Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $6.34B
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.00
• Revenue Growth: 9.63%
• EPS Growth: 56.06%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Retail
• EPS (TTM): 1.58
• Shares Outstanding: 89,642,150
• 10 Day Avg. Volume: 2,965,523
• 30 Day Avg. Volume: 2,061,466
• 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: 1.17
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 11.30
• 1Y Price Target: $84.10
• Price Target Upside: 16.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $83.00 ▲(15.13% Upside)

Urban Outfitters' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust growth across brands and strategic initiatives to address challenges underscore its resilience. Technical analysis suggests caution in the short term, but the valuation remains reasonable, supporting a positive outlook.

Positive Factors

Earnings

The company reported better than expected earnings per share, driven by positive sales across all brands.

Management Strategy

Efforts to mitigate tariff impacts include vendor negotiations, sourcing adjustments, and strategic price increases, suggesting proactive management.

Sales Performance

Urban Outfitters reported strong sales growth across all its brands, with UO, Anthropologie, and Free People showing positive sales figures, and Nuuly sales growing significantly.

Negative Factors

Market Sentiment

The risk/reward is less attractive than when the stock was initially upgraded, considering its significant year-to-date run.

Profitability

Urban Outfitters is expected to remain unprofitable in the fiscal year 2026, despite positive growth indicators.

Tariffs

Tariff pressure is expected to be highest in the fourth quarter, though management is planning strategies to mitigate this impact.

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 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: Positive
• Last Price: 72.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 72.09 is below the 20-day moving average (MA) of 73.90, below the 50-day MA of 74.22, and above the 200-day MA of 60.45, indicating a neutral trend. The MACD of -1.20 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, 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
BKE	81 Outperform	$3.03B	14.85	43.13%	6.57%	1.62%	-2.57%
ANF	78 Outperform	$4.49B	9.00	43.30%	―	9.34%	10.61%
URBN	77 Outperform	$6.34B	14.28	19.72%	―	9.63%	56.06%
BOOT	76 Outperform	$5.71B	29.08	18.15%	―	16.70%	27.76%
GAP	75 Outperform	$8.83B	10.23	28.07%	2.61%	-0.05%	15.17%
AEO	75 Outperform	$3.26B	18.15	12.17%	2.78%	-2.73%	-16.71%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%

Urban Outfitters Corporate Events

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.