Track market-moving stories before they get noisy

URBN is riding strong Free People and FP Movement demand, improving brand execution and Nuuly growth to support continued expansion in fiscal 2027.

Urban Outfitters, Inc. (NASDAQ: URBN - Get Free Report) Director Harry Cherken, Jr. sold 5,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $87.06, for a total transaction of $435,300.00. Following the sale, the director owned 494,315 shares in the company, valued

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.

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.05, while its industry has an average P/E of 13.14. URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80, all within the past year.

Another notable valuation metric for URBN is its 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 5.63. Over the past year, URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14.

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.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

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.

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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most 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 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 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.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus 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 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.

Momentum investors should take note of this Retail-Wholesale stock. URBN has a Momentum Style Score of B, and shares are up 4.6% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.12 to $6.20 per share. URBN boasts an average earnings surprise of +9.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, URBN should be on investors' short list.

Tricia D. Smith, Global Chief Executive Officer of the Anthropologie Group, sold 3,500 shares of Urban Outfitters, Inc. (URBN +0.27%) on September 18, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$265,825Shares sold (directly held)3,500Post-transaction shares (directly held)30,112Post-transaction value$2.26 millionTransaction value based on SEC Form 4 weighted average sale price ($75.95); post-transaction value based on September 18, 2026 market close ($75.01).

Key questionsWhat was the impact of the transaction on the executive's direct equity position?
Tricia Smith disposed of 3,500 shares, a transaction size representing 10% of the direct holdings maintained before the filing.How does the execution price compare to current valuation levels?
The weighted average execution price of $75.95 sits 2.34% above the $74.21 close as of the September 21, 2026 market close.What is the current status of the executive's remaining equity exposure?
Following the completion of this sale, the executive holds 30,112 shares directly and does not report any indirect holdings or derivative securities in this filing.Company OverviewMetricValueShare Price (as of market close 2026-09-21)$74.21Market Capitalization$6.4 billionRevenue (TTM)$6.5 billionNet Income (TTM)$569.1 millionCompany SnapshotUrban Outfitters operates a multi-brand retail and wholesale business offering apparel, home furnishings, accessories, and lifestyle products through the Anthropologie, BHLDN, Free People, Terrain, and Urban Outfitters banners, generating revenue across multiple channels.The company produces revenue through segments such as retail operations across owned and operated locations, wholesale distribution of branded merchandise to third-party retailers, and subscription services providing curated offerings to customers.Urban Outfitters targets affluent, trend-conscious consumers aged 18-45 seeking distinctive apparel, home décor, and lifestyle products, with particular strength among urban millennials and Gen Z demographics across North America and international markets.Urban Outfitters is a $6.4 billion market cap retailer operating across a diversified portfolio of lifestyle brands. The company's multi-channel distribution strategy -- encompassing physical retail, e-commerce, catalogs, and mobile platforms -- positions it to capture consumer demand across both direct-to-consumer and wholesale channels.

The company's differentiated brand architecture allows it to serve distinct customer segments while maintaining operational leverage and cross-selling opportunities across its portfolio.

What this transaction means for investorsThe September 18 sale of Urban Outfitters stock by the company's CEO of its Anthropologie Group division, Tricia Smith, took place after a 5% one-year return. Her sale at a weighted average price of $75.95 was well above the 52-week low of $59.54, and suggests Smith's discretionary transaction was intended to capitalize on the share price increase.

Smith selling 10% of her direct holdings is on the large side, and does not instill investor confidence in the future of Urban Outfitters shares. The move is particularly relevant at this time, given the holiday shopping season is coming up in the fourth quarter, and that's when sales usually increase.

That said, Smith retains over 30,000 directly-held shares. This is a significant equity stake, and ensures here continued alignment with shareholder interests.

Urban Outfitters is doing well. In the company's fiscal second quarter, ended July 31, its revenue hit a record $1.7 billion, representing a 10% year-over-year increase.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Urban Outfitters. The Motley Fool has a disclosure policy.

Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Urban Outfitters (URBN - Free Report) and Ermenegildo Zegna N.V. (ZGN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Urban Outfitters and Ermenegildo Zegna N.V. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 12.17, while ZGN has a forward P/E of 28.18. We also note that URBN has a PEG ratio of 1.18. 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 3.34.

