Urban Outfitters (URBN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices - - has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investor ...

Urban Outfitters Inc. (URBN) shares are currently trading 10.6% below its 52-week high of $61.16 attained on March 3, 2025, making investors contemplate their next moves. In the past six months, URBN stock has gained 55.3% against the Zacks Retail-Apparel and Shoes industry’s 4.3% decline. The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 9.1% and 3.8%, respectively, during the same per ...

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Company Performance - Urban Outfitters (URBN) shares have increased by 9.7% over the past month, reaching a new 52-week high of $61.16 [1] - The company has gained 7.3% since the beginning of the year, outperforming the Zacks Retail-Wholesale sector's 2.4% increase and the Zacks Retail - Apparel and Shoes industry's decline of 13.7% [1] Earnings and Revenue Expectations - Urban Outfitters has consistently exceeded earnings estimates, reporting EPS of $1.04 against a consensus estimate of $0.89 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $4.51 per share on revenues of $5.88 billion, reflecting an 11.08% increase in EPS and a 5.94% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $4.91 per share on revenues of $6.18 billion, indicating year-over-year changes of 8.83% and 5.17%, respectively [3] Valuation Metrics - Urban Outfitters has a Value Score of A, along with Growth and Momentum Scores of A, resulting in a combined VGM Score of A [6] - The stock trades at 13.1X current fiscal year EPS estimates, below the peer industry average of 14.8X, and at 10.9X on a trailing cash flow basis compared to the peer group's average of 7.6X [7] - The PEG ratio stands at 1.5, which does not place the company among the top tier from a value perspective [7] Zacks Rank - Urban Outfitters holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, making it a favorable choice for investors [8] - The recommendation is to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which Urban Outfitters meets [8] Industry Comparison - The Retail - Apparel and Shoes industry is positioned in the top 26% of all industries, indicating favorable conditions for both Urban Outfitters and its peer, Tapestry, Inc. [11] - Tapestry, Inc. has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $4.91 on revenues of $6.87 billion for the current fiscal year [10]

J.P. Morgan analyst Matthew R. Boss reiterated a Neutral rating on the shares of Urban Outfitters Inc URBN and raised the price target from $54.00 to $56.00.URBN reported adjusted EPS of $1.04 for fourth-quarter, surpassing analysts’ expectations of $0.95. This was driven by a 16.8% year-over-year increase in gross profit, exceeding the 14% anticipated growth, supported by a 5.1% increase in same-store sales, said the analyst.Additionally, adjusted gross margin expanded by 200 basis points to 32.3%, surpass ...

Urban Outfitters, Inc. (URBN) reported impressive results for fourth-quarter fiscal 2025, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. The fourth-quarter results showcased record sales and profits, fueled by strong performance across the Retail, Subscription and Wholesale segments. Notably, four of the company’s five brands delivered exceptional growth.URBN’s Quarterly Performance: Key Metrics and InsightsThis lifestyle specialty retailer delivered earnin ...

Core Insights - Urban Outfitters reported revenue of $1.64 billion for the quarter ended January 2025, reflecting a 10.1% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.62 billion by 0.74% [1] - The company's EPS was $1.04, up from $0.69 in the same quarter last year, resulting in an EPS surprise of 16.85% against the consensus estimate of $0.89 [1] Financial Performance - Urban Outfitters' net sales by brand included $360.19 million for Urban Outfitters, $743.03 million for Anthropologie, $410.62 million for Free People, $112.52 million for Nuuly, and $9.76 million for Menus & Venues, with respective year-over-year changes of -3.3%, +9.4%, +13.4%, +78.4%, and +11.4% [4] - Retail operations net sales totaled $1.46 billion, exceeding the average estimate of $1.44 billion and showing a year-over-year increase of 6.3% [4] - Wholesale operations net sales reached $68.60 million, slightly above the average estimate of $68.34 million, marking a year-over-year growth of 26.2% [4] Store Metrics - The number of stores for Free People was 230, Urban Outfitters had 255, and Anthropologie had 239, with all figures close to analyst estimates [4] - Comparable store sales for Urban Outfitters showed a year-over-year decline of 3.5%, better than the average estimate of -4.4% [4] Market Performance - Urban Outfitters' shares have returned -5% over the past month, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Urban Outfitters, Inc. FY'25 Q4 RESULTS Introduction Urban Outfitters, Inc. "URBN" is providing fiscal 2025 fourth quarter commentary ahead of our earnings call scheduled for February 26th at 5:00pm. We remind you that any forward-looking statements made in this commentary are subject to our safe harbor statement found in our SEC filings. Our fourth quarter earnings release and related financial information are available on our website, www.urbn.com. As used in this document, unless otherwise defined, "Anth ...

