Global lifestyle retailer Urban Outfitters (URBN) and telehealth platform Hims & Hers Health (HIMS) have teamed up to offer personalized wellness and health solutions on urbanoutfitters.com.
Shares of Urban Outfitters closed 3.4% higher on Wednesday, and Hims & Hers’ shares ended the day 1.8% higher.
Urban Outfitters’ product portfolio includes housewares, activewear and gear, accessories, beauty and wellness products, footwear, men’s and women’s apparel, among other things. Hims & Hers offers personal care products and over-the-counter and prescription drugs.
Initially, Hims’ products will be available on Urban Outfitters’ website. The companies plan to add more Hims’ products as well as introduce a few Hers’ products on urbanoutfitters.com in the coming months. (See Urban Outfitters stock chart on TipRanks)
The products on offer will include supplements, sexual health and wellness, hair loss, skincare, and other personal care items. (See Hims & Hers stock chart on TipRanks)
Executive Director of merchandising for Urban Outfitters Jena Tracey said, “Digitally native consumers who visit Urban Outfitters are looking for the most personalized experiences that help them express their authentic selves. There is great synergy between the Urban Outfitters customer and those digitally native consumers who are interested in the personalized health and wellness offerings of Hims & Hers.”
Jefferies analyst Janine Stichter recently assigned a Buy rating to Urban Outfitters and raised the price target to $47 from $46 (14% upside potential). The analyst said, “We see URBN as an early and outsized beneficiary of the emerging fashion cycle and pent-up demand for apparel.”
Overall, Urban Outfitters has a Moderate Buy consensus rating based on 4 Buys and 11 Holds. The average Urban Outfitters price target of $41.46 implies that shares are fully valued at current levels. The company’s shares have gained 173.7% over the past year.
Piper Sandler analyst Sean Wieland recently maintained a Hold rating on Hims & Hers with a price target of $11 (1% upside potential). In a research note to investors, the analyst said the competition was increasing in the direct-to-consumer online pharmacy segment.
Overall, Hims & Hers has a Moderate Buy consensus rating based on 3 Buys and 2 Holds. The average Hims & Hers Health price target of $13.75 implies 26.3% upside potential from current levels. The company’s shares have lost 30.6% over the past six months.
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