Download PDF

1. Company Snapshot

1.a. Company Description

Urban Outfitters, Inc.engages in the retail and wholesale of general consumer products.The company operates through three segments: Retail, Wholesale, and Nully.


It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's casual apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45.The company also operates Bhldn stores, which offer heirloom quality wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations; and Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories.In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; restaurants; and women's apparel subscription rental service under the Nuuly brand name.


The company serves its customers directly through retail stores, Websites, mobile applications, catalogs and customer contact centers, franchised or third-party operated stores, and digital businesses.As of January 31, 2022, it operated 261 Urban Outfitters, 238 Anthropologie Group, and 173 Free People stores in the United States, Canada, and Europe; and 10 restaurants, as well as two Urban Outfitters and one Anthropologie franchisee-owned stores.The company is also involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and home goods through department and specialty stores worldwide.


The company was founded in 1970 and is based in Philadelphia, Pennsylvania.

Show Full description

1.b. Last Insights on URBN

Urban Outfitters' recent performance was negatively impacted by its Q4 earnings release, which revealed a significant shortfall in expectations despite a 10% sales growth and 37% EPS jump. The company's impressive operating margins expansion and double-digit sales growth were overshadowed by cautious guidance. Analysts have a "Moderate Buy" rating on the stock, with some citing its debt-free balance sheet and growing brands. (Source: MarketBeat Ratings) Additionally, the company's Nuuly subscription service showed strong revenue growth, up 42%.

1.c. Company Highlights

2. Urban Outfitters Delivers Exceptional Q4 Results

Urban Outfitters' fourth quarter fiscal '26 results exceeded expectations, with total revenue growing by 10% to $1.8 billion. Adjusted earnings per share jumped 38% for the quarter and 35% for the full year, driven by strong performances across its retail segment brands. The company's actual EPS came out at $1.43, beating estimates of $1.24. The gross profit margin came in better than expected, largely due to lower markdown rates at Urban Outfitters and Free People.

Publication Date: Mar -03

📋 Highlights
  • Revenue & EPS Growth:: Q4 revenue rose 10% to $1.8B; adjusted EPS jumped 38% quarterly and 35% annually.
  • Nuuly Expansion:: Revenue grew 43%, with 40% higher average active subscribers and $21M profit increase.
  • Brand Performance:: Anthropologie achieved 5-year positive comps (4% Q4 growth); Free People and Urban Outfitters delivered 10% revenue increases.
  • FY '27 Guidance:: Targets high single-digit sales growth, 25 bps gross margin expansion, and $385M in capex for stores/logistics/tech.
  • Strategic Investments:: SG&A to grow faster than sales initially due to AI/tech spending; $57M net new store openings planned.

Segment Performance

All of URBN's retail segment brands delivered positive comps, with four out of five brands posting record fourth quarter sales. Anthropologie delivered a 4% increase in retail segment comp, driven by strength in its own brands, such as Maeve and Pilcro. Free People achieved a retail segment comp of over 5% and strong gains in the Wholesale segment, driven by the continued strength of FP Movement. Urban Outfitters continued its positive momentum with a global Retail segment comp of 10%, driven by healthy sales comps in North America and Europe.

Nuuly's Strong Growth

Nuuly delivered another exceptional performance, with total revenue growing by 43% and a 40% increase in average active subscribers. The brand surpassed its goal of $500 million in annual revenue and increased its total profitability by over $21 million. Management is confident in Nuuly's continued growth potential, citing a significant awareness gap in the market.

Guidance and Outlook

For fiscal year '27, URBN expects positive high single-digit total company sales growth, driven by mid-single-digit Retail segment comp and mid-double-digit revenue growth at Nuuly. The company is planning for a 25 basis point gross margin expansion, with some SG&A margin pressure. The effective tax rate is expected to be approximately 22% for the year.

Valuation

With a P/E Ratio of 12.67 and an EV/EBITDA of 10.86, URBN's valuation appears reasonable, considering its strong growth prospects. The company's ROE of 17.66% and ROIC of 11.5% indicate a strong ability to generate returns on equity and invested capital. Analysts estimate next year's revenue growth at 8.6%, which is in line with the company's guidance.

3. NewsRoom

Card image cap

An Urban Outfitters Co-President Sold Over 11,000 Company Shares. Is the Stock a Buy or Sell?

