Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $5.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.05
• Revenue Growth: 9.63%
• EPS Growth: 56.06%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 1.58
• Shares Outstanding: 89,697,914
• 10 Day Avg. Volume: 1,935,172
• 30 Day Avg. Volume: 1,700,097
• PEG Ratio: 0.32
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 16.04
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 11.30
• 1Y Price Target: $83.44
• Price Target Upside: 30.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $69.00 ▲(7.98% Upside)

Urban Outfitters' strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The company's robust growth across brands and strategic initiatives to mitigate challenges contribute positively. However, technical analysis indicates bearish momentum, which slightly offsets the overall score. The valuation is favorable, with a low P/E ratio suggesting potential undervaluation.

Positive Factors

Revenue Growth

The company's strong revenue growth, marked by record-breaking sales, indicates effective market strategies and expanding consumer demand, supporting long-term business sustainability.

Brand Performance

Nuuly's exceptional growth highlights the brand's strong market position and potential for continued expansion, contributing positively to Urban Outfitters' overall portfolio.

Profitability Margins

Improved profitability margins reflect efficient cost management and operational effectiveness, enhancing the company's financial stability and future growth prospects.

Negative Factors

Tariff Challenges

Tariff challenges could pressure margins, necessitating strategic adjustments to maintain profitability, potentially impacting long-term financial performance.

SG&A Deleveraging

Rising SG&A expenses indicate higher operational costs, which could affect profitability if not managed effectively, posing a risk to sustained financial health.

Increased Marketing Spend

While aimed at boosting sales, increased marketing spend can strain margins if not yielding proportional revenue growth, impacting long-term cost efficiency.

Urban Outfitters Business Overview & Revenue Model

Company Description

Urban Outfitters, Inc. (URBN) is a lifestyle retail corporation headquartered in Philadelphia, Pennsylvania, known for its unique and eclectic assortment of clothing, accessories, and home decor. The company operates several brands, including Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN, targeting a diverse demographic that values individuality and creativity. With a focus on providing a curated shopping experience, URBN offers a mix of private label and third-party products that resonate with young adults and the millennial market.

How the Company Makes Money

Urban Outfitters primarily generates revenue through the sale of apparel, accessories, and home goods via its retail stores and e-commerce platforms. Its revenue model is multifaceted, with key revenue streams including direct sales from its various brand stores, online sales, and wholesale distribution to third-party retailers. The company also benefits from its unique product offerings and seasonal collections, which encourage repeat purchases. Urban Outfitters leverages strategic partnerships with vendors and designers to enhance its product assortment, while its vertical integration allows for better control over its supply chain, contributing to profit margins. Additionally, the company invests in marketing and brand collaborations to attract its target demographic, driving both foot traffic in stores and online engagement.

Urban Outfitters Financial Statement Overview

Summary

Urban Outfitters exhibits a strong financial position with consistent revenue growth, solid profitability margins, and efficient cash flow management. The balance sheet reflects a balanced approach to leverage, supporting financial stability. Overall, the company is well-positioned for continued growth and profitability in the apparel retail industry.

Income Statement

Urban Outfitters has shown strong revenue growth with a 2.69% increase in TTM, supported by a solid gross profit margin of 35.34%. The net profit margin is healthy at 7.91%, indicating efficient cost management. EBIT and EBITDA margins are also robust at 9.86% and 11.92%, respectively, reflecting operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.47 indicates a moderate level of leverage, which is manageable. Return on equity stands at 18.91%, showcasing effective utilization of shareholder funds. The equity ratio is stable, suggesting a balanced capital structure. The balance sheet reflects financial stability with a prudent approach to leverage.

Cash Flow

Urban Outfitters has demonstrated impressive free cash flow growth of 74.8% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.46, and the free cash flow to net income ratio is 0.61, both reflecting healthy cash flow management. The cash flow statement highlights strong liquidity and efficient cash utilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.83B	5.55B	5.15B	4.80B	4.55B	3.45B
Gross Profit	2.08B	1.93B	1.73B	1.43B	1.49B	861.91M
EBITDA	656.86M	621.67M	491.76M	324.93M	511.41M	110.69M
Net Income	475.42M	402.46M	287.67M	159.70M	310.62M	1.24M
Balance Sheet
Total Assets	4.71B	4.52B	4.11B	3.68B	3.79B	3.55B
Cash, Cash Equivalents and Short-Term Investments	622.84M	610.43M	465.06M	382.64M	446.00M	570.33M
Total Debt	1.18B	1.10B	1.08B	1.12B	1.19B	1.33B
Total Liabilities	2.13B	2.05B	2.00B	1.89B	2.05B	2.07B
Stockholders Equity	2.58B	2.47B	2.11B	1.79B	1.75B	1.48B
Cash Flow
Free Cash Flow	506.34M	320.25M	309.79M	-56.78M	96.89M	126.57M
Operating Cash Flow	590.07M	502.83M	509.41M	142.73M	359.32M	285.81M
Investing Cash Flow	-279.61M	-308.77M	-521.65M	-32.01M	-487.66M	-101.90M
Financing Cash Flow	-188.60M	-77.11M	-12.13M	-118.40M	-60.27M	-10.42M

Urban Outfitters Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For URBN, the sentiment is Negative. The current price of 63.9 is below the 20-day moving average (MA) of 66.20, below the 50-day MA of 69.08, and below the 200-day MA of 64.09, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for URBN.

Urban Outfitters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOOT	77 Outperform	$5.69B	27.62	18.74%	―	17.82%	34.88%
BKE	76 Outperform	$2.93B	14.36	43.13%	6.80%	1.62%	-2.57%
URBN	74 Outperform	$5.73B	12.51	19.72%	―	9.63%	56.06%
ANF	73 Outperform	$3.37B	6.77	43.30%	―	9.34%	10.61%
GAP	69 Neutral	$8.70B	10.08	28.07%	2.75%	-0.05%	15.17%
AEO	69 Neutral	$2.90B	16.46	12.17%	2.92%	-2.73%	-16.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Urban Outfitters Corporate Events

Urban Outfitters Shines in Latest Earnings Call

Urban Outfitters, Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong financial performance and growth across its brands. While the company faces challenges like increased tariffs and SG&A deleveraging, the overall outlook remains optimistic due to strategic initiatives aimed at overcoming these hurdles.

Urban Outfitters Reports Record Q2 Financial Results

On August 27, 2025, Urban Outfitters announced record financial results for the second quarter ending July 31, 2025, with net income reaching $143.9 million and total company net sales increasing by 11.3% to $1.50 billion. The company experienced growth across all segments, with notable increases in subscription and wholesale sales, reflecting the strength of its brands and effective strategy.

The most recent analyst rating on (URBN) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Urban Outfitters stock, see the URBN Stock Forecast page.

Urban Outfitters Achieves Record Q2 Sales and Income

Urban Outfitters, Inc. is a lifestyle products and services company operating a diverse portfolio of global consumer brands, including Anthropologie, Free People, and Urban Outfitters, in the retail sector.