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Urban Outfitters (URBN)
NASDAQ:URBN

Urban Outfitters (URBN) AI Stock Analysis

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Urban Outfitters

(NASDAQ:URBN)

Rating:79Outperform
Price Target:
$81.00
▲(12.61%Upside)
Urban Outfitters receives a robust overall score driven by strong financial performance, positive technical indicators, and an optimistic outlook from the latest earnings call. While the valuation is reasonable, the lack of a dividend yield is a minor drawback. The company's strategic initiatives and brand strength, particularly in Nuuly, suggest a promising future despite some regional challenges.
Positive Factors
Growth Potential
Nuuly is already the leader in the apparel rental market, and URBN management seems to have figured out how to run a very profitable rental business.
Operational Efficiency
The efficiency of Nuuly's distribution centers is a key factor for its success, with in-house solutions that reduce labor needs and the potential for further automation and labor savings.
Revenue Contribution
Nuuly will represent approximately 40% of URBN's revenue dollar growth over the next 5 years.
Negative Factors
Cannibalization Concerns
Contrary to expectations of cannibalization, Nuuly has proven to be incremental, with subscribers spending more and buying more frequently from sister brands.
Market Underestimation
Nuuly is seen as a potential growth and margin expansion driver for URBN that is currently underestimated by the market.

Urban Outfitters (URBN) vs. SPDR S&P 500 ETF (SPY)

Urban Outfitters Business Overview & Revenue Model

Company DescriptionUrban 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 MoneyUrban Outfitters generates revenue primarily through the sale of merchandise in its retail stores and online platforms. The company's revenue streams are diversified across its various brands, each targeting distinct consumer segments. Urban Outfitters, Anthropologie, and Free People are the primary contributors to its sales, each offering a mix of apparel, accessories, and lifestyle products. In addition to direct-to-consumer sales, URBN also earns money through its wholesale operations, particularly under the Free People brand, which supplies products to department stores and specialty retailers. The company's earnings are influenced by factors such as brand popularity, fashion trends, seasonal demand, and its ability to effectively manage inventory and supply chain operations. URBN's e-commerce presence is a significant revenue driver, benefiting from the increasing consumer shift towards online shopping.

Urban Outfitters Key Performance Indicators (KPIs)

Any
Any
Revenue by Brand
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.
Chart InsightsUrban Outfitters' Anthropologie and Free People brands are experiencing robust growth, with Anthropologie showing consistent revenue increases and Free People benefiting from strong wholesale performance. Nuuly's remarkable 60% revenue growth, driven by a surge in subscribers, significantly boosts overall company performance. However, Urban Outfitters brand faces challenges in North America, with digital sales struggling due to past promotional strategies. Despite tariff concerns, strategic supply chain diversification is mitigating risks, positioning the company for continued growth, as evidenced by optimistic guidance and plans for new store openings.
Data provided by:Main Street Data

Urban Outfitters Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2026)
|
% Change Since: 20.69%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Urban Outfitters, Inc. with record-breaking revenue and growth across multiple brands, particularly Nuuly and Anthropologie. However, there are concerns about potential tariff impacts and ongoing challenges with Urban Outfitters in North America. Overall, the positive achievements and strategic management outweigh the lowlights.
Q1-2026 Updates
Positive Updates
Record-Breaking Revenue and Growth
Total URBN sales grew by 11%, hitting a Q1 record of $1.3 billion. All brands delivered positive sales comps, with four out of five brands posting record first-quarter sales.
Nuuly’s Exceptional Performance
Nuuly delivered impressive 60% revenue growth, with a 53% increase in average active subscribers, adding nearly 400 basis points of revenue growth to total URBN top line.
Gross Profit and Operating Income Surge
URBN saw a 20% increase in gross profit dollars, reaching a record $489 million, with a gross profit rate improvement of 278 basis points. Operating income rose by 72% compared to last year, reaching $128 million.
Anthropologie and Free People Success
Anthropologie achieved a 7% increase in retail segment comp, while Free People delivered an 11% increase in total retail and wholesale segment sales. Free People Wholesale revenues increased by 26%.
Urban Outfitters' Turnaround
Urban Outfitters posted the first positive sales comp in some time, with a 2% global retail segment comp. Europe saw an exceptionally strong positive 14% retail segment comp.
Strategic Inventory and Supply Chain Management
URBN teams have diversified countries of origin, with no single country accounting for more than 25% of production, mitigating potential tariff impacts.
Negative Updates
Tariff and Supply Chain Concerns
Uncertainty around tariffs and potential supply chain disruptions could negatively impact gross margins by 20 basis points in the back half of the year.
North America's Urban Outfitters Struggles
North America recorded a negative 4% retail segment comp, with the digital business continuing to face challenges due to heavy promotional activity from the prior year.
SG&A Increases
SG&A expenses increased by 8.1%, driven by higher marketing spend and increased store labor costs.
Company Guidance
During Urban Outfitters, Inc.'s First Quarter Fiscal 2026 Earnings Call, the company shared impressive metrics reflecting strong performance and optimistic guidance. For Q1, total URBN sales grew by 11%, reaching $1.3 billion, with a 5% increase in the Retail segment comp and a notable 60% revenue growth from Nuuly, driven by a 53% increase in average active subscribers. The Wholesale segment experienced a 24% revenue increase, while gross profit dollars rose by 20%, improving the gross profit rate by 278 basis points to 36.8%. SG&A expenses increased by 8.1%, leveraging by 65 basis points. Operating income surged by 72%, reaching $128 million, with a net income increase of 75% to $108 million or $1.16 per diluted share. For Q2, URBN expects high single-digit sales growth, with mid-single-digit retail segment comps for Anthropologie and Free People brands, low single-digit positive comps for Urban Outfitters, and mid-double-digit revenue growth for Nuuly. Gross profit margins are anticipated to improve by about 50 to 100 basis points, despite tariff-related challenges. The company plans to open approximately 64 new stores and anticipates capital expenditures of around $240 million for FY'26.

