Urban Outfitters (URBN) AI Stock Analysis

• Market Cap: $6.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.97
• Revenue Growth: 8.38%
• EPS Growth: 52.18%
• Country: US
• Employees: 11,310
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Retail
• EPS (TTM): 1.16
• Shares Outstanding: 89,642,150
• 10 Day Avg. Volume: 1,633,076
• 30 Day Avg. Volume: 1,794,732
• PEG Ratio: 1.18
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.40
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 3.01
• 1Y Price Target: $77.50
• Price Target Upside: 7.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• 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 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 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 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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.68B	5.55B	5.15B	4.80B	4.55B	3.45B
Gross Profit	2.01B	1.93B	1.73B	1.43B	1.49B	861.91M
EBITDA	677.06M	621.67M	496.09M	514.28M	697.83M	307.78M
Net Income	449.04M	402.46M	287.67M	159.70M	310.62M	1.24M
Balance Sheet
Total Assets	4.46B	4.52B	4.11B	3.68B	3.79B	3.55B
Cash, Cash Equivalents and Short-Term Investments	475.02M	610.43M	465.06M	382.64M	446.00M	570.33M
Total Debt	1.14B	1.10B	1.08B	1.12B	1.19B	1.33B
Total Liabilities	2.03B	2.05B	2.00B	1.89B	2.05B	2.07B
Stockholders Equity	2.43B	2.47B	2.11B	1.79B	1.75B	1.48B
Cash Flow
Free Cash Flow	289.67M	320.25M	309.79M	-56.78M	96.89M	126.57M
Operating Cash Flow	477.31M	502.83M	509.41M	142.73M	359.32M	285.81M
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 Price: 71.93
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.33B	14.77	19.55%	―	8.38%	52.18%
ANF	79 Outperform	$4.23B	8.57	46.98%	―	12.54%	25.47%
BKE	78 Outperform	$2.40B	12.09	44.55%	2.97%	-1.08%	-8.20%
GAP	71 Outperform	$8.45B	9.87	29.16%	2.91%	1.07%	28.03%
AEO	68 Neutral	$1.72B	10.14	12.19%	4.99%	-0.95%	-10.51%
BOOT	68 Neutral	$4.97B	28.21	17.44%	―	14.64%	21.68%
Sector *	67 Neutral	¥250.86B	13.17	6.48%	2.78%	5.05%	-11.96%

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.