Urban Outfitters, Inc. (URBN): Business Model Canvas [Dec-2025 Updated]

You're looking at the engine room of a major retailer, and frankly, the numbers for URBN in fiscal 2025 tell a clear story: the multi-brand bet is paying off, hitting record total net sales of $5.55 billion. What really caught my eye, coming from my time at BlackRock, was how the circular model-specifically Nuuly-surged 60.4% in net sales, proving that lifestyle curation and modern services can coexist. I've mapped out the full nine-block Business Model Canvas below, showing exactly how they manage 768 stores alongside that complex rental operation, so you can see the levers driving this performance.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Key Partnerships

You're mapping out the strategic backbone of Urban Outfitters, Inc. (URBN) as of late 2025, and the key partnerships are where the operational muscle comes from. These aren't just names on a contract; they are enablers of scale and efficiency across a global footprint that included 777 retail locations worldwide as of October 31, 2025.

The company's annual revenue for the fiscal year ending January 31, 2025, was $5.551 billion, which requires a highly sophisticated and reliable network of partners to support. Here's a breakdown of the critical relationships driving that performance.

Logistics and Fulfillment Partners

The recent move to bolster European operations is a clear signal of focus. The August 2025 partnership with Bleckmann is central to this.

• Bleckmann: Appointed as the new third-party logistics (3PL) partner in August 2025, handling warehousing, fulfillment, and return services across Europe. Operations are now fully live in the Newton - Almelo (NL) facility.
• TGW Logistics Group: This partner is foundational to the automation strategy in North America. TGW designed and implemented the automation solution for the Kansas City, KS, Omni Channel Fulfillment Center, which is described as a state-of-the-art, highly automated showcase facility. The core of this system is TGW's FlashPick® system, which incorporates PickCenter Rovolution and PickCenter One workstations.

Core Technology and Planning Platforms

Urban Outfitters, Inc. (URBN) is consolidating its planning and execution systems onto fewer, more powerful platforms. This is about driving profitability by better aligning inventory with demand across all its banners.

Global Vendor Network

The sheer scale of sourcing is a key barrier to entry for competitors and a critical resource for Urban Outfitters, Inc. (URBN).

• Urban Outfitters, Inc. (URBN) purchased merchandise from approximately 4,000 vendors globally during fiscal year 2025.
• The sourcing base is intentionally diversified; the Top 10 vendors account for only 36% of total merchandise purchased.
• The company works with vendors worldwide, with primary sourcing and manufacturing concentration in countries including China, India, and Vietnam.
• URBN encourages vendors to partner closely with its designers and merchants, adhering to a Vendor Code of Conduct and Responsible Sourcing Policy.

These relationships, from the factory floor to the final mile in Europe, are what keep the product flowing to meet consumer demand.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Key Activities

You're looking at the core actions Urban Outfitters, Inc. (URBN) takes to run its business as of late 2025. These are the things they must do well to hit the numbers we see, like the record $1.53 billion in total company net sales for the third quarter ending October 31, 2025.

Multi-Brand Portfolio Management

Managing four distinct brands-Urban Outfitters, Anthropologie, Free People, and Nuuly-requires tailored execution across the portfolio. The success of this management is visible in the comparable sales figures for the three months ended October 31, 2025.

The total company operated 768 locations at the end of Q3 CY2025. Also, the Wholesale segment posted a 7.6% gain for the quarter.

Product Curation and Design

The ability to curate and design products that resonate quickly is reflected in margin performance, suggesting effective inventory management and reduced reliance on markdowns. For the nine months ended October 31, 2025, the gross profit rate increased by 135 basis points compared to the prior year period. This improvement was primarily due to better Retail segment markdowns. Lower markdowns at the Urban Outfitters brand specifically contributed to this trend.

The company's focus on product mix also drove strong results in the core retail business:

• Digital channel sales saw high single-digit positive growth.
• Retail store sales saw high single-digit positive growth.

Nuuly Logistics

The subscription service, Nuuly, demands a complex, vertically-integrated activity set for cleaning, repair, and fulfillment to maintain inventory quality and speed. The traction here is clear from the segment's financial metrics for the third quarter ending October 31, 2025.

