Key Takeaways Nuuly's Q2 fiscal 2027 revenues rose 29% to $179M as average active subscribers climbed 30% to 484,000.Adjusted Subscription operating income jumped 44% to $18M, with margin expanding 106 bps to 10.1%.Management sees high-20% Nuuly revenue growth in Q3 and fiscal 2027, with full-year sales above $700M. Nuuly is emerging as a profitable growth engine for Urban Outfitters Inc. (URBN - Free Report) , supported by subscriber expansion, a broader assortment and improving operating efficiency. Investments in personalization, fit guidance and fulfillment are strengthening the rental experience, while additional capacity and automation are establishing a foundation for continued growth.
The second quarter of fiscal 2027 results reinforce the view. Nuuly’s revenues increased 29% year over year to $179 million as average active subscribers rose 30% to 484,000, an increase of 113,000. Active subscribers exceeded 500,000 in early June before easing with the business’ typical summer seasonality.
Scale is translating into stronger economics. Adjusted Subscription segment operating income increased 44% to $18 million, while the adjusted operating margin expanded 106 basis points to 10.1%. Adjusted gross profit rose 32% to $53 million and the margin improved 83 basis points to 29.4%, mainly reflecting leverage in logistics expenses.
Nuuly’s assortment grew 35% to nearly 33,000 choices. Nike began rolling out in August, while J.Crew is scheduled to debut in October. Enhanced recommendations and customized fit guidance have improved satisfaction metrics, while delivery upgrades add convenience. Planned automation should generate logistics savings. Once the East Coast expansion is complete, Nuuly’s network should support roughly 1.2 million subscribers.
Management projects high-20% Nuuly revenue growth for the third quarter and fiscal 2027, with full-year revenues exceeding $700 million and a high-single-digit operating margin. Although margins should ease seasonally during the second half, continued subscriber momentum and fulfillment efficiencies support the outlook. A program extension planned for the first half of next year could provide another catalyst by increasing revenue per user.
URBN’s Price Performance, Valuation & EstimatesShares of Urban Outfitters have gained 20.6% over the past six months against the industry’s 10.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, URBN trades at a trailing price-to-sales ratio of 1.06, below the industry’s average of 1.35. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2027 earnings implies year-over-year growth of 13.2%, while the same for fiscal 2028 indicates an uptick of 12.4%. Estimates for fiscal 2027 and 2028 have been revised upward by 8 cents and 18 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Urban Outfitters currently carries a Zacks Rank #2 (Buy).
Other Key Picks in RetailFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%.
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Primed to grow right now with long-term potential gains of 2X and more.
Primed to grow right now with long-term potential gains of 2X and more.
This oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increase 241.2% over the last 60 days.
This oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increase 241.2% over the last 60 days.
SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.
SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.
The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.
The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.
Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.
Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.
Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.
Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.
Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.
Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.
Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.
Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.
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Symbol Time Expected Reported %Surprise CURV 16:06 -0.03 -0.04 -33.33 VBNK 07:04 0.34 0.27 -20.59 LE 06:46 0.10 0.09 -10.00 CPB 07:15 0.40 0.39 -2.50 EPS Negative Surprises for Sep 04, 2026
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Key Takeaways DTC sales advanced 13% to $352.8 million, far ahead of the 2.2% increase in wholesale sales.HOKA drove DTC growth as revenues climbed 17.3%, supported by international and broader product demand.Faster DTC growth helped lift gross margin 60 basis points to 56.4% despite incremental tariff pressure. Deckers Outdoor Corporation (DECK - Free Report) direct-to-consumer (DTC) business emerged as a key growth driver in the first quarter of fiscal 2027. DTC net sales increased 13% year over year to $352.8 million, outpacing 2.2% wholesale growth. Comparable DTC sales rose 6.8% on a constant-currency basis, underscoring healthy demand across established operations.
HOKA was the primary contributor to DTC momentum, with channel revenues increasing 17.3% to $256.8 million. International regions delivered robust growth, while the United States maintained positive momentum. Demand extended beyond Clifton and Bondi, with Speedgoat 7, Mach 7, Mafate Speed 2 and Skyward products collectively contributing more than half of global HOKA DTC growth.
UGG supported channel expansion, with DTC revenues rising 5.7% to $83.8 million. Its mono-brand retail presence was particularly effective in Asia, encouraging consumer adoption across new categories. Investments in fashion casual footwear, sneakers and sandals, alongside year-round and men’s initiatives, are broadening the brand’s appeal and deepening consumer engagement.
Deckers’ DTC strength supported gross margin expansion through a favorable channel mix. Gross margin increased 60 basis points to 56.4%, reflecting faster DTC growth, favorable product mix, full-price selling, currency benefits and improved closeout management, partially offset by incremental tariffs. Product innovation and targeted marketing investments are helping sustain demand across both flagship brands.
Management expects significant DTC growth to continue in fiscal 2027. Consolidated revenues are projected at $5.86-$5.91 billion, with total HOKA revenues growing at a low-double-digit rate and UGG revenues at a mid-single-digit rate. Broader product adoption and international momentum position DTC as an important contributor to Deckers’ growth and premium brand development. We expect total DTC sales to increase 9.3% in fiscal 2027.
DECK’s Price Performance, Valuation & EstimatesShares of Deckers have lost 23.1% over the past three months compared with the industry’s 10.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, DECK trades at a trailing price-to-sales ratio of 2.10, up from the industry’s average of 1.34. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers’ fiscal 2027 earnings implies year-over-year growth of 6.8%, whereas the same for fiscal 2028 indicates an uptick of 10.9%. The estimates for fiscal 2027 and 2028 have been unchanged and revised upward by 1 cent, respectively, over the past 30 days.
Image Source: Zacks Investment Research
DECK currently carries a Zacks Rank #3 (Hold).
Key PicksFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 13.1% and 9.1%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of URBN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Retail segment revenues climbed 8% to $1.39B, while comparable sales increased 6.2% year over year.FP Group led brand momentum with a 10% Retail comp gain, including 13% growth at FP Movement.Q3 Retail comps are forecast to rise mid-single digits, backed by fall demand and regular-price selling. Urban Outfitters Inc.’s (URBN - Free Report) Retail segment continues to serve as a growth driver, supported by demand across brands and selling channels. During the second quarter of fiscal 2027, Retail segment revenues increased 8% year over year to $1.39 billion. The strength across both North America and Europe helped total company revenues rise 10.4% to a record $1.66 billion.
Comparable Retail segment sales advanced 6.2%, reflecting customer engagement. Digital comps grew at a high-single-digit rate, while store comps increased in the mid-single digits. Management attributed the performance to compelling fashion assortments, positive traffic and marketing initiatives that strengthened customer acquisition and engagement across physical and digital platforms.
Brand performance demonstrated the segment's momentum. FP Group led with a 10% Retail comp increase, including gains of 9% at Free People and 13% at FP Movement. Urban Outfitters posted an 8.4% increase, aided by demand for denim, pants, lounge, novelties and shoes. Anthropologie delivered 3% comp growth, driven by apparel and accessories.
Strong Retail sales supported operating efficiency. Higher comparable-store revenues produced occupancy leverage, while delivery initiatives helped counter fuel surcharges. Adjusted gross profit rose 10.6% to $625.9 million and adjusted gross margin expanded four basis points to 37.7%. However, higher Anthropologie markdowns, tariffs and inbound freight costs partly offset these benefits.
Management expects Retail momentum to continue, forecasting mid-single-digit comparable growth for the third quarter. FP Group comps are projected to increase in the high-single digits, Urban Outfitters in the mid-single digits and Anthropologie in the low-to-mid-single digits. Encouraging fall-product demand and regular-price selling support the outlook. Disciplined inventory management and cost control remain essential amid freight pressures and uneven category trends.
URBN’s Price Performance, Valuation & EstimatesShares of Urban Outfitters have gained 23.4% over the past six months against the industry’s 15.9% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, URBN trades at a trailing price-to-sales ratio of 1.09X, below the industry’s average of 1.40X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2027 earnings implies year-over-year growth of 12.9%, while the same for fiscal 2028 indicates an uptick of 12%. Estimates for fiscal 2027 and 2028 have been revised upward by 6 cents and 12 cents, respectively, over the past seven days.
Image Source: Zacks Investment Research
Urban Outfitters currently carries a Zacks Rank #3 (Hold).
Key Picks in RetailFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
American Eagle Outfitters Inc. (AEO - Free Report) is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 13.21; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.06 to $6.14 per share. URBN also boasts an average earnings surprise of +9.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URBN should be on investors' short list.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Urban Outfitters (URBN - Free Report) is a stock many investors are watching right now. URBN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.05 right now. For comparison, its industry sports an average P/E of 13.19. Over the past year, URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80.
Another valuation metric that we should highlight is URBN's P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. URBN's current P/B looks attractive when compared to its industry's average P/B of 5.72. URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14, over the past year.
Finally, investors should note that URBN has a P/CF ratio of 10.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. URBN's P/CF compares to its industry's average P/CF of 12.73. Over the past 52 weeks, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Urban Outfitters is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, URBN feels like a great value stock at the moment.
Urban Outfitters (URBN - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Urban Outfitters basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Urban Outfitters, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Urban OutfittersThis clothing and accessories retailer is expected to earn $6.13 per share for the fiscal year ending January 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Urban Outfitters. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Urban Outfitters to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Urban Outfitters (URBN) or Ermenegildo Zegna N.V. (ZGN). But which of these two stocks presents investors with the better value opportunity right now?
Shares of Urban Outfitters (URBN +2.92%) charged sharply higher on Wednesday, surging as much as 8.5%. As of 2:46 p.m. ET, the stock was still up 8.4%.
The catalyst that drove the apparel retailer higher was robust results released by a competitor.
Image source: Getty Images.
Fashion cents Abercrombie & Fitch (ANF +1.83%) released the results for its fiscal 2026 second quarter (ended Aug. 1), and shareholders rejoiced. The company generated record second-quarter net sales that rose 5% to $1.3 billion, marking its 15 consecutive quarter of growth. The gains were broad-based, with net sales in the Americas up 5%, sales in Asia Pacific (APAC) up 19%, and sales in Europe, the Middle East, and Africa (EMEA) up 2%. It also marked the best-ever second quarter across brands, with Abercrombie brands up 8% and Hollister up 2%.
Strong sales growth also boosted profits as adjusted earnings per diluted share (EPS) rose 79% to $4.17. It's worth noting that the results got a $100 million benefit -- or EPS of $1.75 -- from tariff refunds. The Supreme Court recently ruled that tariffs imposed by the Trump administration using the International Emergency Economic Powers Act (IEEPA) were illegal, prompting the refunds. However, even excluding the impact of the tariff refund, Abercrombie surpassed expectations.
Management also raised the company's full-year outlook to 5% sales growth, up from its previous range of 3% to 5%. Abercrombie is also guiding for EPS of $13.35 at the midpoint of its guidance, representing year-over-year growth of 28%.
