J.Crew vs Tapestry

Nuuly Drives Urban Outfitters' Record Q2 2026 Revenue

Urban Outfitters Inc. reported record second-quarter net sales of $1.7 billion, a 10.4% year-over-year increase. The growth was significantly fueled by its clothing rental subscription business, Nuuly, which posted a 28.6% net sales increase to $179 million and added over 113,000 active subscribers. To sustain this momentum, Nuuly is enhancing its digital customer experience by upgrading its recommendation personalization engine—drawing UX inspiration from streaming giants like Netflix—and introducing a custom fit guidance engine. Additionally, Nuuly is expanding its brand assortment with upcoming launches from Nike and J.Crew, and has rolled out a Gen Z-targeted microdrama campaign for Fall 2026 while scaling its fulfillment infrastructure to support up to 1.2 million subscribers.

• Urban Outfitters Inc. achieved record Q2 net sales of $1.7 billion, up 10.4% year over year.
• Nuuly rental subscription net sales grew 28.6% to $179 million, adding 113,000 average active subscribers.
• Nuuly upgraded its personalization engine to offer smarter style and brand recommendations inspired by Netflix and Disney+.

Luxury retailers lean on outlets for growth

Luxury retailers including Tapestry-owned Coach and Ralph Lauren are investing in and elevating outlet stores to attract aspirational, value-conscious shoppers as demand for luxury softens. Consulting firm Bain reports the luxury market lost about 70 million customers since 2022, and a luxury-focused fund (USLUX) is down about 7% year to date per FactSet. Analysts from Citi, Bernstein and Wells Fargo say upgrading outlet assortments and mixing made-for-factory items with select full-price goods can broaden customer bases and support sales and share-price upside for companies such as Ralph Lauren, Tapestry and Capri Holdings (Michael Kors). Analysts cite rising full-price focus, improved outlet product quality, and easier customer acquisition via elevated outlet experiences.

• Companies such as Tapestry-owned Coach and Ralph Lauren have elevated their discount stores into higher-end destinations for aspirational shoppers.
• Bain reported the luxury market shed roughly 70 million customers since 2022, falling to about 330 million by the end of 2025.
• The U.S. Global Investors Funds Global Luxury Goods Fund (USLUX), which includes companies like LVMH, Ferrari, Hermes and Christian Dior, is down about 7% year to date, per FactSet.

The Power of Pride

Co-leads from Tapestry’s Prouder Together Employee Business Resource Group...

Tapestry appoints Matt Madrigal to Board of Directors

Matt Madrigal was elected to our Board of directors in April 2026. Mr. Madrigal joined Pinterest as Chief Technology Officer in 2024 and is currently Chief Product and Technology Officer. He leads the company’s product and platform direction, overseeing product and engineering teams.