Subscription segment net sales jumped 48.7% for the quarter. This was powered by a 42.2% increase in average active subscribers year-over-year. The segment's net sales reached $144.6 million in Q3 FY2026 context. Earlier in the year, for the fourth quarter of FY2025 (ending January 31, 2025), Nuuly ended the quarter with 300,000 average active subscribers. By the next report (Q1 FY2026, ending May 2025), active subscribers reached 380,000.

Digital Transformation

While explicit AI deployment numbers aren't public, the success in digital channels points to effective technology use in planning and execution. The Retail segment comparable net sales growth of 8.0% in Q3 CY2025 was supported by high single-digit growth in digital channel sales. The company repurchased and retired 3.3 million shares for approximately $152 million during the nine months ended October 31, 2025. This financial activity is often supported by sophisticated capital allocation models.

Experiential Retail

Creating in-store experiences is a key activity supporting the high single-digit growth in retail store sales for the quarter. The company's total inventory as of July 31, 2025, was up 15.1% year-over-year, totaling $696,199 thousand, to support increased sales and planned early receipts. The planned capital expenditure for fiscal year 2026 is approximately $270 million.

Finance: draft 13-week cash view by Friday.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Key Resources

When you look at the foundation of Urban Outfitters, Inc.'s business, the Key Resources are what really anchor its ability to capture youth culture and drive growth across its diverse portfolio. These aren't just assets; they're the engines of their strategy.

Brand Portfolio

You're looking at a collection of Seven distinct, globally recognized lifestyle brands. This portfolio structure is key because it allows the company to segment the market effectively, targeting different psychographics under one corporate umbrella. For instance, while the core Urban Outfitters brand focuses on its namesake demographic, others like Free People and Anthropologie capture different segments of the consumer base, ensuring broader market penetration. This diversification helps insulate overall performance when one banner faces a headwind.

Physical Retail Footprint

The physical presence remains a critical resource, even in a digital-first world. As of the data points suggesting late 2025/early 2026 performance, Urban Outfitters, Inc. maintains approximately 768 store locations globally. This network isn't static; the company actively manages it, closing underperforming doors while strategically opening new ones, often focusing on high-growth banners like FP Movement. The store acts as both a point of sale and a physical manifestation of the brand's lifestyle ethos.

Nuuly Fulfillment Centers

The subscription service, Nuuly, requires specialized logistics, and the investment here is significant. To support its rapid subscriber growth-which saw revenue surge nearly 49% in Q3 fiscal 2026-the company committed substantial capital to infrastructure. This includes a dedicated investment of $60 million for its second specialized facility in Raymore, Missouri, designed for fulfillment and laundry operations. This physical capacity is a direct enabler for tripling the active subscriber base, a stated goal.

Proprietary Technology

Behind the scenes, technology is the backbone that ties the multi-brand, multi-channel operation together. Urban Outfitters, Inc. relies on internal systems and key partnerships to maintain efficiency. They use Manhattan Associates' Supply Chain Process Platform and Warehouse Management solutions to optimize distribution processes, which has historically led to significant productivity gains, like a 60% rise in putaway efficiency in some areas. Furthermore, the deployment of o9 Solutions' AI-powered platform covers critical planning functions, including Merchandise Financial Planning, Demand Planning, Allocation, and Replenishment, helping the company quickly adapt inventory positioning to trends and demand drivers across all channels.

Gen Z Advisory Community

Perhaps the most intangible yet crucial resource is direct customer insight, especially from the core demographic. Urban Outfitters, Inc. actively guides its strategy using continuous feedback from its Gen Z advisory community, which numbers 10,000+ members. This community directly informs everything from product assortment curation in new store formats to marketing experiences, ensuring the brand remains culturally resonant and avoids feeling out of touch. It's a real-time feedback loop that helps maintain that authentic connection with youth culture.

Here is a quick summary mapping these core assets to their quantifiable metrics as of late 2025:

You can see the interplay here; the technology supports the physical footprint and the subscription service, while the advisory community feeds insights back into the brand strategy. It's definitely a complex machine.

The specific capabilities derived from these resources include:

• Optimized inventory placement using o9's Allocation and Replenishment capabilities.
• High-volume, small-order processing supported by Manhattan Warehouse Management.
• Localized merchandise mixes informed by UO Insiders community data.
• Capacity to triple Nuuly's active subscriber base via new fulfillment centers.
• Direct, continuous customer insight guiding brand evolution.

