Want to see URBN full AI Analyst Report?
Top Page
Urban Outfitters
(NASDAQ:URBN)
Select Model
Select Model
Rating:79Outperform
Price Target:
$95.00
▲(25.36% Upside)
Action:Reiterated
Date:08/27/26
URBN scores well primarily on strengthened financial performance (material margin and ROE improvement) and strong technical momentum with price above key moving averages. The score is tempered by mixed cash-flow conversion and slowing revenue growth, while valuation is reasonable but not clearly discounted (P/E ~15.7) and the earnings call supports continued growth despite freight and markdown headwinds.
Positive Factors
Diversified brand and channel portfolio
URBN combines multiple lifestyle brands with stores, e-commerce, wholesale and subscription channels. Broad-based demand reduces reliance on one concept and supports more resilient growth across consumer and distribution environments.
Negative Factors
Decelerating top-line growth
Slower revenue expansion means future earnings growth may depend increasingly on margins rather than volume. If customer demand or brand momentum softens, the reduced top-line acceleration could limit operating leverage and profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified brand and channel portfolio
URBN combines multiple lifestyle brands with stores, e-commerce, wholesale and subscription channels. Broad-based demand reduces reliance on one concept and supports more resilient growth across consumer and distribution environments.
Read all positive factors
Urban Outfitters Key Performance Indicators (KPIs)
Any
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.
Shows how much each brand under Urban Outfitters contributes to total sales, highlighting which brands are driving growth and which might need strategic adjustments.
Data provided by:
The Fly
The FlyUrban Outfitters (URBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.49B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)15.7
Beta (1Y)1.04
Revenue Growth11.23%
EPS Growth8.96%
CountryUS
Employees31,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)6.50
Shares Outstanding85,635,086
10 Day Avg. Volume1,193,521
30 Day Avg. Volume1,171,373
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)2.27
Price to Sales (P/S)1.04
P/FCF Ratio14.36
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$93.11Price Target Upside22.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)6.18
Revenue Forecast (FY)$6.71B
Urban Outfitters Business Overview & Revenue Model
Company Description
Urban Outfitters, Inc. engages in the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail locations, websites, catalogs, and mobile applications. It operates through ...
How the Company Makes Money
URBN makes money primarily by selling merchandise and related services through multiple brand-led channels. The company’s core revenue stream is direct-to-consumer retail sales (online and in stores) of apparel and accessories (the largest categor...
Urban Outfitters Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Nov 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone driven by record quarterly sales, operating income, and EPS, strong brand-level performances (notably Nuuly, FP group, and Urban Outfitters), and a constructive outlook for Q3 and FY'27 with modest gross margin improvement expected. Key operational investments (logistics automation, AI, store expansion) and tariff refunds further support the outlook. The main near-term challenges are fuel-related freight surcharges, prior tariff-driven cost pressure (largely refunded), and some elevated markdowns/slower turns at Anthropologie. Management emphasized they have largely offset macro headwinds and remain confident in execution, so positive achievements materially outweigh the manageable headwinds.Positive Updates
Record Quarterly Results
Company delivered record Q2 sales and earnings: net sales grew 10% to $1.7 billion, operating income rose 11% to $193 million, and diluted EPS increased 9% to $1.72. This marked the eighth consecutive quarter of record sales and profits.
Negative Updates
Fuel Surcharges and Freight Headwinds
Higher inbound freight, domestic transportation, and delivery expenses driven by fuel surcharges related to the Middle East war negatively impacted results: Q2 headwind ~50 basis points on IMU and ~20 basis points on outbound delivery/freight; management assumes current surcharges persist, estimating ~70 basis points unfavorable impact on each of Q3 and Q4.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Quarterly Results
Company delivered record Q2 sales and earnings: net sales grew 10% to $1.7 billion, operating income rose 11% to $193 million, and diluted EPS increased 9% to $1.72. This marked the eighth consecutive quarter of record sales and profits.
