Urban Outfitters’ Rental Business Beats Its Sales Target

February 25, 2026 - 22:46

Urban Outfitters' foray into the clothing rental market is proving to be a significant success. The company's Nuuly service has not only beaten its internal sales targets but has also reported a substantial surge in subscriber numbers, signaling strong consumer adoption.

Launched as a direct competitor to services like Rent the Runway, Nuuly offers subscribers a monthly selection of garments from a vast inventory that includes the parent company's own brands, such as Anthropologie and Free People, alongside hundreds of other labels. This unique access to a diverse, curated wardrobe appears to be resonating with a customer base increasingly interested in variety and sustainable fashion alternatives without the commitment of permanent ownership.

The service's performance is a bright spot in the retail landscape, demonstrating a successful pivot towards the experiential and circular economies. Company executives highlighted that the subscriber growth has been robust, contributing positively to the overall financial picture. This expansion indicates a shifting model where access rivals ownership, particularly within the younger demographics that Urban Outfitters has traditionally catered to. The strong results are likely to fuel further investment and innovation within the Nuuly platform as it solidifies its position in the competitive apparel rental market.