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So what does this have to do with Urban Outfitters? It's no secret that Abercrombie & Fitch and Urban Outfitters vie for the same young, fashion-conscious shoppers. Abercrombie's brand portfolio is more compact, with the aforementioned Abercrombie and Hollister brands leading the charge. Urban Outfitters has built a more diversified portfolio, which includes Urban Outfitters, Anthropologie, Free People, and FP Movement.
Investors are betting that Abercrombie's record results bode well for Urban Outfitters, which is scheduled to report its second-quarter results after the market close today.
We'll know soon enough.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Abercrombie & Fitch and Urban Outfitters. The Motley Fool has a disclosure policy.
PHILADELPHIA, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced net income of $240.7 million and earnings per diluted share of $2.78 for the three months ended July 31, 2026. For the six months ended July 31, 2026, net income was $356.4 million and earnings per diluted share were $4.06.
For the three months ended July 31, 2026, adjusted net income was $149.3 million and adjusted earnings per diluted share were $1.72. For the six months ended July 31, 2026, adjusted net income was $265.0 million and adjusted earnings per diluted share were $3.02. Adjusted net income and adjusted earnings per diluted share for the three and six months ended July 31, 2026, excludes one-time benefits related to refunds for tariffs previously paid under the International Emergency Economic Powers Act ("IEEPA"), associated interest income and a tax benefit related to the release of a valuation allowance against certain foreign net deferred tax assets. See “Reconciliation of Non-GAAP Financial Measures” included at the end of this release.
Total Company net sales for the three months ended July 31, 2026, increased 10.4% to a record $1.66 billion. Total Retail segment net sales increased 8.0%, with comparable Retail segment net sales increasing 6.2%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 10.0% at FP Group, 8.4% at Urban Outfitters and 3.0% at Anthropologie. Subscription segment net sales increased 28.6% primarily driven by a 30.4% increase in average active subscribers in the current quarter versus the prior year quarter. Wholesale segment net sales increased 18.6% driven by a 19.2% increase in FP Group wholesale sales due to an increase in sales to specialty customers and department stores.
For the six months ended July 31, 2026, total Company net sales increased 10.9% to a record $3.14 billion. Total Retail segment net sales increased 8.0%, with comparable Retail segment net sales increasing 6.0%. The increase in Retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in retail store sales. Comparable Retail segment net sales increased 9.9% at FP Group, 8.8% at Urban Outfitters and 2.5% at Anthropologie. Subscription segment net sales increased 31.4% primarily driven by a 31.8% increase in average active subscribers in the current period versus the prior year period. Wholesale segment net sales increased 21.7% driven by a 22.6% increase in FP Group wholesale sales primarily due to an increase in sales to specialty customers.
“We are pleased to report our highest adjusted profit quarter in Company history, marking our eighth consecutive quarter of record sales and profits. These results were driven by positive Retail segment ‘comps’ at every brand and continued double-digit growth in our Wholesale and Subscription segments,” said Richard A. Hayne, Chief Executive Officer. “Our customers continue to respond favorably to our fashion assortments. This gives us confidence in URBN's ongoing success,” finished Mr. Hayne.
Net sales by brand and segment for the three and six-month periods were as follows:
Three Months Ended Six Months Ended July 31, July 31, 2026 2025 2026 2025 Net sales by brand Anthropologie$634,535 $606,954 $1,223,608 $1,176,885 FP Group 478,053 415,014 889,772 768,126 Urban Outfitters 360,015 333,171 664,742 606,676 Nuuly 178,605 138,932 345,869 263,286 Menus & Venues 10,707 10,684 19,269 19,283 Total Company$1,661,915 $1,504,755 $3,143,260 $2,834,256 Net sales by segment Retail Segment$1,392,520 $1,289,269 $2,613,434 $2,419,779 Subscription Segment 178,605 138,932 345,869 263,286 Wholesale Segment 90,790 76,554 183,957 151,191 Total Company$1,661,915 $1,504,755 $3,143,260 $2,834,256 For the three months ended July 31, 2026, the gross profit rate increased by 580 basis points compared to the three months ended July 31, 2025, and gross profit dollars increased 27.4% to $721.6 million from $566.2 million. For the three months ended July 31, 2026, the adjusted gross profit rate increased by 4 basis points compared to the three months ended July 31, 2025, and adjusted gross profit dollars increased 10.6% to $625.9 million from $566.2 million. The increase in the adjusted gross profit rate was primarily due to leverage in store occupancy costs due to the increase in comparable Retail segment store net sales and leverage in delivery expense as a result of several company initiatives to offset fuel surcharges, partially offset by an increase in Retail segment markdowns driven by Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs. The increase in adjusted gross profit dollars was primarily due to higher net sales.
For the six months ended July 31, 2026, the gross profit rate increased by 299 basis points compared to the six months ended July 31, 2025, and gross profit dollars increased 19.8% to $1.26 billion from $1.06 billion. For the six months ended July 31, 2026, the adjusted gross profit rate decreased by 6 basis points compared to the six months ended July 31, 2025, and adjusted gross profit dollars increased 10.7% to $1.17 billion from $1.06 billion. The decrease in the adjusted gross profit rate was primarily due to an increase in Retail segment markdowns driven by Anthropologie and the impact of a prior year gain of $4.8 million, or 17 basis points, not repeated in the current year period, partially offset by leverage in store occupancy costs due to the increase in comparable Retail segment store net sales. The increase in adjusted gross profit dollars was primarily due to higher net sales.
As of July 31, 2026, total inventory increased by $82.3 million, or 11.8%, compared to total inventory as of July 31, 2025. Total Retail segment inventory increased 12.0% and Retail segment comparable inventory increased 8.4%. Wholesale segment inventory increased 10.0%. The increase in Retail segment inventory was due to the increase in net sales and timing of inventory receipts. The increase in Wholesale segment inventory was due to the increase in net sales.
For the three months ended July 31, 2026, selling, general and administrative expenses increased by $41.0 million, or 10.5%, compared to the three months ended July 31, 2025. Selling, general and administrative expenses were flat as a percentage of net sales compared to the three months ended July 31, 2025. The leverage in store payroll expenses due to the growth in Retail segment store net sales was offset by the deleverage in marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, along with increased artificial intelligence technology investments benefiting the Company's current and future operations. The dollar growth in selling, general and administrative expenses was primarily due to increased marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the growth in Retail segment store net sales.
For the six months ended July 31, 2026, selling, general and administrative expenses increased by $83.1 million, or 11.0%, compared to the six months ended July 31, 2025. Selling, general and administrative expenses deleveraged 4 basis points as a percentage of net sales compared to the six months ended July 31, 2025. The deleverage in selling, general and administrative expenses was primarily related to deleverage in marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, along with increased artificial intelligence technology investments benefiting the Company's current and future operations. This was partially offset by a discrete benefit of $6.9 million, or 22 basis points, in the current year period resulting from the reversal of a litigation accrual, as well as leverage in store payroll expenses due to the growth in Retail segment store net sales. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased net sales in the Retail and Subscription segments, increased store payroll expenses to support the growth in Retail segment store net sales and increased artificial intelligence technology investments benefiting the Company's current and future operations.
The Company’s effective tax rate for the three months ended July 31, 2026, was 19.4%, compared to 21.5% in the three months ended July 31, 2025. The Company's adjusted effective tax rate for the three months ended July 31, 2026, was 24.8%. The Company's effective tax rate for the six months ended July 31, 2026, was 19.8%, compared to 21.5% in the six months ended July 31, 2025. The Company's adjusted effective tax rate for the six months ended July 31, 2026, was 23.0%. The change in the adjusted effective tax rate for the three and six months ended July 31, 2026, was primarily attributable to the ratio of foreign taxable earnings to global taxable earnings.
Net income for the three months ended July 31, 2026, was $240.7 million and earnings per diluted share were $2.78. Adjusted net income for the three months ended July 31, 2026, was $149.3 million and adjusted earnings per diluted share were $1.72. Net income for the six months ended July 31, 2026, was $356.4 million and earnings per diluted share were $4.06. Adjusted net income for the six months ended July 31, 2026, was $265.0 million and adjusted earnings per diluted share were $3.02.
On June 4, 2019, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. During the six months ended July 31, 2026, the Company repurchased and subsequently retired 4.6 million shares for approximately $300 million. During the year ended January 31, 2026, the Company repurchased and subsequently retired 3.3 million shares for approximately $154 million. As of July 31, 2026, 10.0 million common shares were remaining under the program.
Store data for the six months ended July 31, 2026, was as follows:
January 31, July 31, 2026 Openings Closings 2026Anthropologie NA 234 3 1 236Anthropologie EU 20 1 — 21Total Anthropologie 254 4 1 257Free People NA 167 6 — 173FP Movement NA 88 10 1 97Free People EU 13 1 — 14Total FP Group 268 17 1 284Urban Outfitters NA 177 1 2 176Urban Outfitters EU 76 1 1 76Total Urban Outfitters 253 2 3 252Menus & Venues 9 — 1 8Total Company-Owned Stores 784 23 6 801Franchisee-Owned Stores(1) 9 — — 9Total URBN 793 23 6 810 (1) Includes 7 Urban Outfitters and 2 Anthropologie franchisee-owned stores.
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands. The Company operates omni-channel retail operations including stores, websites and catalogs for the Anthropologie, Free People, FP Movement and Urban Outfitters brands across the United States, Canada and Europe; Menus & Venues restaurants; and Urban Outfitters and Anthropologie franchisee-owned stores in the Middle East. Free People, FP Movement and Urban Outfitters wholesale sell products to department and specialty stores worldwide, digital businesses and the Company's Retail segment. Nuuly is primarily a women's apparel subscription rental service offering a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces.
A conference call will be held today to discuss second quarter results and will be webcast at 5:00 pm. ET at: https://edge.media-server.com/mmc/p/9wzhhhd4/.
As used in this document, unless otherwise defined, “Anthropologie” refers to the Company’s Anthropologie, Terrain and Maeve brands and “FP Group” refers to the Company’s Free People and FP Movement brands.
This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, currency fluctuations, economic conditions and legal or regulatory changes, the effects of war and geopolitical instability, including impacts of the conflicts in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises, labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, our effective utilization of technological advancements, including in artificial intelligence, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs such as retaliatory tariffs), border adjustment taxes or increases in duties or quotas, the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.
URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Income
(amounts in thousands, except share and per share data)
(unaudited) Three Months Ended Six Months Ended July 31, July 31, 2026 2025 2026 2025 Net sales$1,661,915 $1,504,755 $3,143,260 $2,834,256 Cost of sales 940,364 938,594 1,879,143 1,779,031 Gross profit 721,551 566,161 1,264,117 1,055,225 Selling, general and administrative expenses 432,812 391,774 835,697 752,611 Income from operations 288,739 174,387 428,420 302,614 Other income, net 9,801 8,886 15,986 18,532 Income before income taxes 298,540 183,273 444,406 321,146 Income tax expense 57,889 39,408 88,050 68,934 Net income$240,651 $143,865 $356,356 $252,212 Net income per common share: Basic$2.81 $1.60 $4.12 $2.78 Diluted$2.78 $1.58 $4.06 $2.73 Weighted-average common shares outstanding: Basic 85,633,607 89,667,451 86,553,213 90,692,646 Diluted 86,667,561 91,167,981 87,719,187 92,304,624 AS A PERCENTAGE OF NET SALES Net sales 100.0% 100.0% 100.0% 100.0%Cost of sales 56.6% 62.4% 59.8% 62.8%Gross profit 43.4% 37.6% 40.2% 37.2%Selling, general and administrative expenses 26.0% 26.0% 26.6% 26.5%Income from operations 17.4% 11.6% 13.6% 10.7%Other income, net 0.6% 0.6% 0.5% 0.6%Income before income taxes 18.0% 12.2% 14.1% 11.3%Income tax expense 3.5% 2.6% 2.8% 2.4%Net income 14.5% 9.6% 11.3% 8.9% URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(amounts in thousands, except share data)
(unaudited) July 31, January 31, July 31, 2026 2026 2025 ASSETS Current assets: Cash and cash equivalents$598,756 $369,206 $332,171 Marketable securities 117,371 326,724 290,664 Accounts receivable, net of allowance for doubtful accounts
of $1,102, $1,209 and $2,388, respectively 102,958 95,668 86,922 Inventory 778,539 700,945 696,199 Prepaid expenses and other current assets 226,772 193,561 213,356 Total current assets 1,824,396 1,686,104 1,619,312 Property and equipment, net 1,658,270 1,466,236 1,376,811 Operating lease right-of-use assets 1,047,947 1,051,109 1,011,840 Marketable securities 229,407 461,858 366,336 Other assets 362,967 342,306 336,494 Total Assets$5,122,987 $5,007,613 $4,710,793 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable$372,642 $327,903 $335,985 Current portion of operating lease liabilities 223,177 225,478 227,105 Accrued expenses, accrued compensation and other
current liabilities 558,300 564,713 533,058 Total current liabilities 1,154,119 1,118,094 1,096,148 Non-current portion of operating lease liabilities 990,197 1,000,088 953,025 Other non-current liabilities 124,455 74,144 81,228 Total Liabilities 2,268,771 2,192,326 2,130,401 Shareholders’ equity: Preferred shares; $.0001 par value, 10,000,000 shares
authorized, none issued — — — Common shares; $.0001 par value, 200,000,000 shares authorized,
85,650,390, 89,698,222 and 89,696,293 shares issued and
outstanding, respectively9 9 9 Additional paid-in-capital 7,022 19,912 7,277 Retained earnings 2,877,697 2,817,448 2,604,741 Accumulated other comprehensive loss (30,512) (22,082) (31,635)Total Shareholders’ Equity 2,854,216 2,815,287 2,580,392 Total Liabilities and Shareholders’ Equity$5,122,987 $5,007,613 $4,710,793 URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Cash Flows
(amounts in thousands)
(unaudited) Six Months Ended July 31, 2026 2025 Cash flows from operating activities: Net income $356,356 $252,212 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 73,637 61,400 Non-cash lease expense 106,053 106,546 Provision for deferred income taxes 73,591 11,608 Share-based compensation expense 15,702 14,956 Amortization of tax credit investment 7,452 8,587 Loss on disposition of property and equipment, net 388 262 Changes in assets and liabilities: Receivables (7,546) (12,025)Inventory (79,103) (70,611)Prepaid expenses and other assets (70,389) (25,095)Payables, accrued expenses and other liabilities 36,095 23,336 Operating lease liabilities (120,494) (120,130)Net cash provided by operating activities 391,742 251,046 Cash flows from investing activities: Cash paid for property and equipment (268,056) (107,549)Cash paid for marketable securities (117,984) (220,293)Sales and maturities of marketable securities 555,597 295,861 Net cash provided by (used in) investing activities 169,557 (31,981)Cash flows from financing activities: Proceeds from the exercise of stock options — 928 Share repurchases related to share repurchase program (299,996) (151,935)Share repurchases related to taxes for share-based awards (22,092) (21,144)Tax credit investment liability payments (7,803) (8,437)Net cash used in financing activities (329,891) (180,588)Effect of exchange rate changes on cash and cash equivalents (1,858) 3,213 Increase in cash and cash equivalents 229,550 41,690 Cash and cash equivalents at beginning of period 369,206 290,481 Cash and cash equivalents at end of period $598,756 $332,171 Important Information Regarding Non-GAAP Financial Measures
In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include refunds for tariffs previously paid under the International Emergency Economic Powers Act ("IEEPA"), associated interest income and the release of a valuation allowance against certain foreign net deferred tax assets. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures for fiscal 2027 that exclude the impact of these non-core business items.
We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.
URBAN OUTFITTERS, INC. Reconciliation of Non-GAAP Financial Measures (amounts in thousands, except per share data) (unaudited) Reconciliation of Total Company Adjusted Gross Profit: Three Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Gross profit (GAAP)$721,551 43.4% $566,161 37.6%Adjustments: IEEPA tariff refunds (a) (95,660) — Adjusted gross profit (Non-GAAP)$625,891 37.7% $566,161 37.6% Six Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Gross profit (GAAP)$1,264,117 40.2% $1,055,225 37.2%Adjustments: IEEPA tariff refunds (a) (95,660) — Adjusted gross profit (Non-GAAP)$1,168,457 37.2% $1,055,225 37.2% Reconciliation of Total Company Adjusted Income From Operations: Three Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Income from operations (GAAP)$288,739 17.4% $174,387 11.6%Adjustments: IEEPA tariff refunds (a) (95,660) — Adjusted income from operations (Non-GAAP)$193,079 11.6% $174,387 11.6% Six Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Income from operations (GAAP)$428,420 13.6% $302,614 10.7%Adjustments: IEEPA tariff refunds (a) (95,660) — Adjusted income from operations (Non-GAAP)$332,760 10.6% $302,614 10.7% URBAN OUTFITTERS, INC.Reconciliation of Non-GAAP Financial Measures(amounts in thousands, except per share data)(unaudited) Reconciliation of Total Company Adjusted Income Tax Expense and Adjusted Effective Tax Rate: Three Months Ended July 31, 2026 2025 $'s $'s Income before income taxes (GAAP)$298,540 $183,273 Adjustments: IEEPA tariff refunds (a) (95,660) — Interest income related to IEEPA tariff refunds (b) (4,445) — Adjusted income before income taxes (Non-GAAP)$198,435 $183,273 Income tax expense (GAAP)$57,889 $39,408 Adjustments: Provision for income taxes on adjustments (c) (24,978) — Release of valuation allowance (d) 16,225 — Adjusted income tax expense (Non-GAAP)$49,136 $39,408 Effective income tax rate (GAAP) 19.4% 21.5% Adjustments 5.4 — Adjusted effective income tax rate (Non-GAAP) 24.8% 21.5% Six Months Ended July 31, 2026 2025 $'s $'s Income before income taxes (GAAP)$444,406 $321,146 Adjustments: IEEPA tariff refunds (a) (95,660) — Interest income related to IEEPA tariff refunds (b) (4,445) — Adjusted income before income taxes (Non-GAAP)$344,301 $321,146 Income tax expense (GAAP)$88,050 $68,934 Adjustments: Provision for income taxes on adjustments (c) (24,978) — Release of valuation allowance (d) 16,225 — Adjusted income tax expense (Non-GAAP)$79,297 $68,934 Effective income tax rate (GAAP) 19.8% 21.5% Adjustments 3.2 — Adjusted effective income tax rate (Non-GAAP) 23.0% 21.5% URBAN OUTFITTERS, INC. Reconciliation of Non-GAAP Financial Measures (amounts in thousands, except per share data) (unaudited) Reconciliation of Total Company Adjusted Net Income and Adjusted Diluted EPS: Three Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Net income (GAAP)$240,651 14.5% $143,865 9.6%Adjustments: IEEPA tariff refunds (a) (95,660) — Interest income related to IEEPA tariff refunds (b) (4,445) — Provision for income taxes on adjustments (c) 24,978 — Release of valuation allowance (d) (16,225) — Adjusted net income (Non-GAAP)$149,299 9.0% $143,865 9.6% Diluted EPS (GAAP)$2.78 $1.58 Adjustments, net of tax (1.06) — Adjusted diluted EPS (Non-GAAP)$1.72 $1.58 Six Months Ended July 31, 2026 2025 $'s % of Net Sales $'s % of Net Sales Net income (GAAP)$356,356 11.3% $252,212 8.9%Adjustments: IEEPA tariff refunds (a) (95,660) — Interest income related to IEEPA tariff refunds (b) (4,445) — Provision for income taxes on adjustments (c) 24,978 — Release of valuation allowance (d) (16,225) — Adjusted net income (Non-GAAP)$265,004 8.4% $252,212 8.9% Diluted EPS (GAAP)$4.06 $2.73 Adjustments, net of tax (1.04) — Adjusted diluted EPS (Non-GAAP)$3.02 $2.73 (a) Included in "Cost of sales" is a one-time benefit related to refunds for tariffs previously paid under the International Emergency Economic Powers Act ("IEEPA") which the Company received during the three and six months ended July 31, 2026. (b) Included in "Other income, net" is interest income related to refunds for IEEPA tariffs received during the three and six months ended July 31, 2026. (c) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustment. (d) During the three and six months ended July 31, 2026, the Company released a valuation allowance against certain of its foreign net deferred tax assets, resulting in a benefit included in "Income tax expense." Contact: Oona McCullough Executive Director of Investor Relations (215) 454-4806
Urban Outfitters (URBN - Free Report) came out with quarterly earnings of $1.72 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this clothing and accessories retailer would post earnings of $1.12 per share when it actually produced earnings of $1.3, delivering a surprise of +16.07%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Urban Outfitters, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.66 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.83%. This compares to year-ago revenues of $1.5 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Urban Outfitters shares have added about 0.7% since the beginning of the year versus the S&P 500's gain of 12.2%.
What's Next for Urban Outfitters?While Urban Outfitters has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Urban Outfitters was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.50 on $1.64 billion in revenues for the coming quarter and $6.13 on $6.71 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Sportsman's Warehouse (SPWH - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 1.
This outdoor sporting goods specialty retailer is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +8.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Sportsman's Warehouse's revenues are expected to be $295.2 million, up 0.4% from the year-ago quarter.
Abercrombie’s Comeback Is a Work in ProgressUrban Outfitters NASDAQ: URBN reported record second-quarter sales and earnings for fiscal 2027, extending what CEO and Chairman Dick Hayne described as the company’s eighth consecutive quarter of record sales and profits.
Net sales rose 10% to $1.7 billion in the quarter ended July 31, 2026. Operating income increased 11% to a company record of $193 million, while adjusted earnings per diluted share grew 9% to $1.72. Management’s adjusted figures exclude one-time benefits associated with refunds of previously paid IEEPA tariffs, related interest income and a tax benefit tied to foreign deferred tax assets.
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This Golden Cross Could Send Urban Outfitters to New HighsAll of the company’s retail brands posted positive comparable sales, while its wholesale and Nuuly subscription-rental businesses also reported record second-quarter results. Retail segment comparable sales increased 6%, with digital comparable sales slightly ahead of store performance.
