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Urban Outfitters (URBN)
NASDAQ:URBN
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Urban Outfitters
(NASDAQ:URBN)
76Outperform
Positive Factors
Earnings
Urban Outfitters delivered its fourth consecutive EPS beat, driven by reduced markdown activity and ongoing IMU improvement.
Growth Opportunities
Anthropologie and Free People are two of the best performing apparel brands in the market, and Nuuly is a good growth opportunity.
Profitability
Urban Outfitters benefits from strong e-commerce penetration and a healthy real estate portfolio in key metro markets.
Negative Factors
Brand Relevance
Urban Outfitters has a declining relevance of both its brand and assortment, impacting its performance negatively.
Digital Presence
Urban Outfitters may have lost market share to more digitally-savvy peers due to its low digital sales penetration.
Inventory Management
Inventory levels appeared to worsen quarter-over-quarter due to an intentional pull forward of receipts to avoid potential supply chain disruption.
Urban Outfitters (URBN) vs. S&P 500 (SPY)
Market Cap
$5.31B
Dividend YieldN/A
Average Volume (3M)2.45M
Price to Earnings (P/E)13.9
Beta (1Y)0.92
Revenue Growth7.71%
EPS Growth40.01%
CountryUS
Employees11,310
SectorConsumer Cyclical
Sector Strength73
IndustryApparel - Retail
Share Statistics
EPS (TTM)1.04
Shares Outstanding92,660,800
10 Day Avg. Volume1,705,827
30 Day Avg. Volume2,452,036
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.93
Price to Sales (P/S)0.00
P/FCF Ratio10.34
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda2.56
Forecast
1Y Price Target
$58.63Price Target Upside-2.90% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Urban Outfitters Business Overview & Revenue Model
Company DescriptionUrban Outfitters, Inc. (URBN) is a leading global lifestyle retailer known for its eclectic and diverse range of products aimed at young adults. The company operates through several brands, including Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN, each offering a unique selection of apparel, accessories, home decor, and beauty products. With a focus on creating a compelling shopping experience, URBN combines contemporary fashion with a bohemian flair, catering to a fashion-conscious customer base.
How the Company Makes MoneyUrban Outfitters, Inc. generates revenue primarily through the sale of merchandise across its distinct retail brands: Urban Outfitters, Anthropologie, and Free People. The company operates a mix of physical retail stores and a robust e-commerce platform, allowing it to reach a wide consumer audience. Key revenue streams include direct-to-consumer sales via brick-and-mortar stores and online channels, wholesale operations where products are sold to third-party retailers, and subscription services offered under certain brands. URBN also benefits from strategic partnerships and collaborations with designers and influencers, enhancing brand visibility and appeal. The company's ability to capture market trends and maintain customer loyalty is crucial to its financial success.
Urban Outfitters Financial Statement Overview
Summary
Urban Outfitters presents a strong financial profile with consistent revenue growth, improved profitability, and solid cash flow generation. The company's balance sheet stability supports its operational performance, though attention to leverage and capital expenditures is advised.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| 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
Positive
60.38
Price Trends
51.39
Positive
53.65
Positive
46.73
Positive
Market Momentum
1.81
Negative
70.51
Negative
94.01
Negative
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 60.38 is above the 20-day moving average (MA) of 52.58, above the 50-day MA of 51.39, and above the 200-day MA of 46.73, indicating a bullish trend. The MACD of 1.81 indicates Negative momentum. The RSI at 70.51 is Negative, neither overbought nor oversold. The STOCH value of 94.01 is Negative, 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 24 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.31B | 13.92 | 17.56% | ― | 7.71% | 40.01% | |
74 Outperform | $4.13B | 23.71 | 17.27% | ― | 8.31% | 3.96% | |
73 Outperform | $9.34B | 11.28 | 28.81% | 2.42% | 1.32% | 65.83% | |
73 Outperform | $2.08B | 7.20 | 18.80% | 3.93% | 1.27% | 96.32% | |
70 Outperform | $2.01B | 10.11 | 46.71% | 3.56% | -3.44% | -11.74% | |
64 Neutral | $3.72B | 7.61 | 47.77% | ― | 15.60% | 71.45% | |
61 Neutral | $7.00B | 11.55 | 3.07% | 3.89% | 2.60% | -21.53% |
* Consumer Cyclical Sector Average
Performance Comparison
URBN
Urban Outfitters
60.38
18.82
45.28%
ANF
Abercrombie Fitch
80.33
-57.35
-41.65%
AEO
American Eagle
11.90
-11.53
-49.21%
BKE
Buckle
39.83
5.31
15.38%
GAP
Gap Inc
26.23
4.93
23.15%
BOOT
Boot Barn
132.84
22.86
20.79%
Urban Outfitters Earnings Call Summary
Earnings Call Date:Feb 26, 2025
(Q4-2025)
| % Change Since: 14.10%|
Next Earnings Date:May 21, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong financial performance with record sales and profits, driven by outstanding results from Anthropologie, Free People, and Nuuly. However, challenges remain for the Urban Outfitters brand in North America. The outlook for fiscal 2026 is optimistic with expectations for continued growth.Q4-2025 Updates
Positive Updates
Record Fourth-Quarter Sales and Full-Year Profits
Urban Outfitters, Inc. announced record fourth-quarter sales of $1.6 billion, a 9% increase, and full-year profits surpassing expectations.
Strong Performance by Anthropologie and Free People
Anthropologie achieved an 8% Retail segment comp and its ninth straight quarter of double-digit operating income growth. Free People saw total retail and wholesale segment sales increase by 13%, with a notable 27% increase in Wholesale segment revenues.
Nuuly's Exceptional Growth
Nuuly delivered robust growth with a 56% increase in brand revenue and achieved its first full year of profitability, with a $13 million operating profit.
Gross Profit and Operating Income Increase
URBN saw a 17% increase in gross profit dollars, reaching a record $528 million, and a 54% rise in total operating income compared to last year.
Positive Outlook for Fiscal 2026
URBN projects mid-single-digit sales growth for the first quarter and full year of fiscal 2026, driven by strong performance in the Free People and Anthropologie brands and continued growth in Nuuly.
Negative Updates
Urban Outfitters Brand Challenges
Urban Outfitters recorded a 3% decline in the Retail segment comp for the quarter, with a high single-digit negative comp in North America.
Slightly Elevated Inventory Levels
URBN ended FY25 with slightly elevated inventory levels due to intentional early product arrivals to avoid potential East Coast port strikes.
Company Guidance
During Urban Outfitters, Inc.'s Fourth Quarter Fiscal 2025 earnings call, the company reported a record $1.6 billion in sales, marking a 9% year-over-year increase. Gross profit surged by 17% to $528 million with a gross profit rate improvement of over 200 basis points to 32.3%. The Retail segment saw a 5% comp increase, propelled by high single-digit growth in the DTC channel and low single-digit growth in store comps. Notably, Nuuly's revenue soared with a 53% rise in average active subscribers, while Free People’s Wholesale revenues climbed 27%. The company announced plans to open 58 new stores in fiscal 2026, focusing on the FP Movement, Free People, and Anthropologie brands. Operating income increased by 54% to $125 million, and net income rose by 49% to $98 million, or $1.04 per diluted share. For fiscal 2026, Urban Outfitters anticipates mid-single-digit sales growth, underpinned by retail segment comps at Free People and Anthropologie, with Nuuly expected to deliver double-digit revenue growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.