Urban Outfitters (URBN)
NASDAQ:URBN
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Urban Outfitters
(NASDAQ:URBN)
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Rating:76Outperform
Price Target:
$82.00
▲(10.54% Upside)
Action:Reiterated
Date:06/06/26
URBN scores well primarily on improved financial performance (meaningful margin and profit expansion, solid free cash flow, and lower leverage) and supportive earnings-call outlook driven by Nuuly and Wholesale growth. Technicals are positive but not high-momentum, and valuation is favorable at ~13.5x earnings. The main constraints are modest recent revenue growth, near-term margin pressure from tariffs/fuel surcharges, and quarter-to-quarter noise from a one-time tariff refund.
Positive Factors
Margin Expansion and Profitability
Sustained gross- and net-margin expansion reflects improved merchandising and expense control, producing higher operating leverage. Higher margins drive durable cash flow, bolster resilience to cost shocks, and provide capacity to fund capex, share repurchases and strategic investments over the next 2–6 months.
Negative Factors
Tariff and Freight Cost Exposure
Ongoing tariff unpredictability and sustained fuel-related surcharges create durable margin pressure and forecasting uncertainty. Persistent inbound cost volatility forces either higher prices, lower margins, or margin mix shifts and may limit the benefit of operational gains across multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion and Profitability
Sustained gross- and net-margin expansion reflects improved merchandising and expense control, producing higher operating leverage. Higher margins drive durable cash flow, bolster resilience to cost shocks, and provide capacity to fund capex, share repurchases and strategic investments over the next 2–6 months.
Read all positive factors
Urban Outfitters Key Performance Indicators (KPIs)
Any
Revenue by Brand
Shows how much each brand under Urban Outfitters contributes to total sales, highlighting which brands are driving growth and which might need strategic adjustments.
Shows how much each brand under Urban Outfitters contributes to total sales, highlighting which brands are driving growth and which might need strategic adjustments.
Data provided by:
The Fly
The FlyUrban Outfitters (URBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.54B
Dividend YieldN/A
Average Volume (3M)1.36M
Price to Earnings (P/E)14.2
Beta (1Y)1.08
Revenue Growth11.23%
EPS Growth8.96%
CountryUS
Employees11,310
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)5.29
Shares Outstanding85,635,086
10 Day Avg. Volume1,179,686
30 Day Avg. Volume1,357,677
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)2.27
Price to Sales (P/S)1.04
P/FCF Ratio14.36
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda9.61
Forecast
1Y Price Target
$90.00Price Target Upside21.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)6.12
Revenue Forecast (FY)$6.70B
Urban Outfitters Business Overview & Revenue Model
Company Description
Urban Outfitters, Inc. operates as a diversified lifestyle retail and wholesale enterprise, focusing on a broad range of consumer products. Its operations are structured into three primary segments: Retail, Wholesale, and the Nuuly subscription re...
How the Company Makes Money
URBN makes money primarily by selling merchandise and related services through multiple brand-led channels. The company’s core revenue stream is direct-to-consumer retail sales (online and in stores) of apparel and accessories (the largest categor...
Urban Outfitters Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call showcased strong top-line growth, record profitability, and broad-based momentum across key brands (notably Free People, FP Movement, Urban Outfitters, Nuuly and Wholesale), supported by active capital allocation and strategic investments in AI and logistics. However, near-term margin pressures from fuel surcharges and tariff uncertainty, plus elevated SG&A to fund growth, introduce risks and some volatility to near-term margins. On balance, the operational wins and clearer pathways to scale (Nuuly subscriber growth, wholesale strength, international expansion, and AI investments) materially outweigh the headwinds described.Positive Updates
Record Quarterly Sales and EPS
Net sales grew 11% year-over-year to $1.5 billion in Q1, and diluted EPS increased 12% to $1.30, marking the seventh consecutive quarter of record sales and profits for URBN.
Negative Updates
Tariff Uncertainty and IMU Headwinds
The tariff environment is volatile: prior IEEPA tariffs (up to ~50% in some sourcing countries) were ruled illegal, Section 122 (10%) was imposed and also ruled illegal but must be paid; management is planning conservatively for a 15% blended tariff in H2, creating uncertainty and potential additional cost volatility.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Sales and EPS
Net sales grew 11% year-over-year to $1.5 billion in Q1, and diluted EPS increased 12% to $1.30, marking the seventh consecutive quarter of record sales and profits for URBN.