Brand performance The FP Group, which includes Free People and FP Movement, was a major contributor to growth. The group’s total revenue increased 15%, driven by a 10% retail segment comparable-sales gain, new stores and wholesale expansion. Wholesale revenue for the group rose 19%, led by FP Movement, intimates and women’s apparel.
Urban Outfitters Stock Stalls Despite Another Strong QuarterFree People posted 11% sales growth and a 9% retail segment comp, with strength in bottoms and intimates. FP Movement delivered 26% revenue growth and a 13% retail segment comp. The activewear brand opened four stores during the quarter, bringing its standalone store count to 97.
Urban Outfitters brand sales increased 8%, including an 8% global retail segment comp. In North America, digital sales outperformed stores, while European stores outperformed the digital channel. President Shea Jensen said the brand’s momentum reflected continued demand for denim, pants, lounge, novelty items and shoes, as well as marketing efforts that drove double-digit digital growth and customer acquisition.
Anthropologie reported 5% total revenue growth, supported by a 3% retail segment comp and new stores. Apparel and accessories posted positive comps, while home was flat. Global CEO Tricia Smith said the company saw elevated markdowns as it worked through slower-turning inventory, but regular-price comps turned positive in July as early fall merchandise reached stores.
Smith said the brand is rebalancing its assortment to make room for newness and believes it can return to a more consistent mid-single-digit comparable-sales growth rate over the longer term. Anthropologie recorded its 22nd consecutive quarter of positive sales comps and its 15th consecutive quarter with a double-digit operating-income rate, according to management.
Nuuly reaches profitability milestone Nuuly continued to expand rapidly, with revenue rising 29% to $179 million. Average active subscribers increased 30% from a year earlier to 484,000, and the business surpassed 500,000 active subscribers in early June before seasonal declines during the summer.
Nuuly President Dave Hayne said the subscription-rental business generated quarterly operating income of $18 million, or a 10% operating margin, for the first time. He said margins are expected to ease to the high-single-digit range in the second half because the second quarter is seasonally the strongest period for profitability.
For the full fiscal year, management said Nuuly could generate more than $700 million in revenue with a high-single-digit operating profit rate. The company expanded the service’s selection by 35% year over year to nearly 33,000 choices and added brands including Revolve private-label offerings, Collina Strada, Faithfull and Edikted. Nike was scheduled to join the platform in August, followed by J.Crew in October.
Nuuly is also expanding fulfillment capacity and automation. Its Kansas City facility has grown to 1 million square feet and can support up to 600,000 subscribers. The company is planning a new 1 million-square-foot facility near Philadelphia that is expected to open in late calendar 2028 and raise East Coast capacity to 600,000 subscribers. Once completed, the full network is expected to support roughly 1.2 million subscribers.
Margins, tariffs and outlook Gross profit dollars increased 11%, and the gross margin rate rose four basis points to 37.7%. Management said sales growth helped leverage store occupancy costs and delivery expenses, though those benefits were partly offset by higher merchandise costs from tariffs, inbound freight fuel surcharges and modestly higher Anthropologie markdowns.
The company said fuel surcharges related to the Middle East war reduced initial merchandise margin by about 50 basis points and outbound delivery and freight expenses by about 20 basis points during the quarter. Urban Outfitters expects those costs to remain in place for the rest of the fiscal year, assuming oil-related surcharges do not decline.
However, management said its effective tariff rate should be favorable in the second half as the company begins to anniversary higher prior-year tariffs. CFO Melanie Marein-Efron said third-quarter gross margin could improve by 25 to 50 basis points from the prior year, despite an estimated 70-basis-point headwind from fuel surcharges in each of the third and fourth quarters.
For the third quarter, Urban Outfitters expects total company sales growth in the high-single-digit range. The outlook includes:
Mid-single-digit retail segment comparable-sales growth; High-single-digit comps for the FP Group; Mid-single-digit comps for Urban Outfitters; Low- to mid-single-digit comps for Anthropologie; High-20% revenue growth at Nuuly; and Low-teens wholesale revenue growth. For the full fiscal year, the company continues to expect high-single-digit sales growth, with gross margin improving by about 25 basis points. Capital expenditures are planned at approximately $475 million, with about half allocated to logistics investments. Urban Outfitters plans to open about 54 stores and close about 18 during fiscal 2027, with much of the net new growth coming from FP Movement.
Hayne said management sees resilient consumer demand across its brands and expects the fuller-bottom fashion trend to continue into fiscal 2028. He also highlighted ongoing investment in artificial intelligence tools across supply chain, creative, design, marketing and inventory functions, although executives said measurable efficiencies from those efforts will take time to fully develop.
About Urban Outfitters (NASDAQ:URBN)Urban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city's historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.
The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.
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Urban Outfitters (URBN - Free Report) reported $1.66 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 10.4%. EPS of $1.72 for the same period compares to $1.58 a year ago.
The reported revenue represents a surprise of +0.83% over the Zacks Consensus Estimate of $1.65 billion. With the consensus EPS estimate being $1.72, the company has not delivered EPS surprise.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Urban Outfitters performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of stores - Retail Operations - Free People: 284 versus the four-analyst average estimate of 283.Number of stores - Retail Operations - Anthropologie: 257 versus 257 estimated by four analysts on average.Number of stores - Retail Operations - Urban Outfitters: 252 compared to the 252 average estimate based on four analysts.Comparable store sales - Retail Operations - YoY change: 6.2% compared to the 6.3% average estimate based on three analysts.Comparable store sales - Retail Operations - Urban Outfitters - YoY change: 8.4% versus 8.2% estimated by three analysts on average.Net sales by brand- Anthropologie: $634.54 million compared to the $638.53 million average estimate based on four analysts. The reported number represents a change of +4.5% year over year.Net sales by brand- Urban Outfitters: $360.02 million compared to the $356.53 million average estimate based on four analysts. The reported number represents a change of +8.1% year over year.Net sales by brand- Menus & Venues: $10.71 million compared to the $10.97 million average estimate based on three analysts. The reported number represents a change of +0.2% year over year.Net sales- Retail operations: $1.39 billion versus $1.39 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8% change.Net sales- Wholesale operations: $90.79 million versus the three-analyst average estimate of $87.67 million. The reported number represents a year-over-year change of +18.6%.Net sales by brand- FP Group: $478.05 million compared to the $470.24 million average estimate based on three analysts. The reported number represents a change of +15.2% year over year.Net sales- Subscription operations: $178.61 million versus $174.24 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +28.6% change.View all Key Company Metrics for Urban Outfitters here>>>
Shares of Urban Outfitters have returned +0.8% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Urban Outfitters is upgraded to a "Buy" as free cash flow and sales momentum accelerate, with shares poised to break out of consolidation. Nuuly, URBN's subscription business, is a key differentiator, growing 29% and driving improving margins and operating leverage. URBN's strong balance sheet, $600 million in cash, no debt, and aggressive buybacks support capital returns and future growth investments.
Key Takeaways URBN's gross profit rose 27.4% to $721.6M, helped by higher sales and a $95.7M tariff refund.Nuuly's subscriber base topped 500,000 in early June as subscription revenues increased 28.6%.URBN expects fiscal 2027 gross margin to expand about 25 basis points despite fuel surcharge headwinds. Urban Outfitters, Inc. (URBN - Free Report) reported strong second-quarter fiscal 2027 results, with earnings matching the Zacks Consensus Estimate, while revenues surpassed the consensus mark. Also, both metrics improved from the prior-year quarter’s reported figures. The company delivered record second-quarter sales and profits, marking its eighth consecutive quarter of record performance. As a result, shares of URBN increased 9.5% yesterday.
Management highlighted broad-based momentum across the Retail, Subscription and Wholesale segments, along with continued customer engagement and disciplined execution. All Retail segment brands posted positive comparable sales growth, while Nuuly continued to scale rapidly on strong subscriber growth. The Wholesale segment delivered robust double-digit gains, led by the FP Group.
URBN’s Quarterly PerformanceThis lifestyle specialty retailer delivered adjusted earnings per share of $1.72, in line with the Zacks Consensus Estimate. Adjusted earnings increased 8.9% year over year. The company’s earnings per share were $2.78 compared with $1.58 in the prior-year quarter.
Net sales increased 10.4% year over year to $1,661.9 million, beating the consensus mark of $1,648 million. The sales performance benefited from strength across Retail, Wholesale and Subscription operations.
URBN Delivers Record Revenues on Segment MomentumTotal Retail segment net sales rose 8% year over year to $1.39 billion, while comparable Retail segment sales increased 6.2%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. Comparable Retail segment sales increased 10% at FP Group, 8.4% at Urban Outfitters and 3% at Anthropologie. We estimated the Retail segment’s sales to increase 7.4% year over year.
Within the FP Group, total sales increased 15% year over year to $478.1 million, driven by continued momentum across both Retail and Wholesale operations. Free People and FP Movement continued to benefit from strong customer demand, while the FP Group Wholesale segment delivered a 19% increase in revenues. Urban Outfitters posted an 8% comparable-sales increase, supported by strength across North America and Europe.
The Wholesale segment posted net sales growth of 18.6%, driven by a 19.2% increase in FP Group wholesale sales due to higher sales to specialty customers and department stores.
Nuuly, the company’s women’s apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 28.6% year over year to $178.6 million, primarily driven by a 30.4% increase in average active subscribers. Average active subscribers reached 484,000 during the quarter, while the subscriber base crossed 500,000 in early June. We estimated the Nuuly segment’s sales to rise 18.7% year over year.
Urban Outfitters Expands Gross Margin on Sales GrowthGross profit rose 27.4% year over year to $721.6 million in the fiscal second quarter, mainly driven by higher net sales during the period. However, the reported gross margin increased 580 basis points year over year to 43.4%, which beat our estimate of 37.4% and benefited from a $95.7-million IEEPA tariff refund.
Adjusted gross margin increased 4 basis points to 37.7%. The improvement was primarily driven by benefits from store occupancy costs from higher comparable Retail store sales and leverage in delivery expenses from initiatives that helped offset fuel-surcharge costs. These benefits were partly offset by higher Retail markdowns at Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs.
Selling, general and administrative (SG&A) expenses increased 10.5% year over year to approximately $433 million. Our model estimated SG&A expenses to increase 8.8% year over year in the fiscal second quarter. The increase was primarily driven by higher marketing investments to support customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses. These increases were partly offset by leverage in store payroll expenses resulting from higher Retail store sales. The company continued to invest in artificial intelligence technology to support its current and future operations. As a percentage of net sales, SG&A expenses remained flat at 26%, which met our estimate.
URBN reported adjusted operating income of $193.1 million, up 11% from $174.4 million in the prior-year quarter. The adjusted operating margin improved 3 basis points year over year to 11.6%, reflecting the increase in adjusted gross margin.
