By Katherine Hamilton
Urban Outfitters posted double-digit sales growth in the first quarter with revenue growing at each of its main brands, an upbeat sign as other retailers said macroeconomic uncertainty was dampening demand.
The readout from the fashion conglomerate, which in addition to its namesake brand also owns Anthropologie and Free People chains, comes as competitors are posting mixed results over recent weeks. The broader retail industry is weighing how to respond to new tariffs and also watching how the trade war and market volatility weighs on consumer sentiment.
Urban Outfitters showed demand for its products holding up in recent months, with sales rising 11% in the first quarter on a 5% increase in same-stores sales. Profit improved across each brand as well, Chief Executive Richard Hayne said.
For the quarter ended April 30, Urban Outfitters posted a profit of $108.3 million, or $1.16 a share, compared with $61.8 million, or 65 cents a share, a year earlier. Analysts polled by FactSet expected a profit of $78.2 million, or 82 cents a share.
Revenue came in at $1.33 billion, topping the $1.29 billion expected by analysts.
Broken out by brand, same-store sales increased 7% at Anthropologie, 3% at Free People and 2% at the company's namesake brand Urban Outfitters.
The earnings come on the heels of other retailers warning of tough quarters ahead due to tariffs. TJX Cos. on Wednesday gave a full-year outlook that included the cost of tariffs and fell below Wall Street's expectations. Target reduced its sales outlook, also citing tariff uncertainty and falling consumer sentiment. American Eagle earlier this month withdrew its guidance due to macroeconomic uncertainty and said it was disappointed in its first quarter's preliminary results, though it didn't mention tariffs.
Urban Outfitters didn't mention tariffs in its earnings report, unlike many other retailers. Bank of America analysts cited the company as one of the retailers with the least exposure to tariffs on Chinese imports.
Shares rose 15% to $68.50 in post-market trading Wednesday, which would surpass the all-time high the company hit on Friday.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
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May 21, 2025 17:25 ET (21:25 GMT)
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