Urban Outfitters (NASDAQ: URBN) reported record net sales of $1.66 billion for the second quarter. Sales increased 10.4% year-over-year. This slightly surpassed analyst expectations. The company achieved its eighth consecutive quarter of record sales. Adjusted earnings per share (EPS) reached $1.72. This narrowly missed the consensus estimate of $1.73.
Comparable retail segment sales increased 6.2%. Strong digital channel performance drove this growth. The Free People Group grew 10.0%. Urban Outfitters increased 8.4%. Anthropologie was up 3.0%. The Nuuly clothing rental subscription segment posted strong results. Sales climbed 28.6%.
Increased markdowns at Anthropologie caused the slight earnings miss. One-time tariff refunds significantly boosted GAAP net income to $240.7 million. The company's stock fell in after-hours trading following the announcement.