Read all positive updates
Company Guidance
Management guided Q3 total company sales to grow in the high-single-digit range, with Retail segment comps up mid-single-digits (FP Group high-single-digits, Urban Outfitters mid-single-digits, Anthropologie low- to mid-single-digits), Nuuly revenue in the high-20s, and Wholesale growth in the low-teens (FP Group wholesale called out for mid-teens); they expect Q3 gross profit rate to improve 25–50 basis points year‑over‑year and full‑year GP to be ~25 bps higher, while assuming oil‑surcharge headwinds of roughly 70 bps in each of Q3 and Q4. SG&A is planned to grow below sales in Q3 and in line with or below sales for the full year, inventory is expected to grow at or below sales in Q3, and the adjusted tax rate is targeted at ~24.75% for Q3 and FY‑27. Capital expenditures for FY‑27 are planned at about $475 million (≈35% retail, 50% logistics, 15% technology/home office), the company plans roughly 54 store openings and 18 closures (net ~36; including ~21 FP Movement, 12 Free People, 12 Anthropologie and 8 Urban Outfitters), and Nuuly is expected to exceed $700 million in FY‑27 revenue with a high‑single‑digit operating profit rate.Urban Outfitters Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.47B | 6.17B | 5.55B | 5.15B | 4.80B | 4.55B |
| Gross Profit | 2.43B | 2.22B | 1.93B | 1.73B | 1.43B | 1.49B |
| EBITDA | 813.55M | 725.43M | 621.67M | 491.76M | 324.93M | 511.41M |
| Net Income | 569.06M | 464.92M | 402.46M | 287.67M | 159.70M | 310.62M |
Balance Sheet | ||||||
| Total Assets | 5.12B | 5.01B | 4.52B | 4.11B | 3.68B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 716.13M | 695.93M | 610.43M | 465.06M | 382.64M | 446.00M |
| Total Debt | 1.21B | 1.23B | 1.10B | 1.08B | 1.12B | 1.19B |
| Total Liabilities | 2.27B | 2.19B | 2.05B | 2.00B | 1.89B | 2.05B |
| Stockholders Equity | 2.85B | 2.82B | 2.47B | 2.11B | 1.79B | 1.75B |
Cash Flow | ||||||
| Free Cash Flow | 317.77M | 445.13M | 320.25M | 309.79M | -56.78M | 96.89M |
| Operating Cash Flow | 715.89M | 575.19M | 502.83M | 509.41M | 142.73M | 359.32M |
| Investing Cash Flow | -110.11M | -311.65M | -308.77M | -521.65M | -32.01M | -487.66M |
| Financing Cash Flow | -340.67M | -191.37M | -77.11M | -12.13M | -118.40M | -60.27M |
Urban Outfitters Technical Analysis
Positive
75.78
Price Trends
73.93
Positive
72.59
Positive
71.35
Positive
Market Momentum
0.90
Negative
65.70
Neutral
71.81
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 75.78 is below the 20-day moving average (MA) of 76.83, above the 50-day MA of 73.93, and above the 200-day MA of 71.35, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 71.81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.49B | 15.68 | 17.64% | ― | 11.23% | 8.96% | |
79 Outperform | $4.84B | 12.45 | 36.89% | ― | 4.73% | 8.69% | |
72 Outperform | $2.25B | 10.08 | 46.91% | 10.36% | 6.22% | 8.74% | |
69 Neutral | $7.25B | 8.17 | 26.47% | 3.58% | 1.58% | 11.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $2.80B | 10.66 | 17.24% | 2.94% | 6.22% | 65.05% |
* Consumer Cyclical Sector Average
URBN
Urban Outfitters
82.95
4.94
6.33%
ANF
Abercrombie Fitch
147.75
52.39
54.94%
AEO
American Eagle
17.59
4.72
36.72%
BKE
Buckle
44.17
-8.11
-15.51%
GAP
Gap Inc
21.15
-0.48
-2.24%
Urban Outfitters Corporate Events
Business Operations and StrategyFinancial Disclosures
Urban Outfitters Reports Record Quarterly Sales and Profits
Positive
Aug 27, 2026
Urban Outfitters reported record results for the quarter and six months ended July 31, 2026, with quarterly net income of $240.7 million, earnings of $2.78 per diluted share and total net sales up 10.4% to $1.66 billion. Adjusted net income for th...
Executive/Board ChangesShareholder Meetings
Urban Outfitters Shareholders Reaffirm Board, Auditor and Pay
Positive
Jun 5, 2026
On June 3, 2026, Urban Outfitters shareholders elected all ten director nominees to serve until the 2027 annual meeting, reaffirming the company’s existing board leadership and governance structure. Investors also ratified Deloitte Touche L...
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.