Urban Outfitters (NASDAQ: URBN | URBN Price Prediction) posted a strong finish to fiscal year 2026, with record fourth-quarter revenue and operating profits that exceeded analyst expectations, sending shares higher in after-hours trading.
Urban Outfitters reported Q4 revenue of $1.80 billion, narrowly topping the FactSet consensus of $1.79 billion and rising 10.1% year over year. Diluted EPS came in at $1.05, though that trailed the consensus estimate of $1.24. Adjusted net income grew 33% to $130.5 million. For the full fiscal year, revenue reached $6.17 billion, up 11.1% and a company record.
The standout story was the namesake Urban Outfitters brand, which delivered +9.6% comparable store sales after years of underperformance. The retail segment overall posted +5.5% comparable sales, a record, with all brands contributing positively. The Nuuly subscription business also outperformed, reaching 420,000 subscribers, up 40% year over year, generating $568 million in annual sales and $35 million in profit.
Shares rose roughly 3% in late trading after the report, though the stock remains down 13% year to date. The analyst consensus sits at “Hold” with an average price target of $84.00, compared to current levels near $65.46. Management flagged tariff exposure and SG&A trajectory as headwinds. The next earnings report is expected around March 3.