Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $6.74B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.98
• Revenue Growth: 8.38%
• EPS Growth: 52.18%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Retail
• EPS (TTM): 1.16
• Shares Outstanding: 89,614,730
• 10 Day Avg. Volume: 3,614,486
• 30 Day Avg. Volume: 2,466,772
• PEG Ratio: 0.53
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.34
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.90
• Enterprise Value/Ebitda: 2.56
• 1Y Price Target: $70.50
• Price Target Upside: -6.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 81 Outperform
• Price Target: $85.00 ▲(12.94%Upside)

Urban Outfitters receives a high overall stock score due to its strong financial performance, robust earnings call insights, and positive corporate events. Technical analysis suggests bullish momentum, although the valuation is moderate. Attention to tariff impacts and leverage is advised.

Positive Factors

Financial Performance

URBN reported a strong earnings beat with a 38% higher EPS than expected, driven by positive same-store-sales growth and gross margin expansion.

Growth Opportunities

Nuuly sales increased by 60%, highlighting it as a good growth opportunity for the company.

Strategic Initiatives

The company's strategic initiatives, including the expansion of the FP Movement and growth in Nuuly, are expected to drive significant revenue and earnings growth.

Negative Factors

Profitability Concerns

Urban Outfitters is expected to remain unprofitable in the near term, despite opportunities for margin improvement.

Regional Performance

Urban Outfitters' positive performance was significantly driven by a 14% growth in Europe, despite a slight decline in North America.

Urban Outfitters Business Overview & Revenue Model

Company Description

Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nully. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's casual apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Bhldn stores, which offer heirloom quality wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations; and Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; restaurants; and women's apparel subscription rental service under the Nuuly brand name. The company serves its customers directly through retail stores, Websites, mobile applications, catalogs and customer contact centers, franchised or third-party operated stores, and digital businesses. As of January 31, 2022, it operated 261 Urban Outfitters, 238 Anthropologie Group, and 173 Free People stores in the United States, Canada, and Europe; and 10 restaurants, as well as two Urban Outfitters and one Anthropologie franchisee-owned stores. The company is also involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and home goods through department and specialty stores worldwide. The company was founded in 1970 and is based in Philadelphia, Pennsylvania.

How the Company Makes Money

Urban Outfitters generates revenue primarily through the sale of merchandise in its retail stores and online platforms. The company's revenue streams are diversified across its various brands, each targeting distinct consumer segments. Urban Outfitters, Anthropologie, and Free People are the primary contributors to its sales, each offering a mix of apparel, accessories, and lifestyle products. In addition to direct-to-consumer sales, URBN also earns money through its wholesale operations, particularly under the Free People brand, which supplies products to department stores and specialty retailers. The company's earnings are influenced by factors such as brand popularity, fashion trends, seasonal demand, and its ability to effectively manage inventory and supply chain operations. URBN's e-commerce presence is a significant revenue driver, benefiting from the increasing consumer shift towards online shopping.

Urban Outfitters Financial Statement Overview

Summary

Urban Outfitters presents a strong financial profile with consistent revenue growth, improved profitability, and solid cash flow generation. The company's balance sheet stability supports its operational performance, though attention to leverage and capital expenditures is advised.

Income Statement

Urban Outfitters has shown impressive revenue growth, with a revenue increase from $4.79 billion in 2023 to $5.55 billion in 2025. The gross profit margin improved significantly to 34.7% in 2025. Net profit margin also increased to 7.25% over the same period, indicating enhanced profitability. However, the EBIT and EBITDA margins remained relatively stable, reflecting consistent operational efficiency.

Balance Sheet

The company's balance sheet is strong with a steady equity ratio of approximately 54.7% in 2025, indicating solid financial stability. The debt-to-equity ratio has remained manageable, marginally improving as equity increased. Return on Equity (ROE) improved to 16.29%, showcasing effective use of shareholders' equity. The balance sheet indicates a healthy financial position, though slightly high leverage may pose potential risks.

Cash Flow

Urban Outfitters' cash flow statement shows robust free cash flow growth, rising from a negative $56.78 million in 2023 to a positive $502.83 million in 2025. The operating cash flow to net income ratio is sound at 1.25, indicating efficient cash generation relative to net income. The positive trend in free cash flow supports future growth opportunities, though fluctuations in capital expenditures need monitoring.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
5.55B	5.15B	4.80B	4.55B	3.45B
	Gross Profit
1.93B	1.73B	1.43B	1.49B	861.91M
	EBIT
473.76M	388.07M	226.62M	408.57M	3.97M
	EBITDA
629.44M	496.09M	514.28M	697.83M	307.78M
	Net Income Common Stockholders
402.46M	287.67M	159.70M	310.62M	1.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
610.43M	465.06M	382.64M	446.00M	570.33M
	Total Assets
4.52B	4.11B	3.68B	3.79B	3.55B
	Total Debt
1.10B	1.08B	1.12B	1.19B	1.33B
	Net Debt
807.88M	900.18M	916.11M	980.82M	933.08M
	Total Liabilities
2.05B	2.00B	1.89B	2.05B	2.07B
	Stockholders Equity
2.47B	2.11B	1.79B	1.75B	1.48B
Cash Flow		Free Cash Flow
320.25M	309.79M	-56.78M	96.89M	126.57M
	Operating Cash Flow
502.83M	509.41M	142.73M	359.32M	285.81M
	Investing Cash Flow
-308.77M	-521.65M	-32.01M	-487.66M	-101.90M
	Financing Cash Flow
-77.11M	-12.13M	-118.40M	-60.27M	-10.42M

Urban Outfitters Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For URBN, the sentiment is Positive. The current price of 75.26 is above the 20-day moving average (MA) of 58.95, above the 50-day MA of 53.43, and above the 200-day MA of 47.65, indicating a bullish trend. The MACD of 5.10 indicates Negative momentum. The RSI at 78.65 is Negative, neither overbought nor oversold. The STOCH value of 95.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for URBN.

Urban Outfitters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	81 Outperform	$6.74B	15.77	19.55%	―	8.38%	52.18%
BKE	79 Outperform	$2.22B	11.15	44.55%	3.40%	-1.08%	-8.20%
GAP	73 Outperform	$10.71B	12.94	28.81%	2.16%	1.32%	65.83%
AEO	71 Outperform	$1.85B	6.38	18.80%	4.67%	1.27%	96.32%
BOOT	68 Neutral	$4.99B	27.81	17.44%	―	14.64%	21.68%
ANF	65 Neutral	$3.49B	6.84	47.77%	―	15.60%	71.45%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%

Urban Outfitters Corporate Events

Urban Outfitters Reports Record Q1 Financial Results

On May 21, 2025, Urban Outfitters announced record financial results for the first quarter ending April 30, 2025, with net income reaching $108.3 million and earnings per diluted share at $1.16. The company reported a 10.7% increase in total net sales to $1.33 billion, driven by growth across all segments, including a significant 59.5% rise in subscription segment sales. The gross profit rate improved by 278 basis points, and the company repurchased 3.3 million shares during the quarter. These results highlight the effectiveness of Urban Outfitters’ strategy and the strength of its brands, positioning the company for continued success.

The most recent analyst rating on (URBN) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Urban Outfitters stock, see the URBN Stock Forecast page.