v3.26.1
Segment Reporting
 12 Months Ended
Jan. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

17. Segment Reporting

The Company offers lifestyle-oriented general merchandise and products and services through a portfolio of global consumer brands. The Company operates three reportable segments—“Retail,” “Subscription” and “Wholesale.”

The Company’s Retail segment includes Anthropologie (which includes the Anthropologie, Terrain and Maeve brands), Free People (which includes the Free People and FP Movement brands), Urban Outfitters and Menus & Venues. As of January 31, 2026, there were 254 Anthropologie stores, 180 Free People stores, 88 FP Movement stores, 253 Urban Outfitters stores, 9 Menus & Venues locations, 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores. Each of Anthropologie, Free People and Urban Outfitters, including their Company-owned and franchisee-owned store and digital channels, and Menus & Venues locations, are considered an operating segment. Net sales from the Retail segment accounted for approximately 85.7%, 88.2% and 90.8% of total consolidated net sales for fiscal 2026, 2025 and 2024, respectively.

The Company has aggregated its brands into the Retail segment based upon their shared management, customer base and economic characteristics. Reporting in this format provides management with the financial information necessary to evaluate the success of the segments and the overall business. The Company’s Retail segment omni-channel strategy enhances its customers’ brand experience by providing a seamless approach to the customer shopping experience. All available Company-owned Retail segment shopping channels are closely integrated, including retail locations, websites, mobile applications and customer contact centers. The Company’s investments in areas such as marketing campaigns and technology advancements are designed to generate demand for the Retail segment omni-channel and not the separate store or digital channels. The Company manages and analyzes its performance based on a single Retail segment omni-channel rather than separate channels and believes that the Retail segment omni-channel results present the most meaningful and appropriate measure of our performance.

The Company's Subscription segment includes the Nuuly brand which offers customers a more sustainable way to explore fashion primarily through a monthly women’s apparel subscription rental service. For a monthly fee, Nuuly subscribers can rent product from a wide selection of the Company’s own brands, third-party brands and one-of-a-kind vintage pieces via a custom-built, digital platform. Subscribers select their products each month, wear them as often as they like and then swap into new products the following month. Subscribers are also able to purchase rental product in their possession that was delivered as part of the customer's monthly subscription rental order or through the Nuuly website or mobile application, which will ship along with their next monthly subscription rental order. Net sales from the Subscription segment accounted for approximately 9.2%, 6.8%, and 4.6% of total consolidated net sales for fiscal 2026, 2025 and 2024, respectively.

The Company's Wholesale segment includes the Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, third-party digital businesses and the Company's Retail segment. The Wholesale segment primarily designs, develops and markets women’s contemporary apparel, intimates, FP Movement activewear and shoes under the Free People and FP Movement brands and the BDG and “iets frans” apparel collections under the Urban Outfitters brand. Net sales from the

Wholesale segment accounted for approximately 5.1%, 5.0% and 4.6% of total consolidated net sales for fiscal 2026, 2025 and 2024, respectively.

The Company's chief operating decision maker is the chief executive officer ("CEO"). The CEO regularly reviews net sales, gross profit and income from operations (excluding intercompany charges) when evaluating the performance of each segment and considers actual-to-budget variances for both profit measures when assessing segment performance and making decisions about the allocation of operating and capital resources to each segment. The CEO uses net sales, gross profit and income from operations when evaluating each segment during the budget and forecasting processes. The Company accounts for intersegment sales and transfers as if the sales and transfers were made to third parties making similar volume purchases. General corporate expenses include expenses incurred and directed by the corporate office that are not allocated to segments. The principal identifiable assets for the Retail and Wholesale segments are inventory and property and equipment. The principal identifiable assets for the Subscription segment are rental product and property and equipment.

Other assets are comprised primarily of general corporate assets, which principally consist of cash and cash equivalents, marketable securities, deferred taxes and prepaid expenses, and are typically not allocated to the Company’s segments.

