Urban Outfitters (URBN)
NASDAQ:URBN
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Urban Outfitters
(NASDAQ:URBN)
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Rating:68Neutral
Price Target:
$72.00
▲(17.63% Upside)
Action:DowngradedDate:03/02/26
The score is driven mainly by improved fundamentals (strong revenue and margin recovery with healthier leverage) and a positive FY'27 outlook from management. Offsetting these are weak technicals (price below key moving averages with negative MACD) and some cash-flow volatility, while valuation appears reasonable on a 13.08 P/E.
Positive Factors
Diversified multi-brand, multi-channel portfolio
URBN’s portfolio spans distinct fashion and lifestyle brands plus Nuuly rental, sold via stores, e-commerce and wholesale. This structural diversification spreads revenue risk, supports cross-brand customer lifetime value, and stabilizes demand versus a single-brand or single-channel retailer.
Negative Factors
Free cash flow volatility
Inconsistent free cash flow driven by working-capital and reinvestment swings weakens predictability of internally funded growth or shareholder returns. Even with stronger operating cash in 2026, volatility raises execution risk for inventory management, store rollouts and Nuuly scale without incremental external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified multi-brand, multi-channel portfolio
URBN’s portfolio spans distinct fashion and lifestyle brands plus Nuuly rental, sold via stores, e-commerce and wholesale. This structural diversification spreads revenue risk, supports cross-brand customer lifetime value, and stabilizes demand versus a single-brand or single-channel retailer.
Read all positive factors
Urban Outfitters (URBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.49B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)13.7
Beta (1Y)1.10
Revenue Growth11.09%
EPS Growth51.51%
CountryUS
Employees11,310
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)1.43
Shares Outstanding89,678,940
10 Day Avg. Volume2,023,837
30 Day Avg. Volume1,915,499
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 Cap1.16
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda10.21
Forecast
1Y Price Target
$87.71Price Target Upside43.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.75
Revenue Forecast (FY)$6.69B
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,...
How the Company Makes Money
Urban Outfitters generates revenue through multiple channels, primarily retail sales from its physical stores and online platforms. The company operates over 200 retail locations across North America and Europe, where it sells its branded products...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone driven by record revenue, significant margin and earnings expansion, strong brand-level execution (notably Nuuly, FP Movement, Free People and Urban Europe), and confident top-line guidance for FY'27. Management acknowledged near-term headwinds — chiefly tariff-driven IMU pressure, planned SG&A investments that will outpace sales in the near term, weather-driven store softness in Q1 and some remaining recovery required in North America for Urban Outfitters — but positioned these as manageable and/or investable items. Given the magnitude of the operational wins, record results and constructive guidance, these positives outweigh the cited challenges.Positive Updates
Record Quarterly Revenue
Total revenue grew 10% in the fourth quarter to a record $1.8 billion, driven by broad-based strength across brands and channels.
Negative Updates
Tariff Headwinds
Tariffs negatively impacted margins: approximately 75 basis points drag on gross and operating profit rate in Q4 and ~35 basis points for the full year (net of mitigation). Ongoing Section 122 uncertainty may materially affect FY'27 planning.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenue grew 10% in the fourth quarter to a record $1.8 billion, driven by broad-based strength across brands and channels.
Read all positive updates
Company Guidance
Management guided FY‑27 to positive high‑single‑digit total company sales growth, driven by a mid‑single‑digit Retail segment comp, mid‑double‑digit Nuuly revenue growth and mid‑single‑digit wholesale growth; Q1 guidance is also positive high‑single‑digit sales with Retail comps split as high‑single‑digits at Urban Outfitters, mid‑single‑digits at Free People and low‑single‑digits at Anthropologie, Nuuly mid‑double‑digit growth and Wholesale mid‑teen revenue growth. They expect full‑year gross margin to improve ~25 basis points (with H2 IMU benefit), but Q1 gross margin to be down ~25–50 bps versus last year (noting Q1 FY‑26 had a ~$5M / ~36‑bp one‑time benefit), SG&A dollars to grow ahead of sales (with Q1 several points higher due to marketing and technology/agentic AI investments), an annual effective tax rate of ~22%, inventory growth at or below sales growth, capital expenditures of ~ $385M (≈40% retail store, 40% logistics, 20% technology/home office), ~57 new store openings and ~14 closures (net ~+43), and share repurchases planned at least to offset dilution; management noted tariff uncertainty (Section 122) could provide incremental IMU upside if resolved.Urban Outfitters Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.17B | 5.55B | 5.15B | 4.80B | 4.55B |
| Gross Profit | 2.22B | 1.93B | 1.73B | 1.43B | 1.49B |
| EBITDA | 725.43M | 621.67M | 491.76M | 324.93M | 511.41M |
| Net Income | 464.92M | 402.46M | 287.67M | 159.70M | 310.62M |
Balance Sheet | |||||
| Total Assets | 5.01B | 4.52B | 4.11B | 3.68B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 695.93M | 610.43M | 465.06M | 382.64M | 446.00M |
| Total Debt | 1.23B | 1.10B | 1.08B | 1.12B | 1.19B |
| Total Liabilities | 2.19B | 2.05B | 2.00B | 1.89B | 2.05B |
| Stockholders Equity | 2.82B | 2.47B | 2.11B | 1.79B | 1.75B |
Cash Flow | |||||
| Free Cash Flow | 445.13M | 320.25M | 309.79M | -56.78M | 96.89M |
| Operating Cash Flow | 575.19M | 502.83M | 509.41M | 142.73M | 359.32M |
| Investing Cash Flow | -311.65M | -308.77M | -521.65M | -32.01M | -487.66M |
| Financing Cash Flow | -191.37M | -77.11M | -12.13M | -118.40M | -60.27M |
Urban Outfitters Technical Analysis
Negative
61.21
Price Trends
67.46
Negative
70.10
Negative
70.99
Negative
Market Momentum
-1.78
Positive
36.85
Neutral
25.57
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 61.21 is below the 20-day moving average (MA) of 64.05, below the 50-day MA of 67.46, and below the 200-day MA of 70.99, indicating a bearish trend. The MACD of -1.78 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.52B | 11.34 | 45.18% | 6.82% | 4.67% | 3.46% | |
69 Neutral | $4.00B | 9.11 | 38.98% | ― | 7.57% | 1.75% | |
68 Neutral | $5.49B | 13.74 | 17.66% | ― | 11.09% | 51.51% | |
64 Neutral | $9.22B | 12.79 | 22.98% | 2.45% | 0.29% | 3.65% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.73B | 20.90 | 12.12% | 2.09% | -1.15% | -0.98% | |
54 Neutral | $3.42B | 28.27 | 22.70% | ― | 2.97% | 9.85% |
* Consumer Cyclical Sector Average
URBN
Urban Outfitters
61.21
8.81
16.81%
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16.71%
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24.74
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Urban Outfitters Corporate Events
Business Operations and StrategyFinancial Disclosures
Urban Outfitters Posts Record Quarterly and Annual Results
Positive
Feb 26, 2026
Urban Outfitters reported record results for the quarter and year ended January 31, 2026, with fourth-quarter net income of $96.3 million, or $1.05 per diluted share, and adjusted earnings of $1.43 per share. Quarterly net sales rose 10.1% to an a...
Business Operations and StrategyFinancial Disclosures
Urban Outfitters Reports Record Holiday Sales Growth
Positive
Jan 12, 2026
On January 12, 2026, Urban Outfitters reported record holiday sales, with total company net sales for the two months ended December 31, 2025 rising 9% year-on-year, driven by a 7% increase in Retail segment sales and a 5% gain in comparable Retail...
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.