Urban Outfitters Showcases Store GrowthIn the first six months of fiscal 2027, the company opened 23 stores and closed six stores. Store openings included four Anthropologie, seven Free People, 10 FP Movement and two Urban Outfitters stores, while closures included one Anthropologie, one FP Movement, three Urban Outfitters and one Menus & Venues location.
As of July 31, 2026, URBN operated 252 Urban Outfitters stores, 257 Anthropologie stores and 284 FP Group stores, including 97 FP Movement locations. The company operated eight Menus & Venues restaurants and nine franchisee-owned stores.
Urban Outfitters’ Financial Health SnapshotAs of July 31, 2026, Urban Outfitters had cash and cash equivalents of $598.8 million, up from $332.2 million in the prior-year period. Marketable securities totaled $346.8 million, while total shareholders’ equity stood at $2.85 billion at the quarter-end.
As of July 31, 2026, total inventory increased 11.8% year over year to $778.5 million. Total Retail segment inventory rose 12%, while comparable Retail segment inventory increased 8.4%. Wholesale segment inventory increased 10%. The increase in Retail inventory was primarily due to higher net sales and the timing of inventory receipts, while the increase in Wholesale inventory reflected higher sales.
During the first six months of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of July 31, 2026, 10 million common shares remained authorized for repurchase under the existing program.
URBN Lays Out Q3 2027 TargetsUrban Outfitters’ management expects third-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses.
The Retail segment’s comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit growth at FP Group, mid-single-digit growth at Urban Outfitters and low-to-mid-single-digit growth at Anthropologie. Nuuly is expected to post high-twenties revenue growth, while the Wholesale segment is projected to generate low-teens growth.
For the fiscal third quarter, URBN expects the gross profit margin to increase 25-50 basis points year over year. The anticipated improvement primarily reflects higher initial merchandise margins due to lower tariffs and leverage in occupancy costs, partly offset by higher fuel surcharges.
Management anticipates fuel surcharges to continue affecting the business through the remainder of fiscal 2027. The company noted that these surcharges are expected to create an unfavorable impact through higher inbound freight and delivery expenses.
Management expects third-quarter SG&A expenses to grow in line with or slightly below sales growth, reflecting continued investments in marketing, technology and AI initiatives while benefiting from leverage in store payroll and occupancy expenses.
URBN’s FY’27 OutlookFor fiscal 2027, management maintains its expectation for positive high-single-digit total company sales growth. The outlook reflects continued momentum across the portfolio, with Retail comparable sales expected to grow in the mid-single-digit range, Nuuly revenues projected to increase in the high-20% range and Wholesale revenues anticipated to grow in the low-teens range.
URBN expects fiscal 2027 gross margin to expand by approximately 25 basis points year over year. Management sees an incremental margin opportunity in the second half, primarily from improved initial merchandise margins as tariff pressures moderate. However, fuel surcharges are expected to remain a headwind through the remainder of the fiscal year.
For the full year, SG&A is expected to grow in line with sales, while inventory growth is expected to remain at or below sales growth as the company continues to focus on improving product turns. Management also plans to continue investing in marketing, technology and AI initiatives to support customer acquisition and long-term growth.
Capital expenditures for fiscal 2027 are planned at approximately $475 million. Approximately 35% of spending is expected to be allocated to retail store expansion and support, 50% to logistics investments and the remaining 15% to technology investments and home-office expansion. The logistics investments are intended to expand capacity and automation across the Subscription and Retail businesses.
URBN expects to open approximately 54 new stores and close approximately 18 stores during fiscal 2027. Net new store growth is expected to be primarily driven by FP Movement. The company plans to open 21 FP Movement, 12 Free People, 12 Anthropologie and eight Urban Outfitters stores during the year.
URBN Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Management expressed confidence as it enters the second half, citing double-digit sales and profit growth at Free People and FP Movement, positive comparable sales at Anthropologie and high-single-digit comparable sales at Urban Outfitters in both North America and Europe. Management also emphasized URBN’s multi-brand strategy and structural diversification across brands, demographics, product categories, distribution channels and geographies.
Shares of the Zacks Rank #2 (Buy) company have gained 10.8% in the past three months against the industry’s 11.7% decline.
Other Stocks to ConsiderFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
American Eagle Outfitters Inc. (AEO - Free Report) is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%.
Urban Outfitters (NASDAQ:URBN) on Wednesday posted mixed results for the second quarter.
The company posted second-quarter adjusted earnings of $1.72 per share, missing market estimates of $1.73 per share. The company’s sales came in at $1.662 billion versus estimates of $1.635 billion.
“We are pleased to report our highest adjusted profit quarter in Company history, marking our eighth consecutive quarter of record sales and profits. These results were driven by positive Retail segment ‘comps’ at every brand and continued double-digit growth in our Wholesale and Subscription segments,” said Richard A. Hayne, Chief Executive Officer. “Our customers continue to respond favorably to our fashion assortments. This gives us confidence in URBN’s ongoing success.”
Urban Outfitters shares fell 4.6% to trade at $79.11 on Thursday.
These analysts made changes to their price targets on Urban Outfitters following earnings announcement.
Wells Fargo analyst Ike Boruchow maintained the stock with an Equal-Weight rating and raised the price target from $75 to $80. UBS analyst Jay Sole maintained the stock with a Neutral and raised the price target from $80 to $82. Considering buying URBN stock? Here’s what analysts think:
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The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Urban Outfitters (URBN - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Urban Outfitters is a member of the Retail-Wholesale sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Urban Outfitters is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for URBN's full-year earnings has moved 3.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, URBN has gained about 4.7% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 0.7% on average. This means that Urban Outfitters is performing better than its sector in terms of year-to-date returns.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Figs (FIGS - Free Report) . The stock has returned 32.9% year-to-date.
The consensus estimate for Figs' current year EPS has increased 25.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Urban Outfitters is a member of the Retail - Apparel and Shoes industry, which includes 38 individual companies and currently sits at #91 in the Zacks Industry Rank. On average, this group has lost an average of 13.2% so far this year, meaning that URBN is performing better in terms of year-to-date returns. Figs is also part of the same industry.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Urban Outfitters and Figs as they could maintain their solid performance.
Urban Outfitters (URBN), along with MarketSurge Growth 250 names DHT Holdings (DHT) and insurance company Oscar Health (OSCR), recently hit new highs.
Steel stock ArcelorMittal (MT) also hit a high and is in a buy zone.
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Urban Outfitters Taps Buy Point
The apparel retail stock is back above the prior 77.33 buy point of cup-with-handle base after its early August breakout crumbled, triggering the 7% sell signal from the entry.
On Aug. 27, the stock reached the 84.35 buy point of a consolidation pattern marking a record high, but quickly reversed below the entry. Urban Outfitters' IBD Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks.
On Aug. 26, Urban Outfitters reported earnings of $1.72 per share for its quarter ending July 31, missing estimates by a penny. Its fiscal second-quarter sales increased 10% to a record $1.66 billion, topping views. Its comparable retail net sales increased 6.2%.
Urban had a total of 810 locations as of the July quarter. Besides its namesake brand, it also operates Anthropologie and FP Group.
Insurance Company Oscar Shines
On Aug. 24, Oscar Health hit 33.55, a level not seen since June 2021. Oscar has tested its 10-week moving average for four out of the last five weeks. The stock has gained nearly 190% since its low of 10.69, reached on March 30.
The health insurance company on Aug. 6 swung to a second-quarter profit of $1.10 per share from a loss of 89 cents per share a year ago. Its revenue jumped 67% to $4.789 billion. It maintained its full-year 2026 revenue forecast of between $18.7 billion and $19 billion. In its earnings call, Oscar warned of second-half uncertainty regarding Affordable Care Act Marketplace healthcare utilization.
Next, DHT is back in the 5% buy zone up to 19.95 of a cup-with-handle base with a 19 entry point. On Aug. 5, the crude oil tanker company posted second-quarter profit growth of 251% to $1.23 per share, following a 278% jump in the prior quarter. Analysts call for its third-quarter earnings to surge 271% to $1.04 per share.
Lastly, Luxembourg-based steel and mining stock ArcelorMittal is trading tightly in the buy zone up to 76.13 of a late-stage consolidation. The entry point is 72.50. The steel name is around 2% below its all-time high of 75.66, hit on Aug. 5.
After two straight declining quarters of earnings, Wall Street expects 144% growth in the third quarter, followed by a 535% spike in the fourth quarter. Its sales are forecast to rise 9% in 2026. ArcelorMittal has a mediocre 54 out of 99-possible IBD Composite Rating.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
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Urban Outfitters (URBN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, URBN broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
URBN has rallied 6.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests URBN could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account URBN's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch URBN for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. URBN has a Momentum Style Score of A, and shares are up 6.1% over the past four weeks.
For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $6.13 per share. URBN boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URBN should be on investors' short list.
Wall Street analysts forecast that Urban Outfitters (URBN - Free Report) will report quarterly earnings of $1.72 per share in its upcoming release, pointing to a year-over-year increase of 8.9%. It is anticipated that revenues will amount to $1.65 billion, exhibiting an increase of 9.5% compared to the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain Urban Outfitters metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Net sales by brand- Anthropologie' stands at $638.53 million. The estimate suggests a change of +5.2% year over year.
Analysts expect 'Net sales by brand- Urban Outfitters' to come in at $356.53 million. The estimate suggests a change of +7% year over year.
It is projected by analysts that the 'Net sales by brand- Menus & Venues' will reach $10.97 million. The estimate indicates a change of +2.7% from the prior-year quarter.
Analysts forecast 'Net sales- Retail operations' to reach $1.39 billion. The estimate indicates a year-over-year change of +7.5%.
Analysts' assessment points toward 'Number of stores - Retail Operations - Free People' reaching 283 . The estimate is in contrast to the year-ago figure of 247 .
The average prediction of analysts places 'Number of stores - Retail Operations - Anthropologie' at 257 . Compared to the current estimate, the company reported 243 in the same quarter of the previous year.
Analysts predict that the 'Number of stores - Retail Operations - Urban Outfitters' will reach 252 . The estimate is in contrast to the year-ago figure of 257 .
According to the collective judgment of analysts, 'Number of stores - Total URBN' should come in at 800 . Compared to the current estimate, the company reported 765 in the same quarter of the previous year.
The consensus among analysts is that 'Comparable store sales - Retail Operations - YoY change' will reach 6.3%. Compared to the current estimate, the company reported 5.6% in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Comparable store sales - Retail Operations - Free People - YoY change' will likely reach 8.2%. The estimate is in contrast to the year-ago figure of 6.7%.
Based on the collective assessment of analysts, 'Comparable store sales - Retail Operations - Anthropologie - YoY change' should arrive at 4.0%. Compared to the current estimate, the company reported 5.7% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Comparable store sales - Retail Operations - Urban Outfitters - YoY change' of 8.2%. The estimate is in contrast to the year-ago figure of 4.2%.