Finance: draft 13-week cash view by Friday.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Value Propositions

You're looking at how Urban Outfitters, Inc. keeps its diverse customer base engaged and spending across its portfolio of brands as of late 2025. The value proposition isn't one-size-fits-all; it's a collection of tailored offerings.

Lifestyle Merchandising: Creating an emotional bond through curated apparel, home goods, and environments.

This is about selling a feeling, not just a shirt. The numbers show this curation is working, especially at the core Urban Outfitters brand. For the third quarter of fiscal year 2026, the Urban Outfitters brand delivered a 12.5% comparable retail segment net sales increase. That's strong pull. The Anthropologie Group also showed its enduring lifestyle appeal with a 7.6% retail segment comp. The Free People Group followed with a 4.1% retail segment comp. Honestly, Anthropologie's consistency is remarkable; they hit their 19th consecutive quarter of positive comparable sales. The Urban Outfitters brand itself achieved a 13% global retail segment comp in that same third quarter.

• Urban Outfitters Brand Global Retail Segment Comp (Q3 FY26): 13%
• Anthropologie Group Retail Segment Comp (Q3 FY26): 7.6%
• Free People Group Retail Segment Comp (Q3 FY26): 4.1%

Circular Fashion Model: Nuuly offers clothing rental and resale, appealing to values-driven consumers.

The subscription service, Nuuly, is a major value driver now, showing serious scale. In the third quarter of fiscal year 2026, Nuuly's sales jumped 49% year-over-year, hitting $145 million. This growth came from a 42% increase in average active subscribers compared to the prior year period. To give you context on its scale, as of the Q1 FY2026 report in May 2025, Nuuly already had 380,000 active subscribers. It's not just growth; it's profitable growth, too. For the full fiscal year 2025, Nuuly generated $13 million in operating profit. The core rental price point is $98 per month, which gives customers access to over 400 brands.

Multi-Segment Coverage: Capturing distinct niches from young adults (UO) to affluent women (Anthropologie).

Urban Outfitters, Inc. is really a house of distinct businesses, and the latest results show broad-based strength. Total company net sales for the third quarter of fiscal year 2026 hit a record $1.53 billion. The total company net sales for the full fiscal year 2025 were $5.6 billion. You see the segmentation clearly when you look at the brand performance.

Experiential Discovery: Physical stores act as cultural hubs and media channels, not just distribution points.

The brick-and-mortar footprint remains a key part of the value delivery. As of the end of the third quarter of fiscal year 2026, Urban Outfitters, Inc. operated 768 locations globally. They are still investing in physical space, with plans for 69 new store openings across the portfolio. The focus is clearly on high-potential concepts; for instance, FP Movement is slated for 43 new stores in the coming year. New concepts are also proving their worth; the Mave store concept beat its sales plan by a high double-digit number in Q3 FY26, showing the power of in-house brand incubation.

• Total Global Locations (Q3 FY26 End): 768
• Planned New Store Openings (Total URBN): 69
• FP Movement Planned New Stores (FY26): 43

Fashion-Correct Product: Delivering on-trend, high-quality items to minimize markdowns.

When product is right, you sell it full-price, and that shows up directly in the gross margin. For the third quarter of fiscal year 2026, the gross profit rate improved by 31 basis points to reach 36.8%. This gain was hard-won, as tariffs acted as a 60 basis point drag on that same margin. So, the operational teams had to find nearly a full percentage point of gains just to net that small improvement, which they did through better inventory control and fewer markdowns, especially at Urban Outfitters and Free People. Back in Q4 of fiscal year 2025, the gross margin had already expanded by 300 basis points to 32.3%.

The gross profit dollars for Q3 FY26 hit a record $563 million, up 13% from the prior year. That's the real measure of product acceptance.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Customer Relationships

You're looking at how Urban Outfitters, Inc. keeps its customers engaged, especially with the growth of Nuuly. It's all about making the relationship sticky, blending digital convenience with physical touchpoints.

Subscription-Based

The Nuuly service is the core of the recurring revenue play here. It's a high-touch model because it includes the logistics of shipping and cleaning, which is a major part of the value proposition for the subscriber. The financial numbers show this model is scaling rapidly.

