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URBN Trading 11% Below 52-Week High: An Opportunity for Investors?
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Urban Outfitters Inc. (URBN - Free Report) shares are currently trading 10.6% below its 52-week high of $61.16 attained on March 3, 2025, making investors contemplate their next moves. In the past six months, URBN stock has gained 55.3% against the Zacks Retail-Apparel and Shoes industry’s 4.3% decline.
The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 9.1% and 3.8%, respectively, during the same period.
URBN Stock Past Six-Month Performance
Image Source: Zacks Investment Research
This distinguished global fashion entity closed yesterday’s trading session at $54.65. The stock is trading above both its 100 and 200-day simple moving averages of $49.25 and $45.02, respectively, highlighting a continued uptrend.
URBN Trades Above 100 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Key Factors Driving Urban Outfitters' Growth
Urban Outfitters delivered a strong financial performance in the fourth quarter of fiscal 2025, reinforcing its market position. The company saw impressive sales and earnings growth, driven by strategic marketing, customer acquisition and operational efficiency. Increased brand awareness and optimized cost management contributed to profitability.
Total company sales increased 10.1% year over year, reaching a record $1.64 billion. This growth was supported by strong performances across the Retail, Subscription and Wholesale segments, with four out of the company’s five brands delivering notable sales increases.
URBN’s Strong Retail and Wholesale Segment
Urban Outfitters’ Retail segment showcased strong growth in the fiscal fourth quarter, with significant increases in both total net sales and comparable store sales. Anthropologie led this momentum, driven by a surge in digital sales and steady growth in store sales. The brand performed well across all categories, particularly in apparel, and saw positive performance in its Home category. Free People also delivered strong results, supported by notable digital and in-store sales growth.
The FP Movement sub-brand within Free People continued its rapid expansion, recording substantial growth through increased customer demand and new store openings. Store expansion also contributed significantly to FP Movement’s success, as consumers increasingly embraced its activewear offerings.
The Wholesale segment also played a pivotal role in Urban Outfitters' overall growth. Free People Wholesale was a standout performer, driven by increased demand from specialty customers and department stores. The brand focused on maintaining full-price sales rather than relying on markdown-driven revenues. Moreover, FP Movement Wholesale saw exceptional growth, highlighting the company’s ability to strengthen its market reach and profitability through its Wholesale business.
Nuuly and Store Expansion Fueling URBN’s Future Growth
Nuuly, Urban Outfitters’ rental subscription service, continued its strong growth trajectory, achieving profitability for the first time. In the fourth quarter, this segment saw a remarkable 78.4% increase in net sales, with Subscription segment sales rising 55.6% compared with the previous year. This growth was primarily fueled by a 53.5% increase in active subscribers, reaching 300,000 by the end of the quarter. Its success highlights strong demand for fashion rental services, with continued expansion expected in the coming years.
Urban Outfitters pursued aggressive store expansion, adding new locations for Free People, FP Movement and Anthropologie. Free People opened seven new locations, while its FP Movement sub-brand expanded with 25 new stores, significantly contributing to its total growth.
Also, the company optimized its store portfolio by closing underperforming locations and shifting toward smaller-format stores to improve efficiency. With ambitious expansion plans for fiscal 2026, Urban Outfitters aims to strengthen its position in the growing activewear and lifestyle markets.
Positive Outlook & Sustained Momentum for URBN
Urban Outfitters' strong fourth-quarter performance paves the way for continued growth in fiscal 2026. The company projects mid-single-digit total sales growth for both the first quarter and the full fiscal year, driven by low single-digit retail segment comps. Free People is expected to see low to mid-single-digit positive comps, while Anthropologie anticipates mid-single-digit growth.
Nuuly is set for double-digit revenue growth, supported by a rising subscriber base. The wholesale segment is forecasted to grow mid-single digits for the year, with low double-digit revenue growth projected in the first quarter. The gross margin is expected to improve 50-100 basis points, aided by lower markdowns, especially at Urban Outfitters, along with efficiencies in occupancy and delivery expenses.