The accounting policies of the reportable segments are the same as the policies described in Note 2, “Summary of Significant Accounting Policies.” All of the Company’s segments are highly diversified. No one customer constitutes more than 10% of the Company’s total consolidated net sales. A summary of the information about the Company’s operations by segment is as follows:

Fiscal Year Ended January 31, 2026:

 

Retail Operations

 

 

Subscription Operations

 

 

Wholesale Operations

 

 

Total Company

 

Net sales(1)

 

$

5,282,676

 

 

$

568,418

 

 

$

314,282

 

 

$

6,165,376

 

Cost of sales (excluding store impairment)(2)

 

 

3,313,849

 

 

 

416,363

 

 

 

215,422

 

 

 

3,945,634

 

Store impairment

 

 

1,989

 

 

 

—

 

 

 

—

 

 

 

1,989

 

Segment gross profit

 

 

1,966,838

 

 

 

152,055

 

 

 

98,860

 

 

 

2,217,753

 

Segment selling, general and administrative expenses

 

 

1,388,748

 

 

 

117,118

 

 

 

37,041

 

 

 

1,542,907

 

Segment income from operations

 

$

578,090

 

 

$

34,937

 

 

$

61,819

 

 

$

674,846

 

Less general corporate expenses

 

 

 

 

 

 

 

 

 

 

 

69,212

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

605,634

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

41,710

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(4,916

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

(45,531

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

596,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended January 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

Net sales(1)

 

$

4,896,694

 

 

$

378,394

 

 

$

275,578

 

 

$

5,550,666

 

Cost of sales (excluding store impairment and lease abandonment charges)(2)

 

 

3,152,805

 

 

 

280,666

 

 

 

185,924

 

 

 

3,619,395

 

Store impairment and lease abandonment charges

 

 

4,601

 

 

 

—

 

 

 

—

 

 

 

4,601

 

Segment gross profit

 

 

1,739,288

 

 

 

97,728

 

 

 

89,654

 

 

 

1,926,670

 

Segment selling, general and administrative expenses

 

 

1,264,058

 

 

 

84,425

 

 

 

34,705

 

 

 

1,383,188

 

Segment income from operations

 

$

475,230

 

 

$

13,303

 

 

$

54,949

 

 

$

543,482

 

Less general corporate expenses

 

 

 

 

 

 

 

 

 

 

 

69,718

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

473,764

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

37,064

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(6,069

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

(4,587

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

500,172

 

 

Fiscal Year Ended January 31, 2024:

 

Retail Operations

 

 

Subscription Operations

 

 

Wholesale Operations

 

 

Total Company

 

Net sales(1)

 

$

4,678,698

 

 

$

235,859

 

 

$

238,680

 

 

$

5,153,237

 

Cost of sales (excluding store impairment and lease abandonment charges)(2)

 

 

3,061,487

 

 

 

187,891

 

 

 

176,579

 

 

 

3,425,957

 

Store impairment and lease abandonment charges

 

 

11,875

 

 

 

—

 

 

 

—

 

 

 

11,875

 

Segment gross profit

 

 

1,605,336

 

 

 

47,968

 

 

 

62,101

 

 

 

1,715,405

 

Segment selling, general and administrative expenses

 

 

1,183,324

 

 

 

58,648

 

 

 

30,704

 

 

 

1,272,676

 

Asset impairment

 

 

—

 

 

 

6,404

 

 

 

—

 

 

 

6,404

 

Segment income (loss) from operations

 

$

422,012

 

 

$

(17,084

)

 

$

31,397

 

 

$

436,325

 

Less general corporate expenses

 

 

 

 

 

 

 

 

 

 

 

66,530

 

Income from operations

 

 

 

 

 

 

 

 

 

 

$

369,795

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

23,631

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(7,662

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

(4,157

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

381,607

 
(1)
Eliminated from Wholesale segment net sales were intercompany sales of $10,259, $11,463 and $15,934 for fiscal 2026, 2025 and 2024, respectively.
(2)
Eliminated from Wholesale segment cost of sales were intercompany charges of $10,756, $11,589 and $15,612 for fiscal 2026, 2025 and 2024, respectively.

