Urban Outfitters hits all-time high on record Q1 results as shoppers flock to its banner brands

Urban Outfitters popped nearly 21%, hitting a fresh all-time high Thursday after the trendy retailer reported blockbuster Q1 earnings. Earnings per share came in at $1.16, handily beating FactSet estimates of $0.86. Revenue climbed 10% to a quarterly record of $1.3 billion, topping Wall Street’s $1.29 billion forecast.

Much of the strength came from Urban’s cult-favorite apparel and lifestyle brands Anthropologie and Free People. Anthropologie alone accounted for over 40% of total revenue for the quarter. Urban also credited stronger marketing campaigns for driving traffic. Meanwhile, clothing rental business Nuuly saw revenue surge 60% as average active subscribers jumped 53%.

“Our success was driven by positive sales growth and improved profitability across all brands and segments,” CEO Richard Hayne said. “We believe these results demonstrate the strength of our brands and the effectiveness of our strategy.”

Wall Street’s warming up, too: Morgan Stanley bumped its price target to $77 from $62, keeping an “overweight” rating, saying the retailer is better equipped than its peers to weather downturns, with a clear runway for revenue and margin growth through 2026. 

Urban also said it’s well diversified on the tariff front, with no single country making up more than 25% of production and China accounting for less than 5%. On the earnings call, Urban’s COO said the company plans to “gently and sparingly” raise prices and only in spots where it thinks shoppers are less likely to flinch.

The results are a sharp 180 from rival American Eagle, which tumbled nearly 14% earlier this month after posting disappointing Q1 prelims and yanking its full-year outlook. Today’s rally puts Urban’s stock into positive territory on the year and up over 50% over the past 12 months.