For the third quarter of fiscal year 2026, the subscription segment sales jumped 49% to $145 million. This growth was powered by a 42% increase in average active subscribers versus the prior year quarter. Looking back at the second quarter of fiscal 2026, Nuuly revenue was $138.9 million, a 53% increase year-over-year, driven by a 48% increase in average active subscribers. The service has shown incredible momentum, with subscribers growing by 52.9% in Q1 fiscal year 2025. As of late 2025, Nuuly has about 380,000 active subscribers. The company has a target of $1 billion in sales for Nuuly. For the full fiscal year ending January 31, 2025, Nuuly recorded an operating profit of $13 million. The service is projected to hit $500 million in sales for 2025.

Here's a quick look at the subscription segment's recent financial scale:

Community-Driven

While specific numbers on the Gen Z advisory board aren't public, the focus on this demographic is clear, especially as the core Urban Outfitters brand has worked to reconnect. The company acknowledged losing focus on Gen Z, which led to a 9% decline in the Urban Outfitters North America retail segment sales in Q2 fiscal year 2025. The recovery plan involves rebranding and expanding product offerings to better engage this group. The success of Nuuly itself is tied to appealing to younger consumers who value variety and sustainability.

The broader digital strategy is also community-focused, showing success in bringing in new shoppers:

• Digital transformation resulted in 17% new customer growth in Q2.
• Increased marketing spend fueled sales and customer growth across all brands in Q2.
• The Urban Outfitters brand achieved a 13% global retail segment comp in Q3 FY26.

Omnichannel Convenience

Urban Outfitters, Inc. made a significant move to blend its physical stores with the digital rental service by allowing Nuuly returns at all U.S. retail locations starting November 14, 2025. This was an expansion of a previous test that ran at 25 stores, especially in college areas. This convenience is a direct relationship builder, aiming for faster processing and instant updates for the customer.

To drive adoption of this new process, an incentive was put in place for early users. Subscribers using the drop-off function through December 24, 2025, receive a 15% discount code for an Urban Outfitters purchase, redeemable through December 31, 2025. This strategy is designed to drive foot traffic into the stores, as one analyst noted it's "one way to get more people in stores". Nuuly's scale in the rental market is also a key relationship factor; it has more than double the active subscribers of its next-largest U.S. competitor, Rent the Runway, which reported 146,765 average active subscribers in Q2.

Experiential Marketing

The in-store return program itself functions as an experiential touchpoint, blending digital ease with in-person discovery, which is uniquely developed for Gen Z. The President of Urban Outfitters stated that stores are "spaces for discovery, connection, and convenience". While specific event attendance numbers aren't available, the focus on physical locations as connection hubs is evident through this integration. Furthermore, the Urban Outfitters brand is focusing on enhancing selling environments as part of its strategy.

Digital Personalization

The use of data to optimize product mix and marketing is implied by the strong digital performance and the focus on customer growth. The company's digital transformation is paying dividends in customer acquisition. The Urban Outfitters brand is planning to reduce promotions as part of its strategy, suggesting a move toward more targeted, personalized value rather than broad discounting. This aligns with using data to ensure the right product is available at the right time, which is the goal of AI-powered planning.

The overall financial health supports continued investment in these digital and experiential relationship tools:

• Total company net sales for Fiscal Year 2025 were $5.55 billion.
• Record net income for Fiscal Year 2025 was $402.5 million.
• Gross profit margin improved by 113 basis points to 37.6% in Q2.

Finance: draft 13-week cash view by Friday.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Channels

You're looking at how Urban Outfitters, Inc. gets its product to the customer right now, late in fiscal 2025. It's a mix of physical presence and digital reach, with a clear focus on growth in newer areas like rentals.

Specialty Retail Stores: Physical locations remain key traffic drivers. As of the end of the third quarter of fiscal 2025, Urban Outfitters, Inc. operated exactly 768 physical locations globally. For the nine months ended October 31, 2025, comparable Retail segment net sales growth was driven by mid single-digit positive growth in retail store sales. In the most recent quarter (three months ended October 31, 2025), both digital and in-store channels posted high single-digit positive gains.

Digital E-commerce: The websites and mobile apps across all brands are essential. For the nine months ended October 31, 2025, digital channel sales contributed to the mid single-digit positive growth seen in comparable Retail segment net sales. The North American Retail segment net sales represented approximately 14.3% of consolidated net sales for the full fiscal year ended January 31, 2025, while the European Retail segment accounted for about 7.9% of consolidated net sales for that same period.

