Core Viewpoint - Urban Outfitters (URBN) reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing an increase from $0.69 per share a year ago, representing an earnings surprise of 16.85% [1][2] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for the last four quarters [2] - Urban Outfitters posted revenues of $1.64 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.74%, compared to $1.49 billion in the same quarter last year [2] - The company has also topped consensus revenue estimates four times over the last four quarters [2] Group 2: Stock Performance and Outlook - Urban Outfitters shares have declined approximately 4.1% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Group 3: Estimate Revisions and Rankings - The estimate revisions trend for Urban Outfitters is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $1.27 billion, and for the current fiscal year, it is $4.32 on revenues of $5.85 billion [7] Group 4: Industry Context - The Retail - Apparel and Shoes industry, to which Urban Outfitters belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Another company in the same industry, J.Jill (JILL), is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year decline of 4.4% [9]

Core Insights - Urban Outfitters, Inc. reported record net income of $402.5 million and earnings per diluted share of $4.26 for the year ended January 31, 2025, reflecting strong performance across all segments [1][14] - The company achieved total net sales of $5.55 billion for the year, a 7.7% increase compared to the previous year, driven by growth in retail, subscription, and wholesale segments [4][5] Financial Performance - For the three months ended January 31, 2025, net income was $120.3 million, with earnings per diluted share of $1.28, compared to $47.8 million and $0.50 in the same period last year [1][14] - Adjusted net income for the same quarter was $98.1 million, up from $65.8 million year-over-year, with adjusted earnings per diluted share increasing to $1.04 from $0.69 [2][14] - Gross profit for the three months ended January 31, 2025, increased by 21.5% to $527.7 million, with a gross profit rate of 32.3%, up from 29.2% in the prior year [8][9] Sales Breakdown - Total company net sales for the three months ended January 31, 2025, reached $1.64 billion, a 10.1% increase from the previous year [3][4] - Retail segment net sales increased by 6.3%, with comparable retail segment net sales rising by 5.1%, driven by digital channel sales growth [3][4] - Subscription segment net sales surged by 78.4%, primarily due to a 53.5% increase in average active subscribers [3][4] Segment Performance - For the year ended January 31, 2025, retail segment net sales increased by 4.7%, with comparable sales up 3.4% [4][5] - Wholesale segment net sales grew by 15.5%, driven by a 17.9% increase in Free People wholesale sales [4][5] - The company opened 57 new retail locations and closed 30 during the year, indicating a strategic expansion despite some closures [16] Inventory and Expenses - Total inventory as of January 31, 2025, increased by $70.9 million, or 12.9%, compared to the previous year, with retail segment inventory up 10.1% [10] - Selling, general and administrative expenses for the year increased by $113.7 million, or 8.5%, reflecting higher marketing and payroll expenses [12][11] Tax and Share Repurchase - The effective tax rate for the year ended January 31, 2025, was 19.5%, down from 24.6% the previous year, primarily due to a tax benefit from the release of income tax reserves [13] - The company repurchased 1.2 million shares for approximately $52 million during the year, with 18 million shares remaining under the repurchase program [15]