View all Key Company Metrics for Urban Outfitters here>>>
Urban Outfitters shares have witnessed a change of +4.4% in the past month, in contrast to the Zacks S&P 500 composite's +2.8% move. With a Zacks Rank #2 (Buy), URBN is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Aurora Investment Counsel acquired a new stake in Urban Outfitters, Inc. (NASDAQ:URBN – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 38,919 shares of the apparel retailer’s stock, valued at approximately $2,758,000. Urban Outfitters comprises 1.4% of Aurora Investment Counsel’s investment portfolio, making the stock its 8th largest position.
Several other institutional investors and hedge funds have also bought and sold shares of URBN. Jupiter Asset Management Ltd. grew its stake in Urban Outfitters by 33.8% in the 4th quarter. Jupiter Asset Management Ltd. now owns 1,297,452 shares of the apparel retailer’s stock valued at $97,646,000 after buying an additional 327,453 shares in the last quarter. HighTower Advisors LLC raised its holdings in Urban Outfitters by 883.4% during the 4th quarter. HighTower Advisors LLC now owns 43,081 shares of the apparel retailer’s stock valued at $3,242,000 after acquiring an additional 38,700 shares during the period. PBU The Pension Fund of Early Childhood & Youth Educators purchased a new stake in shares of Urban Outfitters during the fourth quarter worth $7,539,000. UBS Group AG boosted its holdings in shares of Urban Outfitters by 339.3% in the fourth quarter. UBS Group AG now owns 641,454 shares of the apparel retailer’s stock worth $48,276,000 after acquiring an additional 495,441 shares during the period. Finally, Virtus Wealth Solutions LLC bought a new position in shares of Urban Outfitters in the fourth quarter worth $1,310,000. 77.61% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In Several equities analysts have recently weighed in on URBN shares. Bank of America lifted their price target on Urban Outfitters from $85.00 to $90.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. JPMorgan Chase & Co. raised their target price on Urban Outfitters from $97.00 to $110.00 and gave the stock an “overweight” rating in a research note on Tuesday. Wall Street Zen downgraded Urban Outfitters from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. Morgan Stanley reiterated an “overweight” rating and set a $89.00 price target on shares of Urban Outfitters in a research report on Monday, July 6th. Finally, The Goldman Sachs Group raised shares of Urban Outfitters from a “neutral” rating to a “buy” rating and increased their price target for the stock from $76.00 to $93.00 in a report on Monday, July 20th. Eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $89.73.
Check Out Our Latest Stock Report on Urban Outfitters Insider Buying and Selling at Urban Outfitters In other news, insider Azeez Hayne sold 8,733 shares of Urban Outfitters stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $73.18, for a total transaction of $639,080.94. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Melanie Marein-Efron sold 5,036 shares of the company’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $73.42, for a total transaction of $369,743.12. Following the completion of the transaction, the chief financial officer owned 17,023 shares of the company’s stock, valued at $1,249,828.66. This trade represents a 22.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 32.10% of the company’s stock.
Urban Outfitters Stock Down 0.3% Shares of NASDAQ URBN opened at $74.38 on Thursday. The stock’s 50-day simple moving average is $73.87 and its two-hundred day simple moving average is $70.58. Urban Outfitters, Inc. has a twelve month low of $59.53 and a twelve month high of $84.35. The firm has a market capitalization of $6.37 billion, a P/E ratio of 14.28, a P/E/G ratio of 1.38 and a beta of 1.23.
Urban Outfitters (NASDAQ:URBN – Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The apparel retailer reported $1.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.12 by $0.18. Urban Outfitters had a return on equity of 18.92% and a net margin of 7.48%.The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter last year, the company posted $1.16 EPS. The company’s revenue for the quarter was up 11.4% on a year-over-year basis. As a group, research analysts anticipate that Urban Outfitters, Inc. will post 6.13 EPS for the current fiscal year.
Urban Outfitters Profile (Free Report)
Urban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city’s historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.
The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.
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Assenagon Asset Management S.A. trimmed its holdings in Urban Outfitters, Inc. (NASDAQ: URBN) by 85.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 13,371 shares of the apparel retailer's stock after selling 78,827 shares during the period.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.65; value investors should take notice.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.12 to $6.13 per share. URBN also boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URBN should be on investors' short list.
On August 10, 2026, Urban Outfitters Inc (URBN) shares rose 3.4%, closing at $79.48. This price is within the 52-week range of $59.54 to $84.35, reflecting a no
Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Urban Outfitters (URBN - Free Report) or Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Urban Outfitters is sporting a Zacks Rank of #2 (Buy), while Ermenegildo Zegna N.V. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that URBN likely has seen a stronger improvement to its earnings outlook than ZGN has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
URBN currently has a forward P/E ratio of 12.56, while ZGN has a forward P/E of 31.56. We also note that URBN has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZGN currently has a PEG ratio of 3.57.
Another notable valuation metric for URBN is its P/B ratio of 2.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZGN has a P/B of 5.07.
These are just a few of the metrics contributing to URBN's Value grade of A and ZGN's Value grade of D.
URBN sticks out from ZGN in both our Zacks Rank and Style Scores models, so value investors will likely feel that URBN is the better option right now.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.05, while its industry has an average P/E of 14.94. Over the last 12 months, URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80.
Investors should also recognize that URBN has a P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.42. URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14, over the past year.
Finally, investors will want to recognize that URBN has a P/CF ratio of 10.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.29. Within the past 12 months, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42.
These are only a few of the key metrics included in Urban Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, URBN looks like an impressive value stock at the moment.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Urban Outfitters (URBN - Free Report) , which belongs to the Zacks Retail - Apparel and Shoes industry, could be a great candidate to consider.
This clothing and accessories retailer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.70%.
For the most recent quarter, Urban Outfitters was expected to post earnings of $1.12 per share, but it reported $1.3 per share instead, representing a surprise of 16.07%. For the previous quarter, the consensus estimate was $1.24 per share, while it actually produced $1.43 per share, a surprise of 15.32%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Urban Outfitters. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Urban Outfitters has an Earnings ESP of +1.98% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
After reaching an important support level, Urban Outfitters (URBN - Free Report) could be a good stock pick from a technical perspective. URBN surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
URBN has rallied 6.1% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests URBN could be on the verge of another move higher.
The bullish case solidifies once investors consider URBN's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on URBN for more gains in the near future.
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Urban Outfitters (URBN - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 1.6%, the stock of this clothing and accessories retailer is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. URBN meets this criterion too, as the stock gained 6.5% over the past 12 weeks.
Moreover, the momentum for URBN is fast paced, as the stock currently has a beta of 1.22. This indicates that the stock moves 22% higher than the market in either direction.
Given this price performance, it is no surprise that URBN has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped URBN earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, URBN is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. URBN is currently trading at 0.98 times its sales. In other words, investors need to pay only 98 cents for each dollar of sales.
So, URBN appears to have plenty of room to run, and that too at a fast pace.
In addition to URBN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.85; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.16 to $6.13 per share. URBN boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URBN should be on investors' short list.
Arrowstreet Capital Limited Partnership increased its holdings in shares of Urban Outfitters, Inc. (NASDAQ:URBN – Free Report) by 23.9% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 981,130 shares of the apparel retailer’s stock after purchasing an additional 189,454 shares during the period. Arrowstreet Capital Limited Partnership owned 1.15% of Urban Outfitters worth $62,155,000 as of its most recent SEC filing.
Other hedge funds have also modified their holdings of the company. Jupiter Asset Management Ltd. raised its stake in shares of Urban Outfitters by 33.8% in the fourth quarter. Jupiter Asset Management Ltd. now owns 1,297,452 shares of the apparel retailer’s stock worth $97,646,000 after purchasing an additional 327,453 shares during the last quarter. HighTower Advisors LLC lifted its stake in shares of Urban Outfitters by 883.4% in the 4th quarter. HighTower Advisors LLC now owns 43,081 shares of the apparel retailer’s stock valued at $3,242,000 after purchasing an additional 38,700 shares during the period. UBS Group AG boosted its stake in shares of Urban Outfitters by 339.3% during the 4th quarter. UBS Group AG now owns 641,454 shares of the apparel retailer’s stock worth $48,276,000 after acquiring an additional 495,441 shares in the last quarter. Virtus Wealth Solutions LLC purchased a new position in Urban Outfitters during the fourth quarter worth approximately $1,310,000. Finally, PBU The Pension Fund of Early Childhood & Youth Educators acquired a new stake in Urban Outfitters in the 4th quarter valued at $7,539,000. 77.61% of the stock is owned by hedge funds and other institutional investors.
Insider Transactions at Urban Outfitters In other news, CFO Melanie Marein-Efron sold 5,036 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $73.42, for a total value of $369,743.12. Following the completion of the transaction, the chief financial officer owned 17,023 shares of the company’s stock, valued at $1,249,828.66. The trade was a 22.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Azeez Hayne sold 8,733 shares of Urban Outfitters stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $73.18, for a total transaction of $639,080.94. The SEC filing for this sale provides additional information. Insiders own 32.10% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms recently issued reports on URBN. JPMorgan Chase & Co. lifted their price objective on Urban Outfitters from $94.00 to $97.00 and gave the stock an “overweight” rating in a report on Thursday, May 21st. Wall Street Zen upgraded shares of Urban Outfitters from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Zacks Research raised shares of Urban Outfitters from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Morgan Stanley restated an “overweight” rating and issued a $89.00 price objective on shares of Urban Outfitters in a report on Monday, July 6th. Finally, The Goldman Sachs Group raised Urban Outfitters from a “neutral” rating to a “buy” rating and increased their price target for the company from $76.00 to $93.00 in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Urban Outfitters has a consensus rating of “Moderate Buy” and a consensus price target of $87.91.
Read Our Latest Research Report on URBN
Urban Outfitters Stock Up 3.8% Shares of NASDAQ URBN opened at $72.61 on Tuesday. The firm has a 50-day moving average price of $72.50 and a 200 day moving average price of $70.01. Urban Outfitters, Inc. has a 52 week low of $59.53 and a 52 week high of $84.35. The stock has a market capitalization of $6.22 billion, a price-to-earnings ratio of 13.94, a price-to-earnings-growth ratio of 1.29 and a beta of 1.22.
Urban Outfitters (NASDAQ:URBN – Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The apparel retailer reported $1.30 earnings per share for the quarter, topping analysts’ consensus estimates of $1.12 by $0.18. Urban Outfitters had a return on equity of 18.92% and a net margin of 7.48%.The business had revenue of $1.48 billion for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the prior year, the firm posted $1.16 EPS. The company’s revenue was up 11.4% compared to the same quarter last year. Equities research analysts expect that Urban Outfitters, Inc. will post 6.13 EPS for the current fiscal year.
Urban Outfitters Profile (Free Report)
Urban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city’s historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.
The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.
Read More Five stocks we like better than Urban Outfitters AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding URBN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Urban Outfitters, Inc. (NASDAQ:URBN – Free Report).
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Bank of New York Mellon Corp trimmed its stake in Urban Outfitters, Inc. (NASDAQ:URBN – Free Report) by 8.4% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 389,823 shares of the apparel retailer’s stock after selling 35,898 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.46% of Urban Outfitters worth $24,695,000 as of its most recent SEC filing.