The performance across the main segments for the three months ended October 31, 2025, shows the relative scale of these channels:

Nuuly Subscription Platform: This dedicated digital channel for clothing rental is a major growth engine. For the three months ended October 31, 2025, Subscription segment net sales jumped 48.7%, primarily fueled by a 42.2% increase in average active subscribers compared to the prior year quarter. Over the nine months ended October 31, 2025, subscription net sales grew even faster at 53.4%, supported by a 47.3% rise in average active subscribers. By May 2025, Nuuly had surpassed 380,000 active subscribers. The net sales for this segment for the nine months ended October 31, 2025, totaled $407,915 thousand.

Wholesale Segment: This channel primarily moves Free People and FP Movement product to specialty customers. For the three months ended October 31, 2025, Wholesale segment net sales grew by 7.6%. This was led by an 8.4% increase in Free People wholesale sales. For the nine months ended October 31, 2025, Wholesale segment net sales reached $239,458 thousand, marking a 7.6% increase.

Pop-up/Experiential Venues: While the prompt mentions specific activations, the closest reported segment is Menus & Venues. This smaller channel saw its net sales increase from $10.3 million in the third quarter of 2024 to $10.8 million in the third quarter of 2025. For the nine months ended October 31, 2025, Menus & Venues net sales were $30,056 thousand.

You should note the channel performance drivers:

• Urban Outfitters Brand: Comparable Retail segment net sales increased 12.5% in Q3 2025.
• Free People Brand: Comparable Retail segment net sales increased 4.1% in Q3 2025.
• Anthropologie Brand: Comparable Retail segment net sales increased 7.6% in Q3 2025.
• Inventory Support: Total Retail segment inventory increased by 6.3% as of October 31, 2025, to support increased sales.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Customer Segments

You're looking at the distinct groups of people Urban Outfitters, Inc. (URBN) serves across its portfolio of brands as of late 2025. The company's strength lies in tailoring its value proposition to these specific, yet sometimes overlapping, segments.

Young Adults (Gen Z): Core Urban Outfitters demographic, seeking trendy, self-expressive apparel.

This core group drives the main Urban Outfitters brand. The brand showed significant recent strength, posting a 13% global retail segment comparable sales increase for the third quarter ended October 31, 2025. To be fair, this was a notable rebound, especially considering the brand saw an 8.7% decrease in comparable retail segment net sales for the full fiscal year ended January 31, 2025. The brand achieved a low single-digit operating profit margin globally in that same third quarter of fiscal 2026. This segment is highly engaged digitally, with high single-digit positive growth in digital channel sales contributing to comparable sales increases in earlier periods.

Affluent, Mature Women: Anthropologie's target for unique clothing and home furnishings.

The Anthropologie Group continues to serve a more established, affluent customer base, prioritizing unique aesthetics in both apparel and home goods. This segment demonstrates consistent performance; for the three months ended October 31, 2025, comparable Retail segment net sales increased 7.6%. This marked the 19th consecutive quarter of positive comparable sales for Anthropologie. Own-brand penetration within this segment reached a historical high, increasing over 100 basis points in the third quarter of fiscal 2026.

Bohemian/Wellness-Focused Women: Free People's customer base, valuing comfort and versatility.

Free People Group, which includes FP Movement, targets a customer valuing a bohemian, wellness-oriented lifestyle. For the quarter ending October 31, 2025, the Free People retail segment comparable sales grew 4.1%. The FP Movement activewear line is a significant growth engine, delivering total growth of 18% in that same period, supported by a 4% Retail segment comp and a 29% Wholesale segment sales increase. The Wholesale segment, largely driven by Free People, grew 7.6% overall for the quarter.

Values-Driven Style Rotators: Nuuly subscribers who prioritize variety, sustainability, and content creation.

The Subscription segment, anchored by Nuuly, captures customers seeking variety and a more circular approach to fashion. This is a major growth catalyst for Urban Outfitters, Inc. For the three months ended October 31, 2025, Subscription segment net sales surged 48.7%, fueled by a 42.2% increase in average active subscribers year-over-year. Nuuly sales hit $145 million in that third quarter. By May 2025, the service had surpassed 380,000 active subscribers, and in Q1 FY2026, the customer base grew by 53% year-over-year. This recurring revenue stream added 3.5 percentage points to the entire company's sales growth in Q3 FY26.

