Urban Outfitters posted record fiscal second-quarter results, with net sales rising 11.3% year on year to $1.50 billion. Comparable sales in the retail segment advanced 5.6%, helped by mid-single-digit growth in both store and digital channels. Strength at the Free People and Anthropologie banners led the gains, posting comp increases of 6.7% and 5.7%, respectively, while the namesake brand grew 4.2%. Profitability also improved. Net income climbed to $143.9 million, lifting diluted earnings per share to $1.58. Gross margin expanded 113 basis points to 37.6%, supported by lower markdowns and occupancy leverage. Operating income margin reached 11.6%, up from 10.7% a year earlier. Growth was broad-based across segments. Subscription service Nuuly logged a 53.2% sales jump on a 48.1% increase in active subscribers, and wholesale revenue advanced 18.1% on demand from specialty retailers. Inventory levels were 15.1% higher than a year ago, which management attributed to planned early receipts for upcoming demand. The company continued returning cash to shareholders, repurchasing 3.3 million shares for roughly $152 million during the first half of the fiscal year. Management said all five brands achieved positive comparable sales across geographies and expressed confidence in sustaining momentum into the back half of fiscal 2026.