Urban Outfitters‘ clothing rental service company, Nuuly, beat its 2025 sales target, allowing it to help Urban Outfitters’ overall growth, writes Jennifer Williams for The Wall Street Journal.
This growth is driving more shoppers to the retailer’s other brands, including Anthropologie and Free People.
Nuuly’s annual net sales reach more than $568 million for the year that ended Jan. 31, 2026. Executives set a $500 million target last February.
Meanwhile, Nuuly grew its base of average active monthly subscribers 40 percent from last year, to 420,000 subscribers. Its profit also increased from $21 million to $35 million.
The clothing rental service company accounts for roughly 10 percent of Urban Outfitters’ overall revenue.
“It’s kind of moved on from being a startup at this point,” David Hayne, chief technology officer and president of Nuuly, said of Urban Outfitters’ rental service. “The half a billion dollar threshold that we’ve just crossed is kind of emblematic of that now being a real contribution to [Urban Outfitters].”
While the apparel-rental market has seen many companies grapple with high costs, Nuuly saves money by buying about half of its apparel at cost from the Urban Outfitters brand.
Read more about how Nuuly has been able to bring success to the Urban Outfitters brand in The Wall Street Journal.
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