Other institutional investors have also modified their holdings of the company. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Urban Outfitters in the fourth quarter valued at approximately $27,000. Brown Brothers Harriman & Co. grew its holdings in Urban Outfitters by 815.0% in the 4th quarter. Brown Brothers Harriman & Co. now owns 366 shares of the apparel retailer’s stock worth $28,000 after buying an additional 326 shares in the last quarter. Salomon & Ludwin LLC grew its holdings in Urban Outfitters by 58.4% in the 4th quarter. Salomon & Ludwin LLC now owns 404 shares of the apparel retailer’s stock worth $31,000 after buying an additional 149 shares in the last quarter. Richardson Financial Services Inc. increased its position in Urban Outfitters by 90.3% in the 4th quarter. Richardson Financial Services Inc. now owns 432 shares of the apparel retailer’s stock valued at $33,000 after acquiring an additional 205 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Urban Outfitters in the 4th quarter valued at approximately $33,000. Institutional investors own 77.61% of the company’s stock.
Urban Outfitters Stock Up 3.8% NASDAQ:URBN opened at $72.61 on Tuesday. Urban Outfitters, Inc. has a 1-year low of $59.53 and a 1-year high of $84.35. The firm has a market capitalization of $6.22 billion, a price-to-earnings ratio of 13.94, a price-to-earnings-growth ratio of 1.29 and a beta of 1.22. The stock has a fifty day simple moving average of $72.50 and a 200 day simple moving average of $70.01.
Urban Outfitters (NASDAQ:URBN – Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The apparel retailer reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.18. Urban Outfitters had a return on equity of 18.92% and a net margin of 7.48%.The firm had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the previous year, the company earned $1.16 EPS. The business’s revenue for the quarter was up 11.4% compared to the same quarter last year. Equities analysts predict that Urban Outfitters, Inc. will post 6.13 earnings per share for the current year.
Wall Street Analysts Forecast Growth A number of brokerages have issued reports on URBN. Jefferies Financial Group reiterated a “hold” rating and set a $72.00 price target on shares of Urban Outfitters in a research report on Thursday, May 21st. Zacks Research raised Urban Outfitters from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. Bank of America lifted their price objective on shares of Urban Outfitters from $85.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Morgan Stanley reaffirmed an “overweight” rating and issued a $89.00 price objective on shares of Urban Outfitters in a report on Monday, July 6th. Finally, Weiss Ratings upgraded shares of Urban Outfitters from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $87.91.
Check Out Our Latest Research Report on URBN
Insider Buying and Selling In other Urban Outfitters news, insider Azeez Hayne sold 8,733 shares of Urban Outfitters stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $73.18, for a total transaction of $639,080.94. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Melanie Marein-Efron sold 5,036 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $73.42, for a total value of $369,743.12. Following the completion of the sale, the chief financial officer owned 17,023 shares of the company’s stock, valued at $1,249,828.66. The trade was a 22.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 32.10% of the company’s stock.
Urban Outfitters Profile (Free Report)
Urban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city’s historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.
The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.
Featured Articles Five stocks we like better than Urban Outfitters AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight
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Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Urban Outfitters (URBN) and Ermenegildo Zegna N.V. (ZGN). But which of these two stocks is more attractive to value investors?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Urban Outfitters (URBN - Free Report) . URBN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.05. This compares to its industry's average Forward P/E of 14.45. Over the past 52 weeks, URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80.
Another valuation metric that we should highlight is URBN's P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.16. Within the past 52 weeks, URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14.
Finally, investors will want to recognize that URBN has a P/CF ratio of 10.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.71. Within the past 12 months, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42.
These are only a few of the key metrics included in Urban Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, URBN looks like an impressive value stock at the moment.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.31; value investors should take notice.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.29 to $6.13 per share. URBN also boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, URBN should be on investors' short list.
Key Takeaways URBN's Nuuly revenues rose 34.5% in Q1 fiscal 2027, driven by continued subscriber growth.Nuuly added about 110,000 subscribers year over year, nearing 500,000 active subscribers.URBN's Nuuly posted a $10M operating profit with a 6% operating margin as scale improved profitability. Urban Outfitters Inc. (URBN - Free Report) Nuuly subscription business continues to stand out as one of the company’s fastest-growing segments, reinforcing the value of its diversified operating model. During the first quarter of fiscal 2027, Nuuly generated $167.3 million in revenues, representing a 34.5% year-over-year increase. The performance was primarily driven by continued growth in subscribers, highlighting rising consumer acceptance of apparel rental as a complementary alternative to traditional retail.
Subscriber expansion remained the key growth catalyst. Average active subscribers increased 33% year over year, adding roughly 110,000 subscribers versus the prior-year period. Management noted that the platform is now approaching 500,000 active subscribers, reflecting sustained demand and effective customer acquisition efforts. Healthy retention rates, combined with targeted marketing campaigns, continue to support consistent subscriber growth and strengthen customer engagement.
Nuuly's financial performance also demonstrated improving operating efficiency. The business generated $10 million in operating profit, translating into a 6% operating margin during the quarter. Operating leverage from the expanding subscriber base more than offset continued investments in marketing, underscoring the platform's ability to scale profitably while maintaining a disciplined approach to long-term growth.
Profitability also continued to improve as Nuuly scaled its operations. Subscription segment gross profit increased 39%, while the gross margin expanded by 85 basis points to 28.7%. Higher sales, supported by a growing subscriber base, helped drive stronger unit economics and demonstrated the business's ability to generate increasing profitability alongside rapid revenue growth.
Management remains focused on expanding Nuuly while improving profitability. The company believes its ability to grow subscribers alongside stronger operating economics highlights the scalability of the business and reinforces confidence in its significant long-term growth potential. Our model estimates that the net sales of the Nuuly segment will increase 20% year over year in fiscal 2027.
URBN’s Price Performance, Valuation & EstimatesShares of Urban Outfitters have lost 0.7% over the past three months compared with the industry’s 2.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, URBN trades at a trailing price-to-sales ratio of 0.96X, below the industry’s average of 1.48X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2027 earnings implies year-over-year growth of 12.7%, while the same for fiscal 2028 indicates an uptick of 10.2%. Estimates for fiscal 2027 and 2028 have been revised upward by 5 cents and 7 cents, respectively, over the past seven days.
Image Source: Zacks Investment Research
URBN currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks in RetailGenesco Inc. (GCO - Free Report) is a Nashville-based specialty retail and branded company. It sells footwear and accessories in retail stores. The company flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.
Tapestry, Inc. (TPR - Free Report) is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company sports a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Urban Outfitters has a Zacks Rank of #1 (Strong Buy), while Ermenegildo Zegna N.V. has a Zacks Rank of #3 (Hold) right now. This means that URBN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
URBN currently has a forward P/E ratio of 11.14, while ZGN has a forward P/E of 29.93. We also note that URBN has a PEG ratio of 1.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ZGN currently has a PEG ratio of 3.85.
Another notable valuation metric for URBN is its P/B ratio of 2.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZGN has a P/B of 4.64.
Based on these metrics and many more, URBN holds a Value grade of B, while ZGN has a Value grade of D.
URBN stands above ZGN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URBN is the superior value option right now.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of URBN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways URBN grew revenues 11.4% to $1.48 billion, supported by retail, wholesale and subscription gains.URBN's Wholesale segment revenues increased 24.8% as demand from specialty retail partners improved.URBN's subscription revenues rose 34.5%, driven by growth in average active subscribers. Urban Outfitters Inc. (URBN - Free Report) continues to benefit from the strength of its diversified operating model, with its Retail, Wholesale and Subscription businesses each contributing meaningfully to growth. By generating revenues through stores, digital channels, wholesale partnerships and its rapidly expanding Nuuly rental platform, the company has built a balanced business that is helping drive consistent performance across varying consumer spending environments.
The strategy delivered another strong quarter. In the first quarter of fiscal 2027, URBN reported record revenues of $1.48 billion, an increase of 11.4% from the prior-year period, marking its seventh consecutive quarter of record sales and earnings. Retail remained the company's largest business, with segment sales rising 8% to $1.22 billion. Comparable retail sales increased 5.6%, supported by high-single-digit growth in digital sales and mid-single-digit growth in store sales, highlighting healthy customer engagement across channels.
Wholesale provided a significant boost to overall performance. Segment revenues climbed 24.8% to $93.2 million, driven primarily by strong demand for FP Group products and increased sales to specialty retail customers. Management noted that wholesale growth was broad-based, extending across both specialty and department store accounts, underscoring the segment's growing contribution to URBN's revenue diversification strategy.
Meanwhile, Nuuly remained one of the company's fastest-growing businesses. Subscription revenues increased 34.5% to $167.3 million, fueled by a 33.3% increase in average active subscribers. Management highlighted that Nuuly added more than 110,000 average active subscribers compared with the prior-year quarter and is approaching the milestone of 500,000 active subscribers. The business generated an operating profit during the quarter, demonstrating that subscriber growth is being accompanied by improving profitability as the platform scales.
Management expects high-single-digit total sales growth in the second quarter. The outlook is supported by anticipated high-single-digit comparable sales growth at FP Group and Urban Outfitters, along with low- to mid-single-digit comparable sales growth at Anthropologie. With digital demand remaining strong, wholesale momentum continuing and Nuuly steadily expanding its subscriber base, URBN appears well-positioned to sustain growth across its Retail, Wholesale and Subscription segments.
URBN’s Price Performance, Valuation & EstimatesShares of Urban Outfitters have gained 6.3% over the past three months compared with the industry’s 3.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, URBN trades at a trailing price-to-sales ratio of 0.99X, down from the industry’s average of 1.45X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2027 earnings implies year-over-year growth of 11.8%, whereas the same for fiscal 2028 indicates an uptick of 9.8%. Estimates for fiscal 2027 and 2028 have been revised upward by 11 cents and 13 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
URBN currently carries a Zacks Rank #3 (Hold).
Key PicksWe have highlighted three better-ranked stocks in the retail space, namely Tapestry, Inc. (TPR - Free Report) , Genesco Inc. (GCO - Free Report) and Levi Strauss & Co. (LEVI - Free Report) .
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Genesco is a Nashville-based specialty retail and branded company, sells footwear and accessories in retail stores. The company flaunts a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 12.7% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.
Urban Outfitters remains a Buy, supported by a debt-free balance sheet, robust cash flow, and aggressive expansion plans. Q1 FY27 saw net sales up ~11.4%, EPS up ~12%, and strong growth in the Nuuly subscription segment, driving both revenue and valuable consumer data. URBN is increasing FY27 CAPEX to $475 million, prioritizing logistics, store expansion, and technology, while executing significant buybacks yielding ~5%.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.05, which compares to its industry's average of 15.11. Over the last 12 months, URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80.
Another valuation metric that we should highlight is URBN's P/B ratio of 2.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.49. URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14, over the past year.
Finally, we should also recognize that URBN has a P/CF ratio of 10.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.64. Over the past year, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42.