Mar -09

Source: fool.com

Card image cap

Urban Outfitters, Inc. (URBN) Q4 2026 Earnings Call Transcript

Feb -28

Source: seekingalpha.com

Card image cap

Urban Outfitters: A Company Worth Owning In The Consumer Discretionary Sector

Feb -27

Source: seekingalpha.com

Card image cap

Dakota Wealth Management Takes Position in Urban Outfitters, Inc. $URBN

Feb -27

Source: defenseworld.net

Card image cap

Urban Outfitters: Ideal Specialty Retailer With Upside

Feb -26

Source: seekingalpha.com

Card image cap

URBN Q4 Earnings & Sales Beat Estimates on Strong Brand Momentum

Feb -26

Source: zacks.com

Card image cap

Urban Outfitters (URBN) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -26

Source: zacks.com

Card image cap

Urban Outfitters Reports Q4 2026 Earnings: What You Need to Know

Feb -26

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.93%)

6. Segments

Retail

Expected Growth: 7%

Urban Outfitters' 7% retail growth is driven by effective omnichannel strategies, strong brand recognition, and a focus on experiential retail. The company's ability to adapt to changing consumer preferences, invest in digital marketing, and optimize store layouts have also contributed to its growth. Additionally, the company's focus on sustainability and social responsibility resonates with its target demographic, further driving sales.

Wholesale

Expected Growth: 5%

Urban Outfitters' wholesale segment growth is driven by increasing demand for its Anthropologie and Free People brands, expansion into new international markets, and strategic partnerships with prominent retailers. Additionally, the company's focus on digital marketing and e-commerce optimization has contributed to the 5% growth rate.

Nuuly

Expected Growth: 8%

Nuuly's 8% growth driven by increasing demand for clothing rental services, particularly among Gen Z and millennials seeking sustainable fashion. Strong brand recognition, convenient subscription model, and frequent new arrivals also contribute to growth. Additionally, Urban Outfitters' existing customer base and infrastructure provide a solid foundation for Nuuly's expansion.

Intersegment Elimination

Expected Growth: 0%

Urban Outfitters, Inc.'s Intersegment Elimination with 0% growth is driven by the absence of significant transactions between segments, stable organizational structure, and consistent accounting practices, resulting in minimal eliminations. This suggests a well-integrated business model with no material intercompany activities.

7. Detailed Products

Women's Apparel

Urban Outfitters offers a wide range of trendy and fashion-forward clothing for women, including tops, dresses, pants, and outerwear.

Men's Apparel

Urban Outfitters provides a curated selection of stylish and modern clothing for men, including graphic tees, denim, and statement pieces.

Beauty and Wellness

Urban Outfitters offers a variety of beauty and wellness products, including skincare, haircare, and fragrances from popular brands.

Home and Accessories

Urban Outfitters sells a range of home decor and accessories, including bedding, kitchenware, and decorative items.

Gifts and Novelties

Urban Outfitters offers a selection of fun and quirky gifts, including stationery, accessories, and novelty items.

Vintage and Second-Hand

Urban Outfitters sells a curated selection of vintage and second-hand clothing and accessories.

8. Urban Outfitters, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Urban Outfitters, Inc. faces moderate threat from substitutes due to the presence of online retailers and fast-fashion brands offering similar products.

Bargaining Power Of Customers

Urban Outfitters, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand image and unique products limit customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Urban Outfitters, Inc. relies on a diverse supplier base, which reduces dependence on individual suppliers. However, the company's reliance on a few large suppliers for certain products gives them some bargaining power.

Threat Of New Entrants

The fashion retail industry has high barriers to entry, including significant capital requirements, established brand recognition, and complex supply chains. This limits the threat of new entrants to Urban Outfitters, Inc.

Intensity Of Rivalry

The fashion retail industry is highly competitive, with many established players competing for market share. Urban Outfitters, Inc. faces intense rivalry from companies like H&M, Zara, and Gap Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.80%
Debt Cost 3.95%
Equity Weight 66.20%
Equity Cost 11.68%
WACC 9.07%
Leverage 51.05%

11. Quality Control: Urban Outfitters, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Gap

A-Score: 5.1/10

Value: 6.3

Growth: 4.6

Quality: 5.1

Yield: 7.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Urban Outfitters

A-Score: 5.0/10

Value: 5.4

Growth: 6.8

Quality: 6.1

Yield: 0.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Boot Barn

A-Score: 4.8/10

Value: 2.3

Growth: 7.9

Quality: 6.0

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
American Eagle Outfitters

A-Score: 4.2/10

Value: 4.7

Growth: 4.4

Quality: 4.4

Yield: 5.0

Momentum: 4.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Burlington Stores

A-Score: 4.1/10

Value: 3.0

Growth: 5.9

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Abercrombie & Fitch

A-Score: 4.0/10

Value: 5.9

Growth: 8.3

Quality: 6.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.41$

Current Price

63.41$

Potential

-0.00%

Expected Cash-Flows