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Urban Outfitters (URBN) AI Stock Analysis
Urban Outfitters
(NASDAQ:URBN)
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.
Urban Outfitters Key Performance Indicators (KPIs)
Revenue by BrandShows how much each brand under Urban Outfitters contributes to total sales, highlighting which brands are driving growth and which might need strategic adjustments.
Free People and Urban Outfitters are driving durable top‑line momentum with steady comp strength, while Anthropologie remains more volatile but trending higher—its slower quarters are normalizing. The standout is Nuuly, which has moved from a niche experiment to a high‑growth, margin‑accretive business that management now cites as a strategic growth engine. Beware near‑term margin noise: fuel surcharges and tariff volatility will pressure gross margins and a one‑time tariff refund will boost Q2, so focus on underlying retail comps and Nuuly’s subscriber/profit trajectory for sustainability.
Urban Outfitters (URBN) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $7.77B
- Dividend Yield
- ―
- Average Volume (3M)
- 1.10M
- Price to Earnings (P/E)
- 14.0
- Beta (1Y)
- 1.03
- Revenue Growth
- 11.01%
- EPS Growth
- 24.97%
- Country
- US
- Employees
- 31,000
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Apparel - Retail
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 the...
How the Company Makes Money
URBN makes money primarily by selling merchandise through its retail and digital channels across its brands (Urban Outfitters, Anthropologie, and Free People). The core revenue model is retail commerce: the company purchases and/or produces inventory...
Urban Outfitters Earnings Call Summary
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.
Q2-2027 Updates
Positive Updates
Negative 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
Strong profitability and multi-year margin expansion (TTM gross margin ~36%, EBIT margin ~9.6%, ROE ~17.6%) support a high score. Offsetting factors are decelerating TTM revenue growth, moderate leverage with sizable absolute debt (~$1.21B), and mixed/volatile cash conversion (TTM FCF ~$318M vs. OCF ~$716M; FCF only ~half of net income).
Income Statement
82Very PositiveBalance Sheet
74PositiveCash Flow
66Positive| 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 | 851.12M | 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 | 295.21M | 315.02M | 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
Price Trends
Market Momentum
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 90.72 is above the 20-day moving average (MA) of 86.02, above the 50-day MA of 80.86, and above the 200-day MA of 73.09, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 71.55 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 26 risk factors in its most recent earnings report. Urban Outfitters reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
1 New RiskUrban Outfitters Peers Comparison
Overall Rating
ANF81Outperform
URBN79Outperform
AEO72Outperform
GAP69Neutral
BKE61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 81Outperform | $6.98B | 13.85 | 39.59% | ― | 4.73% | 8.69% | |
| 79Outperform | $7.77B | 13.96 | 20.72% | ― | 11.01% | 24.97% | |
| 72Outperform | $3.29B | 9.80 | 20.04% | 2.55% | 8.21% | 89.24% | |
| 69Neutral | $7.84B | 6.53 | 33.13% | 3.09% | 1.05% | 44.82% | |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| 61Neutral | $2.39B | 10.59 | 46.91% | 9.49% | 6.22% | 8.74% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| URBN | Urban Outfitters | 90.72 | 28.71 | 46.30% | |
| ANF | Abercrombie & Fitch Company | 164.44 | 94.29 | 134.41% | |
| AEO | American Eagle Outfitters | 19.61 | 3.50 | 21.73% | |
| BKE | The Buckle Inc. | 46.38 | -4.26 | -8.41% | |
| GAP | Gap, Inc. | 22.32 | 0.18 | 0.82% |
Urban Outfitters Corporate Events
Urban Outfitters Reports Record Quarterly Sales and Profits
PositiveUrban 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 the q...
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.
Date of analysis: Aug 27, 2026