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Urban Outfitters (URBN)
:URBN
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Urban Outfitters
(NASDAQ:URBN)80Outperform
Positive Factors
Earnings
Urban Outfitters delivered its fourth consecutive EPS beat, driven by reduced markdown activity and ongoing IMU improvement.
Growth Opportunities
New store openings at FP Movement drove 13% total sales growth at Free People, with further impact expected on future sales.
Negative Factors
Digital Sales
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, attributed to an intentional pull forward of receipts.
Management Challenges
High management turnover and overly complex management structure are key drivers of recent underperformance for Urban Outfitters.
Urban Outfitters (URBN) vs. S&P 500 (SPY)
Market Cap
$5.24B
Dividend YieldN/A
Average Volume (3M)1.86M
Price to Earnings (P/E)13.4
Beta (1Y)0.86
Revenue Growth7.71%
EPS Growth40.01%
CountryUS
Employees28,000
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)4.27
Shares Outstanding92,277,115
10 Day Avg. Volume2,639,478
30 Day Avg. Volume1,862,304
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)N/A
Price to Sales (P/S)0.97
Price to Cash Flow (P/CF)70.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.55Price Target Upside5.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Urban Outfitters Business Overview & Revenue Model
Company DescriptionUrban 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 Retail, and Wholesale segments. The Retail segment contains the Anthropologie, Bhldn, Free People, Terrain, and Urban Outfitters brands; and its Food and Beverage division. The Wholesale segment designs, develops, and markets apparel, intimates, active wear, and home goods under the Free People, Anthropologie, and Urban Outfitters brands. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at Philadelphia, PA.
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 demonstrates strong financial performance with robust revenue growth, profitability, and cash flow metrics. The income statement shows impressive TTM growth and margins. The balance sheet is stable with manageable leverage, though attention to debt levels is advised. Cash flow is healthy, highlighting operational resilience.Income Statement
Urban Outfitters has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) growth rate compared to previous years. The gross profit margin is robust at 34.23%, and net profit margin has improved to 6.11%, indicating efficient cost management. EBIT and EBITDA margins also show positive profitability trends. However, the retail sector's discretionary nature poses potential volatility risks.85
Very Positive
Balance Sheet
The company's balance sheet reflects a solid equity base with a decent equity ratio of 52.46%, suggesting financial stability. The debt-to-equity ratio is manageable at 0.47, indicating prudent leverage despite the presence of significant liabilities. Return on equity stands at 14.02%, showcasing effective use of shareholder funds. However, high total debt remains a point of caution.78
Positive
Cash Flow
Urban Outfitters' cash flow situation is healthy, with a notable operating cash flow to net income ratio of 1.25, highlighting strong cash generation. Free cash flow has grown significantly, and the free cash flow to net income ratio of 1.10 indicates efficient cash conversion. The positive trajectory in cash flow metrics underscores operational resilience.81
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.40B | 5.15B | 4.80B | 4.55B | 3.45B | 3.98B | Gross Profit |
| 1.85B | 1.73B | 1.43B | 1.49B | 861.91M | 1.24B | EBIT |
| 427.27M | 388.07M | 226.62M | 408.57M | 3.97M | 147.49M | EBITDA |
| 541.58M | 496.09M | 514.28M | 697.83M | 307.78M | 541.92M | Net Income Common Stockholders |
| 329.91M | 287.67M | 159.70M | 310.62M | 1.24M | 168.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 455.41M | 465.06M | 382.64M | 446.00M | 570.33M | 433.29M | Total Assets |
| 4.11B | 4.11B | 3.68B | 3.79B | 3.55B | 3.29B | Total Debt |
| 1.08B | 1.08B | 1.12B | 1.19B | 1.33B | 1.36B | Net Debt |
| 875.34M | 900.18M | 916.11M | 980.82M | 933.08M | 1.14B | Total Liabilities |
| 2.06B | 2.00B | 1.89B | 2.05B | 2.07B | 1.84B | Stockholders Equity |
| 2.05B | 2.11B | 1.79B | 1.75B | 1.48B | 1.46B |
| Cash Flow | Free Cash Flow | ||||
| 362.95M | 309.79M | -56.78M | 96.89M | 126.57M | 56.46M | Operating Cash Flow |
| 411.53M | 509.41M | 142.73M | 359.32M | 285.81M | 273.89M | Investing Cash Flow |
| -360.10M | -521.65M | -32.01M | -487.66M | -101.90M | -186.15M | Financing Cash Flow |
| -74.26M | -12.13M | -118.40M | -60.27M | -10.42M | -222.05M |
Urban Outfitters Technical Analysis
Positive
57.34
Price Trends
55.99
Positive
48.71
Positive
44.83
Positive
Market Momentum
0.44
Negative
54.60
Neutral
62.02
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 57.34 is above the 20-day moving average (MA) of 55.99, above the 50-day MA of 55.99, and above the 200-day MA of 44.83, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 62.02 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 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.24B | 13.44 | 17.56% | ― | 7.71% | 40.01% | |
78 Outperform | $136.85B | 28.58 | 61.98% | 1.23% | 3.95% | ― | |
74 Outperform | $4.84B | 8.64 | 50.86% | ― | 19.59% | 154.53% | |
73 Outperform | $44.86B | 21.40 | 40.28% | 1.08% | 8.54% | 25.99% | |
69 Neutral | $2.30B | 10.27 | 13.28% | 4.17% | 6.38% | 6.08% | |
67 Neutral | $4.00B | 13.94 | 29.58% | 3.13% | 3.57% | 120.60% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
URBN
Urban Outfitters
57.34
15.28
36.33%
ANF
Abercrombie Fitch
87.23
-47.76
-35.38%
AEO
American Eagle
12.12
-10.75
-47.00%
JWN
Nordstrom
24.36
7.45
44.06%
ROST
Ross Stores
138.64
-8.03
-5.47%
TJX
TJX Companies
123.04
27.92
29.35%
Urban Outfitters Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 8.35% | Next Earnings Date: May 27, 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.Highlights
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.
Lowlights
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.