1. Nature of Business

Urban Outfitters, Inc. (the “Company” or “Urban Outfitters”), which was founded in 1970, was incorporated in the Commonwealth of Pennsylvania in 1976. The principal business activities of the Company are the operation of retail, subscription and wholesale businesses selling and renting to customers through various channels including retail locations, websites and mobile applications. As of January 31, 2026 and 2025, the Company operated 784 and 733 stores, respectively. Stores located in North America totaled 675 as of January 31, 2026 and 637 as of January 31, 2025. Operations in Europe included 109 stores as of January 31, 2026 and 96 stores as of January 31, 2025. The Company's Subscription segment consists of the Nuuly brand, which is primarily a monthly women's apparel subscription rental service. The Company’s Wholesale segment sells and distributes apparel to department and specialty stores worldwide, third-party digital businesses and to the Company’s Retail segment.

Macroeconomic Environment and Other Recent Developments

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were not authorized by the statute. The ruling did not establish a refund process, and uncertainty remains regarding how and when any amounts may be recovered pending further guidance. The Company is evaluating the ruling and potential actions available to the Company. Because the process, timing and amount of any recovery are uncertain, the Company is unable to estimate the financial effects, if any, at this time.