 

 

Fiscal Year Ended January 31,

 

 

2026

 

 

2025

 

 

2024

 

Depreciation expense for property and equipment

 

 

 

 

 

 

 

 

 

Retail operations

 

$

118,833

 

 

$

110,095

 

 

$

99,780

 

Subscription operations

 

 

13,568

 

 

 

12,754

 

 

 

6,716

 

Wholesale operations

 

 

378

 

 

 

348

 

 

 

329

 

Total depreciation expense for property and equipment

 

$

132,779

 

 

$

123,197

 

 

$

106,825

 

Cash paid for property and equipment

 

 

 

 

 

 

 

 

 

Retail operations

 

$

205,279

 

 

$

139,902

 

 

$

131,254

 

Subscription operations

 

 

54,557

 

 

 

40,925

 

 

 

66,964

 

Wholesale operations

 

 

332

 

 

 

1,754

 

 

 

1,407

 

Total cash paid for property and equipment

 

$

260,168

 

 

$

182,581

 

 

$

199,625

 

 

 

 

January 31,

 

 

 

2026

 

 

2025

 

Inventory

 

 

 

 

 

 

Retail operations

 

$

630,836

 

 

$

556,522

 

Wholesale operations

 

 

70,109

 

 

 

64,624

 

Total inventory

 

$

700,945

 

 

$

621,146

 

Rental product, net(1)

 

 

 

 

 

 

Subscription operations

 

$

246,413

 

 

$

216,126

 

Property and equipment, net

 

 

 

 

 

 

Retail operations

 

$

1,291,541

 

 

$

1,197,157

 

Subscription operations

 

 

171,704

 

 

 

130,715

 

Wholesale operations

 

 

2,991

 

 

 

3,205

 

Total property and equipment, net

 

$

1,466,236

 

 

$

1,331,077

 
(1)
Rental product, net is included in "Other assets" in the Consolidated Balance Sheets.

 

The following tables summarize net sales and percentage of net sales from contracts with customers by merchandise category and by segment:

 

 

 

Fiscal Year Ended January 31,

 

 

2026

 

 

2025

 

 

2024

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

$

3,482,560

 

 

 

66

%

 

$

3,239,947

 

 

 

66

%

 

$

3,079,496

 

 

 

66

%

Home

 

 

799,232

 

 

 

15

%

 

 

762,129

 

 

 

16

%

 

 

763,713

 

 

 

16

%

Accessories

 

 

735,691

 

 

 

14

%

 

 

662,107

 

 

 

13

%

 

 

603,495

 

 

 

13

%

Other

 

 

265,193

 

 

 

5

%

 

 

232,511

 

 

 

5

%

 

 

231,994

 

 

 

5

%

Retail operations

 

 

5,282,676

 

 

 

100

%

 

 

4,896,694

 

 

 

100

%

 

 

4,678,698

 

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription operations

 

 

568,418

 

 

 

 

 

 

378,394

 

 

 

 

 

 

235,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel

 

 

294,401

 

 

 

94

%

 

 

259,302

 

 

 

94

%

 

 

219,231

 

 

 

92

%

Accessories

 

 

18,758

 

 

 

6

%

 

 

14,727

 

 

 

5

%

 

 

17,671

 

 

 

7

%

Other

 

 

1,123

 

 

 

0

%

 

 

1,549

 

 

 

1

%

 

 

1,778

 

 

 

1

%

Wholesale operations(1)

 

 

314,282

 

 

 

100

%

 

 

275,578

 

 

 

100

%

 

 

238,680

 

 

 

100

%

Total net sales

 

$

6,165,376

 

 

 

 

 

$

5,550,666

 

 

 

 

 

$

5,153,237

 

 

 

 

(1) Net of intersegment elimination.

The Apparel category includes intimates and activewear. The Home category includes home furnishings, electronics, gifts and decorative items. The Accessories category includes footwear, jewelry and handbags. The Other category includes beauty and shipping and handling revenue.

The Company has foreign operations primarily in Europe and Canada. Revenues and long-lived assets, based upon the Company’s domestic and foreign operations, are as follows:

 

 

Fiscal Year Ended January 31,

 

 

2026

 

 

2025

 

 

2024

 

Net Sales

 

 

 

 

 

 

 

 

 

Domestic operations

 

$

5,380,595

 

 

$

4,866,286

 

 

$

4,506,805

 

Foreign operations

 

 

784,781

 

 

 

684,380

 

 

 

646,432

 

Total net sales

 

$

6,165,376

 

 

$

5,550,666

 

 

$

5,153,237

 

 

 

 

January 31,

 

 

 

2026

 

 

2025

 

Property and equipment, net

 

 

 

 

 

 

Domestic operations

 

$

1,303,937

 

 

$

1,188,769

 

Foreign operations

 

 

162,299

 

 

 

142,308

 

Total property and equipment, net

 

$

1,466,236

 

 

$

1,331,077