Urban Outfitters Inc. (URBN) reported a strong performance in its second quarter of fiscal 2027, with Retail segment revenues rising 8% year-over-year to $1.39 billion. Total company revenues for the quarter reached $1.66 billion, marking a 10.4% increase—both figures hitting record levels. Comparable Retail segment sales grew by 6.2%, driven by high demand across North America and Europe, with online sales seeing a high-single-digit increase.
Key brands also showed significant growth, with Free People Group leading with a 10% increase in comparable sales, while Urban Outfitters saw an 8.4% rise, supported by strong sales in denim and shoes. Adjusted gross profits climbed 10.6% to $625.9 million, although challenges remain, including higher markdowns and freight costs. Looking ahead, Urban Outfitters anticipates mid-single-digit comparable sales growth for the third quarter, reflecting positive demand trends for fall products.
Urban Outfitters’ stock has outperformed the market, gaining 23.4% over the past six months, compared to a 15.9% decline in the retail industry. The company currently holds a Zacks Rank of #3 (Hold) and has seen upward revisions in earnings estimates for fiscal years 2027 and 2028.
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