Another notable valuation metric for URBN is its P/B ratio of 2.26. 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 4.14.

Based on these metrics and many more, URBN holds a Value grade of A, while ZGN has a Value grade of D.

URBN has seen stronger estimate revision activity and sports more attractive valuation metrics than ZGN, so it seems like value investors will conclude that URBN is the superior option right now.

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.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

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.

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 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 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 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.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

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.

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.

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 #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. URBN has a Growth Style Score of B, forecasting year-over-year earnings growth of 14% for the current fiscal year.

For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $6.20 per share. URBN boasts an average earnings surprise of +9.7%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, URBN should be on investors' short list.

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 includes access to the Zacks Style Scores as well.

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 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 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 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.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% 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.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

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.

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 #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 12.1; 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 $0.12 to $6.20 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.

For Immediate ReleaseChicago, IL – September 16, 2026 – Today, Zacks Equity as Urban Outfitters, Inc. (URBN - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) , Victoria's Secret & Co. (VSXY - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report)

Industry: Retail Apparel

Link: https://www.zacks.com/commentary/2989605/4-retail-apparel-and-shoe-stocks-investors-should-keep-on-their-radar

The Retail - Apparel And Shoes industry is navigating a complex and uneven macroeconomic backdrop, characterized by resilient but increasingly value-conscious consumer demand. A still-supportive labor market and steady wage growth continue to underpin discretionary spending, but persistent inflationary pressures, higher living costs and still-elevated borrowing costs are prompting shoppers to be more selective. Retailers are responding with tighter inventory management, disciplined pricing and increased emphasis on operational efficiency. Meanwhile, tariff-related pressures, higher sourcing and transportation costs and broader input-cost volatility remain important considerations for margins.

Growth opportunities remain tied to lifestyle-driven categories, evolving fashion trends and consumers’ continued preference for comfort, versatility and newness. Athleisure, casualwear and fashion-forward assortments remain important traffic drivers, particularly as younger consumers respond rapidly to emerging trends and social-media-led influences. 

Against this backdrop, brand relevance, product innovation and fresh assortments are critical to sustaining customer engagement and supporting full-price selling. At the same time, investments in e-commerce, omnichannel capabilities, loyalty programs and personalized marketing are helping retailers improve shopping convenience, strengthen customer relationships and capture demand across physical and digital channels.

Against this backdrop, the industry outlook remains cautiously optimistic, with growth expected to be selective, favoring companies — Urban Outfitters, Inc., Abercrombie & Fitch Co., Victoria's Secret & Co. and Boot Barn Holdings, Inc.  — that can effectively balance value, differentiation and omnichannel execution.

About the IndustryThe Retail - Apparel & Shoes industry encompasses the manufacturing, distribution and retailing of clothing, footwear and accessories. Various factors, including fashion trends, consumer spending habits, economic dynamics and seasonal variations, influence the industry. Companies within the industry range from global apparel giants to domestic brands, each targeting specific market segments. The industry presents both opportunities and challenges. 

On one hand, it demands continuous product innovation, brand distinctiveness and effective marketing to attract customers. On the other hand, fierce competition and price sensitivity pose hurdles. Technological advancements and the rise of online retail have revolutionized the industry, with consumers increasingly seeking convenience and personalized shopping experiences.

4 Key Trends to Watch in the IndustryProduct Newness and Brand Relevance to Drive Demand: Consumer spending remains resilient but uneven, with shoppers increasingly selective as higher everyday costs and economic uncertainty reinforce value consciousness. In this environment, apparel and footwear retailers are leaning on product newness, stronger core franchises and fashion-led assortments to create urgency without depending heavily on discounts. Frequent innovation, refreshed silhouettes, seasonal color, comfort-focused products and occasion-based merchandise are helping sustain engagement.

Inventory Discipline and Full-Price Selling to Support Margins: Margin protection is becoming increasingly tied to inventory discipline rather than broad-based price increases. Retailers are keeping inventories closely aligned with demand, using read-and-react replenishment, improving product turns and reducing exposure to slow-moving merchandise. Better assortment accuracy is supporting regular-price selling and allowing companies to pull back on promotional activity. 

