovery and personalization in the rental model.
The conference took place on Tuesday, September 15, 2026, with specific events and timelines mentioned, including Anthropologie's leadership under Tricia Smith and early promotional events for Anthropologie at the end of July.