Is Urban Outfitters a Value Play Stock?
The company is currently trading at a notably low price-to-sales (P/S) multiple, below the averages of both the industry and the sector. With a forward 12-month P/S of 0.85, URBN is priced lower than the industry average of 1.50 and the sector average of 1.54. This undervaluation highlights its potential for investors seeking attractive entry points. URBN's Value Score of A emphasizes its investment appeal.
URBN Looks Attractive From a Valuation Standpoint
Image Source: Zacks Investment Research
Here's How Estimates Stack Up for URBN
The positive sentiment surrounding Urban Outfitters is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 30 days, analysts have increased their estimates for the current quarter, resulting in an upward revision of three cents to 80 cents per share. The consensus estimate for earnings for the next quarter has also advanced by two cents to $1.35 per share. This indicates year-over-year growth of 15.9% and 8.9%, respectively.
The Zacks Consensus Estimate for the current and next quarter’s sales is pegged at $1.28 billion and $1.44 billion, respectively, implying year-over-year growth of 6.5% and 6.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Thought on Urban Outfitters
URBN presents a strong investment case with its solid financial performance, operational efficiency and strategic growth initiatives. The company continues to outperform industry trends, driven by brand strength, digital expansion and store growth. Its diversified revenue streams, including retail, wholesale and an expanding subscription service, position it for long-term success. Improving margins and disciplined cost management further enhance profitability. With an attractive valuation compared with peers, URBN offers a compelling opportunity for investors seeking growth and stability. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks are Boot Barn Holdings, Inc. (BOOT - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) and lululemon athletica inc. (LULU - Free Report) .
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and revenues indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 at present. LULU delivered a 6.7% earnings surprise in the last reported quarter.
The consensus estimate for lululemon’s fiscal 2025 earnings and revenues indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
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URBN Trading 11% Below 52-Week High: An Opportunity for Investors?
Urban Outfitters Inc. (URBN - Free Report) shares are currently trading 10.6% below its 52-week high of $61.16 attained on March 3, 2025, making investors contemplate their next moves. In the past six months, URBN stock has gained 55.3% against the Zacks Retail-Apparel and Shoes industry’s 4.3% decline.
The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 9.1% and 3.8%, respectively, during the same period.
URBN Stock Past Six-Month Performance
Image Source: Zacks Investment Research
This distinguished global fashion entity closed yesterday’s trading session at $54.65. The stock is trading above both its 100 and 200-day simple moving averages of $49.25 and $45.02, respectively, highlighting a continued uptrend.
URBN Trades Above 100 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Key Factors Driving Urban Outfitters' Growth
Urban Outfitters delivered a strong financial performance in the fourth quarter of fiscal 2025, reinforcing its market position. The company saw impressive sales and earnings growth, driven by strategic marketing, customer acquisition and operational efficiency. Increased brand awareness and optimized cost management contributed to profitability.
Total company sales increased 10.1% year over year, reaching a record $1.64 billion. This growth was supported by strong performances across the Retail, Subscription and Wholesale segments, with four out of the company’s five brands delivering notable sales increases.
URBN’s Strong Retail and Wholesale Segment
Urban Outfitters’ Retail segment showcased strong growth in the fiscal fourth quarter, with significant increases in both total net sales and comparable store sales. Anthropologie led this momentum, driven by a surge in digital sales and steady growth in store sales. The brand performed well across all categories, particularly in apparel, and saw positive performance in its Home category. Free People also delivered strong results, supported by notable digital and in-store sales growth.
The FP Movement sub-brand within Free People continued its rapid expansion, recording substantial growth through increased customer demand and new store openings. Store expansion also contributed significantly to FP Movement’s success, as consumers increasingly embraced its activewear offerings.