These are just a handful of the figures considered in Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URBN is an impressive value stock right now.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Urban Outfitters (URBN - Free Report) Urban Outfitters, Inc. was founded in 1970 and is headquartered in Philadelphia, PA. It is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company’s key brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly. Anthropologie also includes the Terrain and Maeve brands. Free People also includes FP Movement. The company operates in North America and Europe, and also sells through franchise partners in the Middle East.
URBN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. URBN has a Momentum Style Score of A, and shares are up 1.2% over the past four weeks.
For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $6.01 per share. URBN boasts an average earnings surprise of +12.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URBN should be on investors' short list.
The brands expand their partnership with a one-of-a-kind experience honoring a remarkable graduate and thousands of surprise deliveries for students nationwide
, /PRNewswire/ -- This week, Urban Outfitters and DoorDash celebrated the Class of 2030 by hosting The Ultimate Graduation Celebration, a personalized experience honoring graduating high school senior Priya Johnson in her hometown of Chicago. The event builds on the brand's recently launched partnership and is an extension of Special Delivery—Urban Outfitters' annual graduation initiative that surprises thousands of students who have sent organic graduation announcements and letters to the brand.
Congrats Priya!
Urban Outfitters and DoorDash celebrate the class of 2030 This year, Special Delivery continues to reach even more students and in new, exciting ways. In their shared goal to show up in the moments that matter most, UO and DoorDash reimagined the graduation initiative with a physical experience delivered to a deserving graduate. Priya Johnson, whose letter to UO shared her story of ambition, community, and style, was the guest of honor at the Chicago-based grad party on June 24.
"We're always looking for meaningful ways to celebrate our customers," said Shea Jensen, president of Urban Outfitters. "The stories they share each year in these letters reinforce why we stay in sync with how they live and shop. Our partnership with DoorDash helps us create new ways for them to discover, access, and experience Urban Outfitters."
The event brought together Priya's friends, family, and local members of Urban Outfitters' Me@UO community for an evening of music, self-expression, and celebration. Priya was also surprised with a personalized video message from one of her favorite musicians, Kali Uchis, as well as tickets and a meet-and-greet experience at an upcoming show.
For Priya, the celebration was an unexpected reminder of how meaningful this milestone moment can be. She shared, "I am so incredibly grateful for everything that Urban Outfitters and DoorDash planned for me! This all started with me sending out a graduation invite, and I never thought this would be the result! I am so thankful for everything!"
With nearly 2 in 5 Gen Z consumers ordering delivery weekly, according to YouGov data, the partnership is designed to help customers access the styles and essentials they want for everything from graduation celebrations to last-minute plans. Customers can shop Urban Outfitters on DoorDash by visiting Urban Outfitters' storefront in the DoorDash app.
About Urban Outfitters
Urban Outfitters is a global lifestyle brand dedicated to fueling the next generation's individuality through a unique blend of product, creativity, music, and youth culture. Founded in 1970 in a small space across from the University of Pennsylvania, Urban Outfitters now operates over 200 stores across the United States, Canada, and Europe, alongside a dynamic digital presence. Empowering bold self-expression, Urban Outfitters leads with its distinctive designs and curated selection of women's, men's, accessories, and home products, and best-in-class brand partnerships. For more information, visit Urban Outfitters at www.urbanoutfitters.com.
About DoorDash
DoorDash (NASDAQ: DASH) is one of the world's leading local commerce platforms that helps businesses of all kinds grow and innovate, connects consumers to the best of their neighborhoods, and gives people fast, flexible ways to earn. Since its founding in 2013, DoorDash has expanded to more than 40 countries, using technology and logistics to shape the future of local commerce and broaden access to opportunity. With a growing international presence that now includes Deliveroo and Wolt, DoorDash combines global scale with local expertise to serve communities around the world.
Key Takeaways URBN reported record Q1 revenues, with positive comparable sales across every retail brand.ANF delivered its 14th straight quarter of revenue growth, led by Abercrombie and Hollister momentum.Both retailers are investing in AI, digital commerce and omnichannel capabilities to support growth. Urban Outfitters, Inc. (URBN - Free Report) and Abercrombie & Fitch Co. (ANF - Free Report) are two of the most influential specialty apparel retailers competing for market share in the global fashion and lifestyle industry.
While Urban Outfitters has built a diversified portfolio spanning Urban Outfitters, Anthropologie, Free People, FP Movement and the fast-growing Nuuly rental platform, Abercrombie has transformed itself into a modern lifestyle retailer led by the Abercrombie and Hollister brands. Both companies generate the majority of their revenues through direct-to-consumer channels while leveraging physical stores, digital commerce and omnichannel capabilities to strengthen customer engagement.
The comparison between URBN and ANF is especially compelling as both retailers continue gaining market share in an otherwise highly competitive apparel industry through differentiated brand portfolios, digital innovation and disciplined inventory management. Although they target overlapping fashion-conscious consumers, their strategies differ meaningfully. Urban Outfitters relies on a multi-brand ecosystem serving diverse demographics and lifestyle categories, while Abercrombie focuses on elevating two global brands through premium positioning and international expansion.
Let us dive into the two companies’ key statistics, market share, valuation, dividend strategies and stock performances to determine which is better positioned for growth in 2026.
The Case for URBNUrban Outfitters' biggest competitive strength lies in its highly diversified business model, which continues to deliver consistent growth across multiple brands and channels. Unlike many specialty retailers that rely on a single banner, the company generates revenues through Urban Outfitters, Anthropologie, Free People, FP Movement, its wholesale operations and the rapidly expanding Nuuly subscription platform. This diversified portfolio helped URBN post its seventh consecutive quarter of record sales and earnings, with first-quarter revenues rising 11% year over year to a record $1.5 billion.
Every retail brand reported positive comparable sales, while four of five brands generated record first-quarter revenues. Nuuly's 35% revenue growth and wholesale revenue growth of 25% further demonstrate that URBN's growth engine extends well beyond traditional retail, reducing dependence on any single fashion cycle and allowing the company to consistently capture market share across multiple consumer segments. Management believes this diversification remains one of the company's strongest competitive advantages.
Another key strength is URBN's ability to grow brands while preserving their unique identities. Free People continues to post industry-leading momentum, FP Movement is rapidly emerging as a differentiated activewear brand, Anthropologie has now delivered more than five years of positive comparable sales, and Urban Outfitters itself is regaining momentum in both North America and Europe. The Urban Outfitters brand generated 9% comparable sales growth globally, driven by double-digit new customer acquisition, strong full-price selling and successful marketing initiatives. Management also highlighted that the European business continues to gain meaningful market share despite a weak regional retail backdrop, reflecting the strength of its merchandise assortment and brand positioning.
Technology and disciplined capital allocation further strengthen URBN's long-term investment case. The company continues to invest aggressively in artificial intelligence across merchandising, personalization, logistics, product development, fraud prevention and customer service to improve productivity and accelerate decision-making. AI-powered recommendation engines, search capabilities and automated customer support are already enhancing the customer experience, while technology investments are expected to shorten product development cycles and improve inventory productivity over time.
The Case for ANFAbercrombie continues to benefit from one of the strongest brand transformations in the specialty apparel industry. The company delivered its 14th consecutive quarter of revenue growth and another record first quarter despite geopolitical disruptions in parts of Europe and the Middle East. Revenues increased to $1.1 billion, while operating income and earnings per share exceeded expectations. Growth remained broad-based across the Americas and APAC, supported by healthy customer traffic, stable conversion rates and continued pricing power. Management emphasized that both Abercrombie and Hollister continue to resonate with their respective target customers, allowing the company to maintain positive average unit retail growth while controlling promotional activity. This disciplined operating model has enabled ANF to consistently deliver profitable growth even in a volatile retail environment.
The company's two-brand strategy continues to strengthen its competitive positioning. Abercrombie has successfully evolved into an elevated lifestyle brand serving millennials and older Gen Z consumers, while Hollister maintains strong relevance among teens through fashion-forward assortments and culturally relevant marketing campaigns. Product innovation, strategic collaborations with brands such as Sperry and Kappa, expansion into categories like Abercrombie Baby & Toddler, and continued investment in larger-format stores provide multiple avenues for incremental growth.
ANF is also building a stronger long-term foundation through digital transformation and disciplined capital allocation. During the quarter, the company successfully completed its multi-year merchandising ERP implementation, creating a modern technology platform that supports faster product development, global partnerships and future channel expansion. Artificial intelligence is increasingly being embedded across forecasting, inventory planning, customer service and digital commerce to improve efficiency and enhance customer engagement.
How Does the Zacks Consensus Estimate Compare for URBN & ANF?The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2027 earnings implies year-over-year growth of 10.5%, whereas the same for fiscal 2028 indicates an uptick of 9.9%. Estimates for fiscal 2027 and 2028 have been revised upward by 0.7% and 0.8%, respectively, in the past 30 days.
EPS Estimate Trend of URBN
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Abercrombie’s fiscal 2026 and 2027 EPS suggests year-over-year growth of 7.7% and 10%, respectively. The EPS estimates have moved down by a penny to $10.62 in the past 30 days, whereas for 2027, the estimates have moved down by 10 cents to $11.69.
EPS Estimate Trend of ANF
Image Source: Zacks Investment Research
Price Performance & Valuation of URBN & ANFURBN currently trades at a forward 12-month P/E ratio of 11.42X, below the Zacks Retail – Apparel and Shoes industry average of 15.14X, suggesting the stock remains reasonably valued despite its strong operating momentum. ANF, meanwhile, trades at a lower forward P/E of 8.09x, which may appeal to value-oriented investors but also indicates the market is assigning a greater degree of uncertainty to its earnings outlook amid regional headwinds and a more concentrated two-brand portfolio.
While both retailers appear attractively valued relative to the industry average, URBN's premium to ANF is supported by its broader portfolio diversification, multiple growth engines across retail, wholesale and subscription, and a longer runway for margin expansion and international growth.
Image Source: Zacks Investment Research
This positive fundamental outlook is also reflected in recent share price performance. URBN stock has gained 16.6% over the past three months, comfortably outperforming ANF's modest 0.3% rise as well as the industry's 5.7% gain. The outperformance underscores investors' confidence in Urban Outfitters' diversified growth strategy, record operating performance, expanding market share across multiple brands and continued investments in digital capabilities, AI and its fast-growing Nuuly subscription business. By comparison, Abercrombie's muted stock performance suggests investors remain more cautious despite the company's healthy fundamentals, as it continues to navigate regional headwinds in EMEA and execute on growth initiatives across its two-brand portfolio.
Image Source: Zacks Investment Research
The VerdictBoth Urban Outfitters and Abercrombie remain fundamentally strong specialty apparel retailers with compelling long-term growth opportunities. Abercrombie has executed an impressive brand transformation, continues to deliver consistent sales growth and is investing in digital capabilities and international expansion. However, Urban Outfitters stands out with its broader and more diversified portfolio, multiple growth engines across retail, wholesale and subscription, accelerating AI initiatives and stronger earnings momentum. The company has also demonstrated superior stock performance, upward earnings estimate revisions and greater resilience through its multi-brand strategy.
URBN currently carries a Zacks Rank #2 (Buy), whereas ANF has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.