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Jennifer Braun Published
May 22, 2025
Philadelphia-based fashion and lifestyle group Urban Outfitters Inc. reported record first-quarter sales on Tuesday, but it was its foray into the rental subscription market that really had people talking.
In the middle of a hot sharing economy, the group announced the launch of an online subscription service, which will allow people to borrow six items to wear for a month before swapping them.
The womenswear service will be called Nuuly and will launch in the U.S. this summer.
The announcement comes alongside the company’s reporting of net income of $33 million and earnings per diluted share of $0.31 for the three months ended April 30, 2025. Net sales for the quarter increased 1 percent over the same period last year to a record $864 million.
Comparable retail segment net sales increased 1 percent, with strong double-digit growth in the digital channel, partially offset by negative retail store sales.
By brand, comparable retail segment net sales increased 2 percent at Free People, 1 percent at the Anthropologie Group and were flat at Urban Outfitters, while wholesale segment net sales increased 2 percent.
“We are pleased to announce record first quarter sales,” said CEO Richard A. Hayne. “Our sales growth was driven by our seventh straight quarter of positive retail segment ‘comps’ as well as continued growth in our wholesale segment.”
During the quarter, the company opened a total of four new retail locations including two Anthropologie Group stores and two Free People stores. It closed three retail locations including one Anthropologie Group store, one Free People store and one Food and Beverage restaurant.