For the eighth consecutive quarter of record sales, Urban Outfitters delivered. Revenue for the three months ended July 31, 2026, rose 10.4% to $1.66 billion, and Chief Executive Richard Hayne said in the company's release that adjusted profits had reached the highest level in company history.
The reported figures carry a significant one-time lift. The company received a refund of about $96 million for tariffs previously paid under trade emergency powers — a program the filing calls IEEPA — and booked the money through cost of sales. Strip it out and the underlying gross margin was essentially unchanged from a year ago. The streak is real; the headline profit margin is not a clean read on where the core business stands.
With or without the refund, the operational picture is broadly positive. Every retail brand posted comparable sales growth in the quarter, and overall comparable retail net sales rose 6.2%. The subscription segment — Nuuly, a rental service for women's clothing — was the standout, with net sales up 28.6%, driven by a 30.4% rise in average active subscribers compared with the same period a year earlier.
In the first half of fiscal 2027, the company spent roughly $300 million buying back its own stock.
Shares closed 9.46% higher at $82.95, on dollar volume of about $297 million.
Hayne called it the highest adjusted profit quarter in the company's history — and that figure already excludes the tariff refund entirely.