Urban Outfitters’ Strong Performance Driven by European Growth and Brand Success

Bank of America Securities analyst Lorraine Hutchinson reiterated a Buy rating on Urban Outfitters (URBN – Research Report) today and set a price target of $80.00.

Lorraine Hutchinson’s rating is based on several positive developments at Urban Outfitters. The company reported strong first-quarter earnings, with all its brands showing growth. Notably, Anthropologie and Free People are performing exceptionally well in the apparel market, and Nuuly presents a promising growth opportunity. Urban Outfitters’ earnings per share significantly exceeded expectations, driven by better sales and gross margins across its brands.
Urban Outfitters has shown positive growth, particularly in Europe, where sales increased by 14%, despite a decline in North America. The brand’s success in Europe is attributed to a well-received product assortment. Additionally, Anthropologie and Free People continue to see strong sales growth, with Anthropologie benefiting from increased store and online traffic and Free People expanding through new store openings. The company has also managed to mitigate the impact of tariffs on its gross margins, further supporting the positive outlook.

In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $77.00 price target.