Peter Smith
⬤ Urban Outfitters Inc. shares took a hit in premarket trading despite releasing solid holiday numbers. The company announced that sales for the two months ending December 31, 2025 climbed 9% compared to the previous year. Even with that growth, URBN stock was trading significantly lower before the market opened.
⬤ The holiday period showed retail comparable sales up 5%, with gains in both online and physical stores. Breaking it down by brand: Urban Outfitters saw 9% comparable sales growth, Free People posted a 5% increase, and Anthropologie added 3%. The real standout was FP Movement, which jumped 18% in comparable sales—showing that demand for active and lifestyle gear remains strong.
⬤ The company's subscription rental service also delivered impressive results. Nuuly revenue surged 43% year over year, powered by a 41% increase in average active subscribers. That growth shows Nuuly is becoming a bigger piece of the overall business. But none of that mattered to premarket traders—URBN was down more than 7%, dropping from around $81.56 to approximately $75.40.
⬤ The price action shows that solid sales numbers don't always translate to stock gains. Market expectations and investor positioning can override positive operational data in the short term. The sharp premarket drop reflects how sensitive retail stocks have become as investors wrestle with questions about consumer spending trends and future performance.
Peter Smith
