What Urban Outfitters, Inc. told the SEC could break it.

Its global apparel supply chain is exposed to disruption in the supply of fabrics or raw materials and to transportation capacity shortages and delays, including the impact of ongoing Middle East hostilities on shipments routed through the region (Red Sea), which can raise costs and delay merchandise.

“disruption in the supply of fabrics or raw materials, transportation capacity shortages and delays (including the impact of the ongoing hostilities in the Middle East on shipments traveling through the region)”

URBN imports much of its apparel merchandise and is directly exposed to the 2025 U.S. tariff regime that raised rates on a substantial number of imports plus reciprocal foreign tariffs; after the U.S. Supreme Court invalidated many IEEPA tariffs in February 2026 the administration imposed new incremental global tariffs, keeping sourcing costs uncertain.

“In 2025, the U.S. government enacted significant changes to its tariff regime that increased rates on a substantial number of imports. Certain foreign jurisdictions have responded with reciprocal tariffs which resulted in corresponding actions by the U.S. government.”