Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $6.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.97
• Revenue Growth: 8.38%
• EPS Growth: 52.18%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Retail
• EPS (TTM): 1.16
• Shares Outstanding: 89,642,150
• 10 Day Avg. Volume: 1,576,517
• 30 Day Avg. Volume: 1,675,697
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 8.27
• 1Y Price Target: $81.00
• Price Target Upside: 5.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $86.00 ▲(12.08% Upside)

Urban Outfitters' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust growth across brands and strategic initiatives contribute to a promising outlook. Technical indicators support a positive trend, though valuation is only moderate due to the lack of a dividend yield. Overall, the stock is well-positioned for continued growth, with some challenges noted in specific segments.

Positive Factors

Expansion Opportunities

There is a significant opportunity for growth with plans to open new Free People and Free People Movement stores, driven by improving average sales per square foot.

Growth Drivers

Nuuly, the clothing rental service, has achieved profitability and is seen as a strong growth driver for the company.

Market Leadership

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.

Negative Factors

Brand Performance

Negative comps and operating losses at the Urban Outfitters brand have negatively impacted the stock's valuation multiple.

Valuation Concerns

The stock's valuation has been challenged by negative comps and operating losses at the Urban Outfitters brand.

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 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.55B	5.15B	4.80B	4.55B	3.45B
Gross Profit	1.93B	1.73B	1.43B	1.49B	861.91M
EBITDA	621.67M	496.09M	514.28M	697.83M	307.78M
Net Income	402.46M	287.67M	159.70M	310.62M	1.24M
Balance Sheet
Total Assets	4.52B	4.11B	3.68B	3.79B	3.55B
Cash, Cash Equivalents and Short-Term Investments	610.43M	465.06M	382.64M	446.00M	570.33M
Total Debt	1.10B	1.08B	1.12B	1.19B	1.33B
Total Liabilities	2.05B	2.00B	1.89B	2.05B	2.07B
Stockholders Equity	2.47B	2.11B	1.79B	1.75B	1.48B
Cash Flow
Free Cash Flow	320.25M	309.79M	-56.78M	96.89M	126.57M
Operating Cash Flow	502.83M	509.41M	142.73M	359.32M	285.81M
Investing Cash Flow	-308.77M	-521.65M	-32.01M	-487.66M	-101.90M
Financing Cash Flow	-77.11M	-12.13M	-118.40M	-60.27M	-10.42M

Urban Outfitters Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.73
• 50DMA: Positive
• 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 76.73 is below the 20-day moving average (MA) of 77.10, above the 50-day MA of 73.18, and above the 200-day MA of 57.81, indicating a neutral trend. The MACD of 1.42 indicates Positive momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 44.79 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	79 Outperform	$2.84B	14.30	44.55%	7.02%	-1.08%	-8.20%
ANF	76 Outperform	$4.47B	9.24	46.98%	―	12.54%	25.47%
BOOT	76 Outperform	$4.95B	26.39	18.15%	―	16.70%	27.76%
URBN	75 Outperform	$6.95B	16.08	19.55%	―	8.38%	52.18%
GAP	73 Outperform	$7.72B	9.02	29.16%	3.01%	1.07%	28.03%
AEO	69 Neutral	$2.25B	13.29	12.19%	3.89%	-0.95%	-10.51%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%

Urban Outfitters Corporate Events

Urban Outfitters Holds Annual Shareholder Meeting

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.

Urban Outfitters Reports Record Q1 Financial Results

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.