Here's a quick look at the recent comparable sales performance across the core retail brands for the three months ended October 31, 2025:

Also, consider the growth drivers for the Subscription segment:

• Subscription Segment Net Sales Increase (Q3 FY26): 48.7%
• Average Active Subscriber Increase (Q3 FY26): 42.2%
• Nuuly Net Sales (Q3 FY26): $145 million

Finance: draft 13-week cash view by Friday.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Urban Outfitters, Inc.'s operations as of late 2025. Understanding these costs is key to seeing where the margin pressure points are, especially with the current trade environment.

Cost of Goods Sold (COGS) remains the single largest cost component for Urban Outfitters, Inc. For the full fiscal year ended January 31, 2025, the Cost of Sales, which excludes store impairment and lease abandonment charges, totaled $3.619 billion. This figure represents the direct costs associated with the merchandise sold across all brands.

Selling, General, and Administrative (SG&A) expenses saw an increase in the third quarter of fiscal 2026. For the three months ended October 31, 2025, SG&A expenses increased by 13.7% compared to the prior year period. This dollar growth was primarily linked to increased marketing expenses supporting customer growth and higher store payroll expenses tied to net sales growth. For the full year ended January 31, 2025, total SG&A expenses were $402.367 million.

Logistics and Fulfillment costs are seeing significant capital allocation, particularly to support the growth of the Nuuly subscription segment. Urban Outfitters, Inc. announced a $60 million investment over a five-year period to build out its Nuuly fulfillment and laundry facility in Raymore, Missouri, which is its second U.S. fulfillment center. Furthermore, the company disclosed a $52.5 million investment for upgrades, including adding sortation technology, to this Missouri center. For fiscal year 2026 capital expenditures, approximately 25% is allocated to logistics capacity investments, which includes the Nuuly rental fulfillment center.

Store Occupancy Costs are a major fixed cost within the Cost of Sales structure. The leverage on these costs is a direct benefit of strong top-line performance. For instance, in the third quarter of fiscal 2026, the improvement in the gross profit rate was partly attributed to leverage in store occupancy costs driven by the increase in comparable Retail segment net sales.

Merchandise Costs are currently being pressured by external factors. Elevated tariffs have forced the company to adjust expectations for margin impact. While the company previously guided for a minimal negative impact of approximately 20 basis points to gross margins in the second half of the year (based on Q1 commentary), by the second quarter of fiscal 2026, the expectation for tariffs to reduce gross margins in the last six months of the year was revised upward to 75 basis points. This pressure on initial merchandise costs partially offset gross profit rate improvements for the nine months ended October 31, 2025.

Here are the key financial figures related to the cost structure as of the latest reported periods:

The company is actively managing these costs through several levers:

• Negotiating better terms with vendors.
• Changing the country of origin where possible.
• Adjusting shipping modes, such as shifting from air to ocean freight.
• Strategically adjusting pricing to protect opening price points.

Finance: draft 13-week cash view by Friday.

Urban Outfitters, Inc. (URBN) - Canvas Business Model: Revenue Streams

Retail Segment Sales: Revenue from physical stores and e-commerce, the largest stream. For the year ended January 31, 2025, Total Retail segment net sales increased by 4.7%.

Subscription Revenue: Monthly fees from Nuuly, which saw a 60.4% net sales surge in FY2025. This growth was primarily driven by a 51.3% increase in average active subscribers in the current year versus the prior year period.

Total Net Sales: Reached a record $5.55 billion for the full fiscal year 2025. This represented a 7.7% increase year-over-year.

Wholesale Segment Sales: Primarily Free People apparel sold to third-party retailers. The Wholesale segment net sales increased 15.5% for the year ended January 31, 2025.

Rental and Resale: Nuuly generates revenue from subscriptions and the eventual sale of used rental garments. Nuuly achieved its first full year of profitability in FY2025, recording $13 million in operating profit for the year.

Here's the quick math on the segment growth for the full fiscal year 2025:

The Retail segment performance was uneven across the brands:

• Free People comparable Retail segment net sales increased 8.9%.
• Anthropologie comparable Retail segment net sales increased 7.7%.
• Urban Outfitters comparable Retail segment net sales decreased 8.7%.

To be fair, the subscription segment's growth is significant, but the retail segment still makes up the vast majority of the total revenue base. If onboarding takes 14+ days, churn risk rises, though the 51.3% subscriber growth suggests strong demand.

Finance: draft 13-week cash view by Friday.