Urban Outfitters Financial Statement Overview

Summary
Urban Outfitters demonstrates strong financial health with consistent revenue growth, robust profitability margins, and a stable balance sheet. The company manages costs effectively, evident from its solid operating and net profit margins. However, cash flow variability slightly tempers the overall financial performance.
Income Statement
82
Very Positive
Urban Outfitters has demonstrated strong revenue growth with the TTM (Trailing-Twelve-Months) revenue growing by 2.32% from the previous annual period. The company maintains healthy margins with a gross profit margin of 35.34% and a net profit margin of 7.91%. EBIT and EBITDA margins are also robust at 9.29% and 11.92%, respectively, indicating efficient cost management and strong operating performance.
Balance Sheet
75
Positive
The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.47, suggesting moderate leverage. The return on equity stands at 18.47%, reflecting effective utilization of shareholder funds to generate profits. The equity ratio is 54.55%, indicating a solid equity base relative to total assets, which contributes to financial stability.
Cash Flow
78
Positive
Urban Outfitters exhibits a solid cash flow performance with a free cash flow to net income ratio of 0.65, indicating good conversion of income into cash. The operating cash flow to net income ratio is 1.06, suggesting that net income is well-supported by cash flow from operations. However, the free cash flow growth rate shows a slight decline, indicating some variability in free cash flow generation.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue5.68B5.55B5.15B4.80B4.55B3.45B
Gross Profit2.01B1.93B1.73B1.43B1.49B861.91M
EBITDA677.06M621.67M496.09M514.28M697.83M307.78M
Net Income449.04M402.46M287.67M159.70M310.62M1.24M
Balance Sheet
Total Assets4.46B4.52B4.11B3.68B3.79B3.55B
Cash, Cash Equivalents and Short-Term Investments475.02M610.43M465.06M382.64M446.00M570.33M
Total Debt1.14B1.10B1.08B1.12B1.19B1.33B
Total Liabilities2.03B2.05B2.00B1.89B2.05B2.07B
Stockholders Equity2.43B2.47B2.11B1.79B1.75B1.48B
Cash Flow
Free Cash Flow289.67M320.25M309.79M-56.78M96.89M126.57M
Operating Cash Flow477.31M502.83M509.41M142.73M359.32M285.81M
Investing Cash Flow-223.58M-308.77M-521.65M-32.01M-487.66M-101.90M
Financing Cash Flow-238.15M-77.11M-12.13M-118.40M-60.27M-10.42M

Urban Outfitters Technical Analysis

Technical Analysis Sentiment
Positive
Last Price71.93
Price Trends
50DMA
65.14
Positive
100DMA
58.51
Positive
200DMA
52.22
Positive
Market Momentum
MACD
1.67
Positive
RSI
53.99
Neutral
STOCH
59.63
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 71.93 is above the 20-day moving average (MA) of 70.06, above the 50-day MA of 65.14, and above the 200-day MA of 52.22, indicating a bullish trend. The MACD of 1.67 indicates Positive momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.63 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$6.33B14.7719.55%8.38%52.18%
ANANF
79
Outperform
$4.23B8.5746.98%12.54%25.47%
BKBKE
78
Outperform
$2.40B12.0944.55%2.97%-1.08%-8.20%
GAGAP
71
Outperform
$8.45B9.8729.16%2.91%1.07%28.03%
AEAEO
68
Neutral
$1.72B10.1412.19%4.99%-0.95%-10.51%
68
Neutral
$4.97B28.2117.44%14.64%21.68%
67
Neutral
¥250.86B13.176.48%2.78%5.05%-11.96%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
URBN
Urban Outfitters
71.93
27.56
62.11%
ANF
Abercrombie Fitch
87.04
-87.06
-50.01%
AEO
American Eagle
10.03
-9.51
-48.67%
BKE
Buckle
46.96
13.21
39.14%
GAP
Gap Inc
22.64
0.64
2.91%
BOOT
Boot Barn
168.49
43.32
34.61%

Urban Outfitters Corporate Events

Executive/Board ChangesShareholder Meetings
Urban Outfitters Holds Annual Shareholder Meeting
Neutral
Jun 6, 2025

On June 4, 2025, Urban Outfitters held its Annual Meeting of Shareholders where shareholders elected ten directors for a term expiring in 2026, ratified Deloitte & Touche LLP as the independent auditor for fiscal year 2026, and approved executive compensation in an advisory vote. These decisions reflect shareholder support for the company’s leadership and financial oversight, potentially impacting its governance and strategic direction.

The most recent analyst rating on (URBN) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Urban Outfitters stock, see the URBN Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Urban Outfitters Reports Record Q1 Financial Results
Positive
May 22, 2025

On May 21, 2025, Urban Outfitters announced record financial results for the first quarter ending April 30, 2025, with net income reaching $108.3 million and earnings per diluted share at $1.16. The company reported a 10.7% increase in total net sales to $1.33 billion, driven by growth across all segments, including a significant 59.5% rise in subscription segment sales. The gross profit rate improved by 278 basis points, and the company repurchased 3.3 million shares during the quarter. These results highlight the effectiveness of Urban Outfitters’ strategy and the strength of its brands, positioning the company for continued success.

The most recent analyst rating on (URBN) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Urban Outfitters stock, see the URBN Stock Forecast page.

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.Date of analysis: Jun 17, 2025