Financial Data and Key Metrics Changes - Total URBN sales grew by 9%, reaching a Q4 record of $1.6 billion, with record fourth-quarter sales from four of the five brands [11][12] - Gross profit increased by 17% to $528 million, with the gross profit rate improving by over 200 basis points to 32.3% [13][14] - Operating income rose by 54% to $125 million, while net income increased by 49% to $98 million or $1.04 per diluted share [15][42] Business Line Data and Key Metrics Changes - Anthropologie achieved an 8% Retail segment comp, with double-digit increases in the digital channel and mid-single-digit increases in the store channel [16][19] - Free People saw total retail and wholesale segment sales increase by 13%, driven by an 8% Retail segment comp and a 27% increase in wholesale revenues [19][21] - Urban Outfitters recorded a 3% decline in Retail segment comp, with improvements in merchandise margin rate due to lower markdowns [23][24] Market Data and Key Metrics Changes - The Wholesale segment experienced a 26% revenue increase, primarily due to full-price sales at Free People [12] - Nuuly added over 20,000 average active subscribers, ending the quarter with 300,000 average active subscribers, leading to a 56% increase in brand revenue [29][30] Company Strategy and Development Direction - The company plans to open approximately 58 new stores and close about 19 stores during fiscal year 2026, focusing on retail store expansion and technology investments [38][39] - Management emphasized a renewed focus on growth for Urban Outfitters, with strategies to improve customer acquisition and drive profitable full-priced sales [25][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2026, expecting mid-single-digit sales growth driven by low single-digit retail segment comps [32][33] - The company noted that customer demand remains consistent, with strong performance in key categories and a positive outlook for spring assortments [44][103] Other Important Information - The company ended FY25 with slightly elevated inventory levels, planning to increase product turns in the coming year [36] - Capital expenditures for FY26 are planned at approximately $240 million, with a focus on retail store expansion and technology investments [37] Q&A Session Summary Question: Did you hit the goal to improve IMU by 500 basis points? - Management acknowledged progress but fell short of the goal, indicating continued efforts for improvement [54] Question: Can you discuss the mix of branded versus private brands? - Urban Outfitters is focusing on growing national brands, while Anthropologie has achieved 70% owned brand penetration in women's apparel [60][61] Question: What notable trends across categories do you see emerging this year? - Management noted strong sales in bottoms, outerwear, and activewear, with expectations for low to mid-single-digit comps across brands [66][67] Question: What is the status of Urban Outfitters' transformation strategy? - Management reported good progress on the five pillars of transformation, focusing on customer engagement and improved product assortment [73][78] Question: What are the real estate plans for Anthropologie and Urban Outfitters? - Anthropologie plans to ramp up store growth due to brand momentum, while Urban Outfitters is rationalizing its footprint to improve profitability [90][94] Question: What is the outlook for Urban Outfitters' profitability? - Management indicated that Urban Outfitters needs to return to positive comps to leverage occupancy costs and improve profitability [142] Question: What is the long-term revenue potential for Urban Outfitters? - Management is optimistic about Urban Outfitters' revenue growth potential, emphasizing the need for continued improvement in product assortment and customer engagement [146]

Financial Data and Key Metrics Changes - Total URBN sales grew by 9%, reaching a Q4 record of $1.6 billion, with record fourth-quarter sales for four of the five brands [11][12] - Gross profit increased by 17% to $528 million, with the gross profit rate improving by over 200 basis points to 32.3% [13] - Operating income rose by 54% to $125 million, while net income increased by 49% to $98 million or $1.04 per diluted share [15] Business Line Data and Key Metrics Changes - Anthropologie achieved an 8% Retail segment comp, with double-digit increases in the digital channel and mid-single-digit increases in the store channel [16] - Free People saw total retail and wholesale segment sales increase by 13%, driven by an 8% Retail segment comp and a 27% increase in wholesale revenues [19] - Urban Outfitters recorded a 3% decline in Retail segment comp, with improvements in merchandise margin rate due to lower markdowns [23][24] Market Data and Key Metrics Changes - The Retail segment comp for URBN was driven by a high single-digit DTC channel comp and a low single-digit store comp [12] - Nuuly delivered a 56% increase in brand revenue, ending the quarter with 300,000 average active subscribers [29][30] - The Wholesale segment saw a 26% revenue increase, primarily due to full-price sales at Free People [12] Company Strategy and Development Direction - The company plans to open approximately 58 new stores and close about 19 stores during fiscal year 2026, focusing on growth in FP Movement, Free People, and Anthropologie [38] - The Urban Outfitters brand is pivoting to a renewed focus on growth, emphasizing regular price growth and customer acquisition [25][26] - The company aims to improve gross profit margins by approximately 50 to 100 basis points for the first quarter and full year of fiscal 2026 [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, expecting mid-single-digit sales growth driven by low single-digit retail segment comps [32] - The company noted that customer demand remains consistent, with strong revenue gains across all business segments [41][45] - Management highlighted the importance of evolving product assortments and marketing strategies to attract new customers [73][76] Other Important Information - The company ended FY25 with slightly elevated inventory levels, planning to increase product turns in the coming year [36] - Capital expenditures for FY26 are planned at approximately $240 million, with a focus on retail store expansion and technology investments [37] - The company plans to repurchase shares to offset any dilution that may occur in FY26, contingent on market conditions [39] Q&A Session Summary Question: Did you hit the goal to improve IMU by 500 basis points? - Management acknowledged progress but fell short of the goal, indicating continued efforts for improvement [54] Question: Can you discuss the mix of branded versus private brands? - Urban Outfitters is focusing on growing national brands, while Anthropologie has achieved 70% owned brand penetration in women's apparel [60][61] Question: What notable trends across categories do you see emerging this year? - Management noted strong sales in bottoms, outerwear, and activewear, with expectations for continued growth in these categories [66] Question: Where are you on the Urban Outfitters transformation strategy? - Management reported good progress on customer focus, product assortment, and inventory management, with ongoing efforts to improve profitability [73][78] Question: What are the real estate plans for Anthropologie and Urban Outfitters? - Anthropologie plans to ramp up store growth due to brand momentum, while Urban Outfitters is rationalizing its footprint to improve profitability [90][94] Question: What is the outlook for Urban Outfitters' profitability? - Management indicated that Urban Outfitters needs to return to positive comps to leverage improvements in occupancy and profitability [142]