Read all positive updates
Company Guidance
Management guided Q2 total-company sales to grow in the high single-digits, with Retail comps mid-single-digits (Urban Outfitters and FP Group expected high-single-digit comps, Anthropologie low- to mid-single-digits), Nuuly revenue growth mid- to high-20s and Wholesale mid-teens; they expect Q2 gross profit margin to be flat to down roughly 25 basis points versus last year (reflecting Section 122 tariffs at 10% through July and assumed ~15% blended tariffs in H2) and current oil surcharges to be about a 70 bp unfavorable impact per quarter, and plan to record roughly $100 million of IEEPA tariff refunds as a one‑time Q2 benefit. For full-year fiscal 2027 they target positive high-single-digit total sales growth, mid-single-digit Retail comps, mid-20s Nuuly growth, high-single-digit Wholesale growth, ~25 bp year-over-year gross margin improvement (with H2 IMU benefit), SG&A roughly in line with sales, an effective tax rate of ~22.5%, inventory growth at or below sales, capex of ≈$475 million (≈35% retail, 50% logistics, 15% tech/home office), and ~54 store openings vs ~19 closures (including 21 FP Movement, 12 Free People, 13 Anthropologie and 8 Urban Outfitters).Urban Outfitters Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
76
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.32B | 6.17B | 5.55B | 5.15B | 4.80B | 4.55B |
| Gross Profit | 2.27B | 2.22B | 1.93B | 1.73B | 1.43B | 1.49B |
| EBITDA | 739.93M | 725.43M | 621.67M | 491.76M | 324.93M | 511.41M |
| Net Income | 472.28M | 464.92M | 402.46M | 287.67M | 159.70M | 310.62M |
Balance Sheet | ||||||
| Total Assets | 4.76B | 5.01B | 4.52B | 4.11B | 3.68B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 413.34M | 695.93M | 610.43M | 465.06M | 382.64M | 446.00M |
| Total Debt | 1.20B | 1.23B | 1.10B | 1.08B | 1.12B | 1.19B |
| Total Liabilities | 2.15B | 2.19B | 2.05B | 2.00B | 1.89B | 2.05B |
| Stockholders Equity | 2.61B | 2.82B | 2.47B | 2.11B | 1.79B | 1.75B |
Cash Flow | ||||||
| Free Cash Flow | 280.50M | 445.13M | 320.25M | 309.79M | -56.78M | 96.89M |
| Operating Cash Flow | 557.64M | 575.19M | 502.83M | 509.41M | 142.73M | 359.32M |
| Investing Cash Flow | -108.32M | -311.65M | -308.77M | -521.65M | -32.01M | -487.66M |
| Financing Cash Flow | -340.39M | -191.37M | -77.11M | -12.13M | -118.40M | -60.27M |
Urban Outfitters Technical Analysis
Positive
74.18
Price Trends
71.75
Positive
69.25
Positive
70.27
Positive
Market Momentum
1.30
Negative
57.68
Neutral
45.94
Neutral
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 74.18 is above the 20-day moving average (MA) of 74.01, above the 50-day MA of 71.75, and above the 200-day MA of 70.27, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for URBN.
Urban Outfitters Risk Analysis
Urban Outfitters disclosed 25 risk factors in its most recent earnings report. Urban Outfitters reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Urban Outfitters Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.54B | 14.16 | 17.64% | ― | 11.23% | 8.96% | |
72 Outperform | $3.88B | 7.95 | 36.89% | ― | 5.13% | 0.95% | |
68 Neutral | $2.33B | 10.33 | 47.36% | 6.82% | 7.10% | 12.26% | |
67 Neutral | $7.61B | 8.07 | 26.47% | 2.45% | 1.58% | 11.13% | |
63 Neutral | $2.98B | 10.66 | 17.24% | 2.09% | 6.22% | 65.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
URBN
Urban Outfitters
76.42
9.53
14.25%
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GAP
Gap Inc
21.15
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1.54%
Urban Outfitters Corporate Events
Executive/Board ChangesShareholder Meetings
Urban Outfitters Shareholders Reaffirm Board, Auditor and Pay
Positive
Jun 5, 2026
On June 3, 2026, Urban Outfitters shareholders elected all ten director nominees to serve until the 2027 annual meeting, reaffirming the company’s existing board leadership and governance structure. Investors also ratified Deloitte Touche L...
Regulatory Filings and Compliance
Urban Outfitters Updates Filing on Material Financial Agreement
Neutral
May 26, 2026
Urban Outfitters disclosed a technical filing update in which information previously described under the entry into a material definitive agreement was formally incorporated by reference into another reporting item. This procedural step clarified ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Urban Outfitters Posts Record First-Quarter Sales and Earnings
Positive
May 21, 2026
Urban Outfitters reported record first-quarter results on May 20, 2026, with net income reaching $115.7 million, or $1.30 per diluted share, for the three months ended April 30, 2026, as total net sales climbed 11.4% to an all-time high of $1.48 b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.