At the same time, tariffs, elevated freight costs and fuel-related transportation expenses remain important cost pressures. As consumers stay price sensitive, retailers will need to balance selective pricing with sourcing efficiencies, vendor negotiations and tighter supply-chain execution to protect merchandise margins.

Acceleration of Omnichannel and Digital Engagement: The distinction between stores and digital channels continues to blur. Stores are increasingly serving as fulfillment points, brand showcases and customer-service hubs, while digital platforms support product discovery, convenience and repeat engagement. Social-first marketing, apps, personalized recommendations and emerging artificial-intelligence tools are being used to improve customer acquisition, retention and merchandising decisions. Capabilities such as buy online, pick up in store, fast delivery and easy returns are becoming central to customer retention.

Channel and Category Diversification: Retailers are broadening their growth engines by expanding selectively across stores, categories and distribution channels. Partnerships, collaborations, wholesale relationships and adjacent product extensions can introduce brands to new audiences while creating additional reasons for existing customers to engage. 

International expansion and alternative models such as rental or subscription can also diversify demand and reduce reliance on a single customer or channel. In a mixed retail environment, disciplined expansion into complementary categories and channels can support market share gains.

Zacks Industry Rank Indicates Bright ProspectsThe Zacks Retail - Apparel And Shoes industry is a group within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #81, which places it in the top 33% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. 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. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.

Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimate has risen 13.8%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry vs. Broader MarketThe Zacks Retail - Apparel And Shoes industry has underperformed both the broader Zacks Retail-Wholesale sector and the Zacks S&P 500 composite over the past year.

The industry has declined 13.8% over this period against the S&P 500’s growth of 16.7%. The broader sector has fallen 5.4% during the said period.

Industry's Current ValuationBased on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing retail stocks, the industry is currently trading at 12.18X compared with the S&P 500’s 19.84X and the sector’s 21.60X.

Over the last five years, the industry has traded as high as 20.81X and as low as 10.32X, with the median being at 16.07X.

4 Stocks Worth ConsideringUrban Outfitters: URBN continues to demonstrate impressive operational resilience and portfolio strength across Urban Outfitters, Free People, FP Movement, Anthropologie and Nuuly, supporting record business performance. Nuuly is emerging as a profitable growth engine, while FP Movement offers meaningful store and market share expansion potential, and the core brands continue to benefit from strong customer engagement and product execution. 

Investments in logistics automation, store expansion and AI should further improve scalability and operating efficiency. With solid full-price selling dynamics and multi-channel expansion, URBN remains well-positioned to drive long-term enterprise value.

The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 9.3% and 13.2%, respectively, from the year-ago period. This leading lifestyle products and services company has an average trailing four-quarter earnings surprise of 9.7%. Shares of this Zacks Rank #2 (Buy) company have risen 9.5% over the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Abercrombie & Fitch: Abercrombie & Fitch continues to benefit from strong brand relevance across Abercrombie and Hollister, with healthy customer response, disciplined full-price selling and balanced momentum across categories and regions. The company is broadening its addressable market through partnerships, licensing, footwear, accessories and expanded distribution, while investments in digital capabilities and AI should support greater efficiency and customer engagement. Its strong profitability, cash generation and disciplined inventory management provide a solid foundation for continued investment in growth.

This global, digitally led, omnichannel specialty retailer of apparel and accessories has a trailing four-quarter earnings surprise of 13.6%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS calls for growth of 4.8% and 15.8%, respectively, from the year-ago period. Shares of this Zacks Rank #2 company have surged 62.2% over the past year.

Boot Barn Holdings: Boot Barn’s growth story is supported by a differentiated position in Western and workwear, strong execution in the work business and a substantial runway for store expansion. Its stores-first omnichannel model is strengthening customer engagement while improving inventory availability and fulfillment economics, and the company continues to benefit from disciplined merchandising and full-price selling. 

Buying economies, supply-chain efficiencies and sourcing initiatives provide additional support for merchandise margins as the business scales. With a strong new-store pipeline and expanding omnichannel capabilities, BOOT remains well positioned to extend its market leadership and deliver sustained profitable growth.

The nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories has an average trailing four-quarter earnings surprise of 11.4%. The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 15.7% and 22.6%, respectively, from the year-ago period. Shares of this Zacks Rank #2 company have declined 20.4% over the past year.

Victoria’s Secret: Victoria’s Secret is gaining traction under its Path to Potential strategy as stronger product, sharper brand identities and more culturally relevant storytelling drive customer growth and market-share gains. Bra innovation is reinforcing the core Victoria’s Secret franchise, while renewed momentum at PINK and continued strength in Beauty provide additional growth engines. The company is also improving the quality of sales through greater regular-price selling, while digital-first marketing, customer engagement initiatives and international expansion are broadening its reach.

This specialty retailer of women's intimate and other apparel and beauty products has an average trailing four-quarter earnings surprise of 48.9%. The Zacks Consensus Estimate for VSXY’s current financial-year sales and EPS suggests growth of 9.5% and 56.3%, respectively, from the year-ago period. Shares of this Zacks Rank #3 (Hold) company have surged 183.6% over the past year.

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The Retail - Apparel And Shoes industry is navigating a complex and uneven macroeconomic backdrop, characterized by resilient but increasingly value-conscious consumer demand. A still-supportive labor market and steady wage growth continue to underpin discretionary spending, but persistent inflationary pressures, higher living costs and still-elevated borrowing costs are prompting shoppers to be more selective. Retailers are responding with tighter inventory management, disciplined pricing and increased emphasis on operational efficiency. Meanwhile, tariff-related pressures, higher sourcing and transportation costs and broader input-cost volatility remain important considerations for margins.

Growth opportunities remain tied to lifestyle-driven categories, evolving fashion trends and consumers’ continued preference for comfort, versatility and newness. Athleisure, casualwear and fashion-forward assortments remain important traffic drivers, particularly as younger consumers respond rapidly to emerging trends and social-media-led influences. Against this backdrop, brand relevance, product innovation and fresh assortments are critical to sustaining customer engagement and supporting full-price selling. At the same time, investments in e-commerce, omnichannel capabilities, loyalty programs and personalized marketing are helping retailers improve shopping convenience, strengthen customer relationships and capture demand across physical and digital channels.

Against this backdrop, the industry outlook remains cautiously optimistic, with growth expected to be selective, favoring companies — Urban Outfitters, Inc. (URBN - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) , Victoria's Secret & Co. (VSXY - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) — that can effectively balance value, differentiation and omnichannel execution.

About the Industry The Retail - Apparel & Shoes industry encompasses the manufacturing, distribution and retailing of clothing, footwear and accessories. Various factors, including fashion trends, consumer spending habits, economic dynamics and seasonal variations, influence the industry. Companies within the industry range from global apparel giants to domestic brands, each targeting specific market segments. The industry presents both opportunities and challenges. On one hand, it demands continuous product innovation, brand distinctiveness and effective marketing to attract customers. On the other hand, fierce competition and price sensitivity pose hurdles. Technological advancements and the rise of online retail have revolutionized the industry, with consumers increasingly seeking convenience and personalized shopping experiences.

4 Key Trends to Watch in the Industry Product Newness and Brand Relevance to Drive Demand: Consumer spending remains resilient but uneven, with shoppers increasingly selective as higher everyday costs and economic uncertainty reinforce value consciousness. In this environment, apparel and footwear retailers are leaning on product newness, stronger core franchises and fashion-led assortments to create urgency without depending heavily on discounts. Frequent innovation, refreshed silhouettes, seasonal color, comfort-focused products and occasion-based merchandise are helping sustain engagement.

Inventory Discipline and Full-Price Selling to Support Margins: Margin protection is becoming increasingly tied to inventory discipline rather than broad-based price increases. Retailers are keeping inventories closely aligned with demand, using read-and-react replenishment, improving product turns and reducing exposure to slow-moving merchandise. Better assortment accuracy is supporting regular-price selling and allowing companies to pull back on promotional activity. At the same time, tariffs, elevated freight costs and fuel-related transportation expenses remain important cost pressures. As consumers stay price sensitive, retailers will need to balance selective pricing with sourcing efficiencies, vendor negotiations and tighter supply-chain execution to protect merchandise margins.