The Wholesale segment also played a pivotal role in Urban Outfitters' overall growth. Free People Wholesale was a standout performer, driven by increased demand from specialty customers and department stores. The brand focused on maintaining full-price sales rather than relying on markdown-driven revenues. Moreover, FP Movement Wholesale saw exceptional growth, highlighting the company’s ability to strengthen its market reach and profitability through its Wholesale business.
Nuuly and Store Expansion Fueling URBN’s Future Growth
Nuuly, Urban Outfitters’ rental subscription service, continued its strong growth trajectory, achieving profitability for the first time. In the fourth quarter, this segment saw a remarkable 78.4% increase in net sales, with Subscription segment sales rising 55.6% compared with the previous year. This growth was primarily fueled by a 53.5% increase in active subscribers, reaching 300,000 by the end of the quarter. Its success highlights strong demand for fashion rental services, with continued expansion expected in the coming years.
Urban Outfitters pursued aggressive store expansion, adding new locations for Free People, FP Movement and Anthropologie. Free People opened seven new locations, while its FP Movement sub-brand expanded with 25 new stores, significantly contributing to its total growth.
Also, the company optimized its store portfolio by closing underperforming locations and shifting toward smaller-format stores to improve efficiency. With ambitious expansion plans for fiscal 2026, Urban Outfitters aims to strengthen its position in the growing activewear and lifestyle markets.
Positive Outlook & Sustained Momentum for URBN
Urban Outfitters' strong fourth-quarter performance paves the way for continued growth in fiscal 2026. The company projects mid-single-digit total sales growth for both the first quarter and the full fiscal year, driven by low single-digit retail segment comps. Free People is expected to see low to mid-single-digit positive comps, while Anthropologie anticipates mid-single-digit growth.
Nuuly is set for double-digit revenue growth, supported by a rising subscriber base. The wholesale segment is forecasted to grow mid-single digits for the year, with low double-digit revenue growth projected in the first quarter. The gross margin is expected to improve 50-100 basis points, aided by lower markdowns, especially at Urban Outfitters, along with efficiencies in occupancy and delivery expenses.
Is Urban Outfitters a Value Play Stock?
The company is currently trading at a notably low price-to-sales (P/S) multiple, below the averages of both the industry and the sector. With a forward 12-month P/S of 0.85, URBN is priced lower than the industry average of 1.50 and the sector average of 1.54. This undervaluation highlights its potential for investors seeking attractive entry points. URBN's Value Score of A emphasizes its investment appeal.
URBN Looks Attractive From a Valuation Standpoint
Image Source: Zacks Investment Research
Here's How Estimates Stack Up for URBN
The positive sentiment surrounding Urban Outfitters is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 30 days, analysts have increased their estimates for the current quarter, resulting in an upward revision of three cents to 80 cents per share. The consensus estimate for earnings for the next quarter has also advanced by two cents to $1.35 per share. This indicates year-over-year growth of 15.9% and 8.9%, respectively.
The Zacks Consensus Estimate for the current and next quarter’s sales is pegged at $1.28 billion and $1.44 billion, respectively, implying year-over-year growth of 6.5% and 6.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Thought on Urban Outfitters
URBN presents a strong investment case with its solid financial performance, operational efficiency and strategic growth initiatives. The company continues to outperform industry trends, driven by brand strength, digital expansion and store growth. Its diversified revenue streams, including retail, wholesale and an expanding subscription service, position it for long-term success. Improving margins and disciplined cost management further enhance profitability. With an attractive valuation compared with peers, URBN offers a compelling opportunity for investors seeking growth and stability. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks are Boot Barn Holdings, Inc. (BOOT - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) and lululemon athletica inc. (LULU - Free Report) .
Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and revenues indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It has a Zacks Rank of 2 at present. LULU delivered a 6.7% earnings surprise in the last reported quarter.
The consensus estimate for lululemon’s fiscal 2025 earnings and revenues indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.