Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $5.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.08
• Revenue Growth: 11.09%
• EPS Growth: 51.51%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 1.43
• Shares Outstanding: 89,678,940
• 10 Day Avg. Volume: 2,030,750
• 30 Day Avg. Volume: 1,403,993
• PEG Ratio: 0.74
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 14.36
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 10.85
• 1Y Price Target: $87.78
• Price Target Upside: 31.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.75
• Revenue Forecast (FY): $6.64B

• Rating: 68 Neutral
• Price Target: $72.00 ▲(7.62% Upside)
• Action: Downgraded Date: 03/02/26
• Date: Action: Downgraded 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.

Multi-year revenue and margin recovery

Sustained revenue growth and meaningful margin recovery over several years indicate improved merchandise margins and operating leverage. A higher gross margin and positive net margin reflect structural improvements in sourcing, pricing, and lower markdowns that should support durable profitability absent major industry shocks.

Improving leverage and strengthened capital base

Material decline in leverage and a larger equity base increase financial flexibility. Combined with strengthened operating cash generation (operating cash flow and FCF improved into 2026), this supports capital allocation for growth, store expansion and Nuuly investment while lowering default and refinancing risk.

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.

Tariff-driven margin pressure

Sustained tariff headwinds are a structural cost pressure that erodes initial merchandise margin and limits gross margin upside absent price increases or cost offsets. Persistent tariff impacts reduce pricing flexibility and compress margins, particularly for apparel with import exposure.

Rising SG&A and capital intensity from expansion

Higher marketing-driven SG&A and a sizable FY26 capex/store opening plan raise structural operating and cash requirements. If spending does not sustainably boost unit economics, increased opex and capex can compress operating leverage and constrain free cash flow availability over the medium term.

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 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 directly to consumers. A significant portion of its revenue also comes from e-commerce sales, which have been increasingly important, particularly in response to changing consumer shopping behaviors. Additionally, Urban Outfitters earns income through wholesale distribution, selling its products to other retailers and boutiques. The company has developed strategic partnerships with various brands and influencers to enhance its product offerings and reach a broader audience, contributing to its overall earnings. Seasonal promotions, exclusive collections, and a focus on customer loyalty through membership programs further bolster its revenue streams.

Urban Outfitters Financial Statement Overview

Summary

Strong multi-year recovery: revenue expanded from $3.45B (2021) to $6.17B (2026) and profitability improved materially (gross margin ~36% and net margin ~7.5% in 2026). Balance sheet leverage improved (debt-to-equity down to ~0.44 by 2025–2026), while cash generation is solid but uneven (2023 negative FCF; 2026 FCF down YoY despite higher earnings). Some reported data inconsistencies (e.g., 2026 ROE shown as 0 and an inconsistent operating margin field) reduce confidence in a few line-item trends.

Income Statement

Revenue has expanded steadily from $3.45B (2021) to $6.17B (2026), with growth accelerating in 2026. Profitability has improved meaningfully versus the low-profit 2021 period: gross margin rose to ~36% in 2026 (from ~25% in 2021) and net margin increased to ~7.5% in 2026 (from near breakeven in 2021). A watch-out is some margin volatility across the cycle (e.g., 2022 stronger, 2023 weaker), and one operating margin field appears inconsistent in 2026, limiting trend clarity for that specific line item.

Balance Sheet

Leverage looks manageable and improving: debt-to-equity declined from ~0.90 (2021) to ~0.44 (2025–2026), while equity increased to ~$2.82B in 2026 (from ~$1.48B in 2021). Total debt is roughly $1.23B in 2026—up modestly versus recent years, but supported by a larger capital base. Profitability on equity was solid in 2024–2025 (ROE ~14%–16%), though the 2026 ROE value is shown as 0, which appears to be a data issue and prevents confirming the latest return profile.

Cash Flow

Cash generation has strengthened materially since 2023: operating cash flow rose to ~$575M in 2026 and free cash flow to ~$445M, with free cash flow covering ~77% of net income in 2026 (and improving vs. earlier years). The main weakness is volatility—2023 posted negative free cash flow, and 2026 free cash flow declined ~13% year over year despite higher earnings, suggesting working-capital or reinvestment swings that can pressure consistency.

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

• Technical Analysis Sentiment: Negative
• Last Price: 66.90
• 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 66.9 is below the 20-day moving average (MA) of 68.84, below the 50-day MA of 72.03, and below the 200-day MA of 71.47, indicating a bearish trend. The MACD of -1.61 indicates Positive momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 40.17 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
BKE	79 Outperform	$2.71B	14.12	41.26%	6.82%	4.67%	3.46%
ANF	74 Outperform	$4.55B	6.48	37.01%	―	7.57%	1.75%
GAP	74 Outperform	$10.13B	9.00	25.10%	2.45%	0.29%	3.65%
URBN	68 Neutral	$5.91B	13.74	17.59%	―	11.09%	51.51%
AEO	66 Neutral	$3.77B	20.90	12.36%	2.09%	-1.15%	-0.98%
VSCO	65 Neutral	$4.99B	-19.29	31.50%	―	2.97%	9.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Urban Outfitters Corporate Events

Urban Outfitters Posts Record Quarterly and Annual Results

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 all-time high of $1.80 billion, driven by 5.5% comparable retail growth across digital and stores, a 42.6% jump in subscription revenue on a 40.3% increase in active Nuuly subscribers, and a 9.1% gain in wholesale sales.

For the full fiscal year, net income reached $464.9 million, or $5.06 per diluted share, with adjusted earnings of $5.44 per share on record revenue of $6.17 billion, up 11.1% from the prior year. Gross profit margin expanded by more than 100 basis points for both the quarter and year on lower markdowns and cost leverage, while all three segments contributed to operating gains, underscoring stronger profitability and momentum in the Nuuly rental business for stakeholders.

The most recent analyst rating on (URBN) stock is a Hold with a $75.00 price target. To see the full list of analyst forecasts on Urban Outfitters stock, see the URBN Stock Forecast page.

Urban Outfitters Reports Record Holiday Sales Growth

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 sales across both digital and store channels; brand-level performance was led by a 9% comparable sales increase at Urban Outfitters, 5% at Free People and 3% at Anthropologie, while FP Movement comparable sales surged 18%. Over the eleven months ended December 31, 2025, total net sales grew 11%, supported by an 8% increase in Retail segment sales, a 51% jump in Subscription segment revenue on the back of a 46% increase in average active subscribers to Nuuly, and a 15% rise in Wholesale segment sales largely from stronger Free People demand at specialty and department stores, as the company expanded its footprint by opening 58 new stores and closing 7, underscoring continued momentum in its multi-channel, multi-brand growth strategy.

The most recent analyst rating on (URBN) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Urban Outfitters stock, see the URBN Stock Forecast page.