Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $6.35B
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.96
• Revenue Growth: 8.38%
• EPS Growth: 52.18%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): 1.16
• Shares Outstanding: 89,642,150
• 10 Day Avg. Volume: 1,717,222
• 30 Day Avg. Volume: 2,464,229
• PEG Ratio: -0.35
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -44.96
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 1.69
• 1Y Price Target: $77.18
• Price Target Upside: 11.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $81.00 ▲(16.51%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.

Market Position

Nuuly has quickly become an industry leader in the apparel rental market, offering over 25,000 styles from more than 500 brands and maintaining leading margins with four consecutive quarters of profitability.

Revenue Growth

Nuuly will represent approximately 40% of URBN's revenue dollar growth over the next 5 years.

Negative Factors

Market Underestimation

Nuuly is seen as a potential growth and margin expansion driver for URBN that is currently underestimated by the market.

Revenue Dependency

Nuuly contributes to the success of URBN by driving product costs down and leveraging the shared services platform, while also increasing sales from sister brands.

Urban Outfitters Business Overview & Revenue Model

Company Description

Urban Outfitters, Inc. (URBN) is a lifestyle retail corporation headquartered in Philadelphia, Pennsylvania. It operates a portfolio of global consumer brands including Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN. The company caters to a young adult demographic, offering a diverse range of merchandise such as clothing, accessories, footwear, home furnishings, and beauty products. URBN is known for its unique and trendy products that blend contemporary fashion with a bohemian flair.

How the Company Makes Money

Urban 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 Financial Statement Overview

Summary

Urban Outfitters demonstrates strong financial performance with impressive revenue growth and improved profitability. The company's balance sheet is stable, though leverage requires monitoring. Cash flow is robust, indicating efficient cash generation.

Income Statement

Urban Outfitters has shown impressive revenue growth, with a revenue increase from $4.79 billion in 2023 to $5.55 billion in 2025. The gross profit margin improved significantly to 34.7% in 2025. Net profit margin also increased to 7.25% over the same period, indicating enhanced profitability. However, the EBIT and EBITDA margins remained relatively stable, reflecting consistent operational efficiency.

Balance Sheet

The company's balance sheet is strong with a steady equity ratio of approximately 54.7% in 2025, indicating solid financial stability. The debt-to-equity ratio has remained manageable, marginally improving as equity increased. Return on Equity (ROE) improved to 16.29%, showcasing effective use of shareholders' equity. The balance sheet indicates a healthy financial position, though slightly high leverage may pose potential risks.

Cash Flow

Urban Outfitters' cash flow statement shows robust free cash flow growth, rising from a negative $56.78 million in 2023 to a positive $502.83 million in 2025. The operating cash flow to net income ratio is sound at 1.25, indicating efficient cash generation relative to net income. The positive trend in free cash flow supports future growth opportunities, though fluctuations in capital expenditures need monitoring.

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
	EBIT
473.76M	388.07M	226.62M	408.57M	3.97M
	EBITDA
629.44M	496.09M	514.28M	697.83M	307.78M
	Net Income Common Stockholders
402.46M	287.67M	159.70M	310.62M	1.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
610.43M	465.06M	382.64M	446.00M	570.33M
	Total Assets
4.52B	4.11B	3.68B	3.79B	3.55B
	Total Debt
1.10B	1.08B	1.12B	1.19B	1.33B
	Net Debt
807.88M	900.18M	916.11M	980.82M	933.08M
	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: 69.52
• 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 69.52 is below the 20-day moving average (MA) of 69.99, above the 50-day MA of 59.38, and above the 200-day MA of 49.98, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.22 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
URBN	79 Outperform	$6.35B	14.57	19.55%	―	8.38%	52.18%
BKE	75 Outperform	$2.28B	11.49	44.55%	3.27%	-1.08%	-8.20%
GAP	72 Outperform	$7.89B	9.22	29.16%	3.12%	1.07%	28.03%
BOOT	68 Neutral	$5.02B	27.61	17.44%	―	14.64%	21.68%
ANF	67 Neutral	$3.57B	7.39	46.98%	―	12.54%	25.47%
AEO	64 Neutral	$1.68B	9.93	12.19%	5.15%	-0.95%	-10.51%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%

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.

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.

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.

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.