Acceleration of Omnichannel and Digital Engagement: The distinction between stores and digital channels continues to blur. Stores are increasingly serving as fulfillment points, brand showcases and customer-service hubs, while digital platforms support product discovery, convenience and repeat engagement. Social-first marketing, apps, personalized recommendations and emerging artificial-intelligence tools are being used to improve customer acquisition, retention and merchandising decisions. Capabilities such as buy online, pick up in store, fast delivery and easy returns are becoming central to customer retention.

Channel and Category Diversification: Retailers are broadening their growth engines by expanding selectively across stores, categories and distribution channels. Partnerships, collaborations, wholesale relationships and adjacent product extensions can introduce brands to new audiences while creating additional reasons for existing customers to engage. International expansion and alternative models such as rental or subscription can also diversify demand and reduce reliance on a single customer or channel. In a mixed retail environment, disciplined expansion into complementary categories and channels can support market share gains.

Zacks Industry Rank Indicates Bright Prospects The Zacks Retail - Apparel And Shoes industry is a group within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #81, which places it in the top 33% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. 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. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.

Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimate has risen 13.8%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry vs. Broader Market The Zacks Retail - Apparel And Shoes industry has underperformed both the broader Zacks Retail-Wholesale sector and the Zacks S&P 500 composite over the past year.

The industry has declined 13.8% over this period against the S&P 500’s growth of 16.7%. The broader sector has fallen 5.4% during the said period.

One-Year Price Performance

Industry's Current Valuation Based on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing retail stocks, the industry is currently trading at 12.18X compared with the S&P 500’s 19.84X and the sector’s 21.60X.

Over the last five years, the industry has traded as high as 20.81X and as low as 10.32X, with the median being at 16.07X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

4 Stocks Worth Considering Urban Outfitters: URBN continues to demonstrate impressive operational resilience and portfolio strength across Urban Outfitters, Free People, FP Movement, Anthropologie and Nuuly, supporting record business performance. Nuuly is emerging as a profitable growth engine, while FP Movement offers meaningful store and market share expansion potential, and the core brands continue to benefit from strong customer engagement and product execution. Investments in logistics automation, store expansion and AI should further improve scalability and operating efficiency. With solid full-price selling dynamics and multi-channel expansion, URBN remains well-positioned to drive long-term enterprise value.

The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 9.3% and 13.2%, respectively, from the year-ago period. This leading lifestyle products and services company has an average trailing four-quarter earnings surprise of 9.7%. Shares of this Zacks Rank #2 (Buy) company have risen 9.5% over the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: URBN

Abercrombie & Fitch: Abercrombie & Fitch continues to benefit from strong brand relevance across Abercrombie and Hollister, with healthy customer response, disciplined full-price selling and balanced momentum across categories and regions. The company is broadening its addressable market through partnerships, licensing, footwear, accessories and expanded distribution, while investments in digital capabilities and AI should support greater efficiency and customer engagement. Its strong profitability, cash generation and disciplined inventory management provide a solid foundation for continued investment in growth.

This global, digitally led, omnichannel specialty retailer of apparel and accessories has a trailing four-quarter earnings surprise of 13.6%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS calls for growth of 4.8% and 15.8%, respectively, from the year-ago period. Shares of this Zacks Rank #2 company have surged 62.2% over the past year.

Price and Consensus: ANF

Boot Barn Holdings: Boot Barn’s growth story is supported by a differentiated position in Western and workwear, strong execution in the work business and a substantial runway for store expansion. Its stores-first omnichannel model is strengthening customer engagement while improving inventory availability and fulfillment economics, and the company continues to benefit from disciplined merchandising and full-price selling. Buying economies, supply-chain efficiencies and sourcing initiatives provide additional support for merchandise margins as the business scales. With a strong new-store pipeline and expanding omnichannel capabilities, BOOT remains well positioned to extend its market leadership and deliver sustained profitable growth.

The nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories has an average trailing four-quarter earnings surprise of 11.4%. The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 15.7% and 22.6%, respectively, from the year-ago period. Shares of this Zacks Rank #2 company have declined 20.4% over the past year.

