URBAN OUTFITTERS INC Revenue Disclosure

3. Revenue from Contracts with Customers

Contract receivables occur when the Company satisfies all of its performance obligations under a contract and recognizes revenue prior to billing or receiving consideration from a customer for which it has an unconditional right to payment. Contract receivables arise from credit card and other electronic payment transactions and sales to the Company’s Wholesale segment customers and franchisees. For the year ended January 31, 2026, the opening and closing balance of contract receivables, net of allowance for doubtful accounts, was $74,014 and $95,668, respectively. For the year ended January 31, 2025, the opening and closing balance of contract receivables, net of allowance for doubtful accounts, was $67,008 and $74,014, respectively. Contract receivables are included in “Accounts receivable, net of allowance for doubtful accounts” in the Consolidated Balance Sheets.

Contract liabilities represent unearned revenue and result from the Company receiving consideration in a contract with a customer for which it has not satisfied all of its performance obligations. The Company’s contract liabilities result from the issuance of gift cards, deferred subscription fee revenue, customer deposits and customer loyalty programs. Gift cards are expected to be redeemed within two years of issuance, with the majority of redemptions occurring in the first year. For the year ended January 31, 2026, the opening and closing balance of contract liabilities was $101,866 and $117,500, respectively. For the year ended January 31, 2025, the opening and closing balance of contract liabilities was $91,408 and $101,866, respectively. Contract liabilities are included in “Accrued expenses and other current liabilities” in the Consolidated Balance Sheets. During the year ended January 31, 2026, the Company recognized $61,490 of revenue that was included in the contract liability balance at the beginning of the period. During the year ended January 31, 2025, the Company recognized $48,584 of revenue that was included in the contract liability balance at the beginning of the period.

See Note 17, “Segment Reporting,” for additional information including net sales recorded by reportable segment and net sales from contracts with customers by merchandise category.