URBN

Urban Outfitters is executing exceptionally well across its portfolio of Anthropologie, Free People, FP Movement, Urban Outfitters and the fast-growing Nuuly subscription brand. FY2026 (ended January 31, 2026) revenue grew 11.1% to $6.17B, gross profit rose 15.1% to $2.22B (gross margin expanding to 36.0%), operating income jumped 27.8% to $606M (9.8% operating margin), and net income increased 15.5% to $465M with diluted EPS of $5.06 (+18.8%). This is the latest leg of a clear multi-year recovery — net income has climbed from $160M in FY2023 to $288M, $402M, and now $465M — driven by the omni-channel Retail model and the Subscription (Nuuly) and Wholesale segments.

The balance sheet is a standout. Stockholders' equity grew 13.9% to $2.82B against just $2.19B of total liabilities — a conservative 0.78x liabilities/equity — with cash up 27.1% to $369M and only $150M of long-term debt shown. The company generated $575M of operating cash flow (+14.4%) and is returning capital aggressively: buybacks nearly tripled to $154M and shares outstanding fell 7.6% to 85.6M, directly boosting per-share metrics. A 16.5% ROE on an unlevered balance sheet reflects genuinely high-quality earnings.