Price and Consensus: BOOT

Victoria’s Secret: Victoria’s Secret is gaining traction under its Path to Potential strategy as stronger product, sharper brand identities and more culturally relevant storytelling drive customer growth and market-share gains. Bra innovation is reinforcing the core Victoria’s Secret franchise, while renewed momentum at PINK and continued strength in Beauty provide additional growth engines. The company is also improving the quality of sales through greater regular-price selling, while digital-first marketing, customer engagement initiatives and international expansion are broadening its reach.

This specialty retailer of women's intimate and other apparel and beauty products has an average trailing four-quarter earnings surprise of 48.9%. The Zacks Consensus Estimate for VSXY’s current financial-year sales and EPS suggests growth of 9.5% and 56.3%, respectively, from the year-ago period. Shares of this Zacks Rank #3 (Hold) company have surged 183.6% over the past year.

Price and Consensus: VSXY

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Urban Outfitters (URBN) and Ermenegildo Zegna N.V. (ZGN). But which of these two stocks is more attractive to value investors?

A $161 million tariff refund turned American Eagle's quarterly results into something far more complicated than a simple beat, and now investors are asking what the business actually looks like without that one-time cushion.

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Shares of American Eagle Outfitters (NYSE:AEO | AEO Price Prediction) are down 13% to $14.66 in early Thursday trading. The move follows the specialty retailer’s fiscal Q2 2026 report, released after the close on Wednesday, which leaned heavily on a one-time tariff refund. The question is whether the headline earnings beat masks softer underlying trends in the quarter.

The selling is spreading across young-adult apparel names. Abercrombie & Fitch (NYSE:ANF) stock is down 3% to $148.16, and Urban Outfitters (NASDAQ:URBN) stock is off 3% to $75.20.

Tariff Refund Flatters the Beat American Eagle Outfitters posted earnings of $0.79 per diluted share, but the quarter included a $161 million net tariff-refund benefit that carried the result. Strip out that windfall, and the underlying operating performance looks markedly softer. That’s the composition problem behind today’s move.

Brand mix deepened the concern. The Aerie unit at American Eagle Outfitters, which includes the OFFLINE activewear line, drove growth with 19% comparable sales gains, while the namesake American Eagle brand saw comparable sales decline 1%. Management now expects the namesake brand to run roughly flat for the balance of the year, versus prior expectations for low-single-digit growth in the second half, with a markdown allowance still baked into the plan.

Compounding the story, American Eagle Outfitters is redirecting marketing dollars away from the mall, campus, and soccer-ambassador awareness spend of the past year and toward digital tactics designed to close sales. Executives said advertising should start to leverage in the fourth quarter and into next year, pushing any payoff from the strategy shift down the calendar.

Peers Slip on the Read-Across Abercrombie & Fitch reported a similarly refund-inflated quarter on August 26, booking approximately $100 million in tariff refunds that added an estimated $1.75 per diluted share to Q2 fiscal 2026 earnings. Today’s slip in Abercrombie & Fitch points to renewed scrutiny of that beat’s composition as well, even after CFO Robert Ball stated the “underlying business performed above our expectations” excluding the refund.

Urban Outfitters delivered 10% revenue growth to $1.7 billion in its own late-August report, with all retail brands posting positive comps and management flagging full-price sales momentum into August. The pullback in Urban Outfitters shares today reads as a young-adult apparel category call rather than a change to the company’s own outlook.

The SPDR S&P Retail ETF (NYSEARCA:XRT) is down 0.4% while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.67%. XRT’s modified equal-weighted construction means no single holding tips the fund either way, so today’s action reads as a single-name repricing rather than a broader sector verdict.

What to Watch The debate on American Eagle Outfitters centers on whether the namesake brand can re-accelerate as marketing shifts from awareness to conversion, and whether Aerie’s high-teens comps momentum holds into the holiday quarter.

Investors can watch for signs that markdown pressure on the namesake brand eases as inventory rebalances in the third quarter. For Abercrombie & Fitch and Urban Outfitters, the question is whether today’s sympathy move fades once the next reporting cycle separates operating trends from refund optics.

Contact [email protected] for any questions or corrections.

David Moadel

David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.

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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%.

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%.

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%.

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.

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?

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.

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.

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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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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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.