Core Insights - Urban Outfitters, Inc. reported record net income of $402.5 million and earnings per diluted share of $4.26 for the year ended January 31, 2025, reflecting strong performance across all segments [1][15][4]. Financial Performance - For the three months ended January 31, 2025, net income was $120.3 million, with earnings per diluted share at $1.28, compared to $47.8 million and $0.50 in the same period of 2024 [1][15]. - Adjusted net income for the same quarter was $98.1 million, up from $65.8 million year-over-year, with adjusted earnings per diluted share increasing from $0.69 to $1.04 [2][15]. - Total company net sales for the three months ended January 31, 2025, reached $1.64 billion, a 10.1% increase from the previous year [3][4]. Segment Performance - Retail segment net sales increased by 6.3% for the quarter, with comparable sales up 5.1%, driven by digital channel growth [3][4]. - Subscription segment net sales surged by 78.4% for the quarter, primarily due to a 53.5% increase in average active subscribers [3][4]. - Wholesale segment net sales rose by 26.2%, largely attributed to a 27.0% increase in Free People wholesale sales [3][4]. Yearly Overview - For the year ended January 31, 2025, total company net sales were $5.55 billion, a 7.7% increase from the previous year [4][15]. - Retail segment net sales grew by 4.7%, with comparable sales up 3.4% [4][15]. - Subscription segment net sales increased by 60.4% year-over-year, driven by a 51.3% rise in average active subscribers [4][15]. Profitability Metrics - Gross profit for the three months ended January 31, 2025, increased by 21.5% to $527.7 million, with a gross profit rate of 32.3%, up from 29.2% in the prior year [8][9]. - For the year, gross profit rose by 12.3% to $1.93 billion, with a gross profit rate of 34.7%, compared to 33.3% in the previous year [9][10]. Inventory and Expenses - Total inventory as of January 31, 2025, increased by $70.9 million, or 12.9%, compared to the previous year [11]. - Selling, general and administrative expenses for the three months ended January 31, 2025, rose by 8.6% to $402.4 million, but leveraged as a percentage of net sales [12][13]. Shareholder Actions - The company repurchased 1.2 million shares for approximately $52 million during the twelve months ended January 31, 2025, with 18 million shares remaining under the repurchase program [16]. Store Operations - During the twelve months ended January 31, 2025, the company opened 57 new retail locations and closed 30, indicating a strategic expansion despite some closures [17].

Core Viewpoint - Urban Outfitters (URBN) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with short-term stock price movements [3][5]. - For Urban Outfitters, the expected earnings for the fiscal year ending January 2025 is $3.92 per share, reflecting a 20.6% increase from the previous year [7]. Analyst Sentiment and Market Position - Analysts have raised their earnings estimates for Urban Outfitters, with a 10.3% increase in the Zacks Consensus Estimate over the past three months [7]. - The Zacks Rank system maintains a balanced approach, with only the top 5% of stocks receiving a 'Strong Buy' rating, positioning Urban Outfitters favorably within this group [8][9]. Investment Implications - The upgrade to Zacks Rank 1 suggests that Urban Outfitters is likely to experience upward price movement due to improved earnings outlook and investor sentiment [4][9].

Core Insights - Urban Outfitters Inc. (URBN) is experiencing strong upward momentum, trading above its 50 and 200-day simple moving averages, indicating positive market sentiment and investor confidence in its financial stability and growth potential [1][2][22] Stock Performance - URBN ended the last trading session at $56.60, above its 50-day SMA of $54.02 and 200-day SMA of $43.51, highlighting a continued uptrend [2] - The stock is currently trading 7.1% below its 52-week high of $60.90, reached on January 22, 2025, with a 45.4% gain over the past three months compared to the industry’s 7% growth [3][4] Growth Drivers - Key brands such as Anthropologie and Free People are significant contributors to URBN's success, with strong sales across physical and online platforms [9][11] - Nuuly, the rental service, is on a growth trajectory with a 55% increase in net sales, supported by a 53% rise in active subscribers [10][14] - The Retail segment recorded a 10% year-over-year increase in total net sales, driven by strong digital performance [13] Financial Performance - The Wholesale segment saw net sales climb 29% year-over-year, primarily due to increased Free People wholesale sales [15] - URBN's current price-to-sales (P/S) multiple is 0.89, below the industry average of 1.78 and the sector average of 1.64, indicating potential for attractive entry points for investors [16] Earnings Estimates - Analysts have revised earnings estimates upward, with the current quarter's estimate at $0.89 and the next quarter at $0.77, reflecting year-over-year growth of 29% and 11.6%, respectively [19][20] - The Zacks Consensus Estimate for current and next quarter's sales is $1.63 billion and $1.27 billion, implying year-over-year growth of 9.4% and 5.8% [20] Investment Appeal - URBN presents a strong investment opportunity driven by robust sales growth, strategic expansion, and solid financial performance, with a Zacks Rank of 1 (Strong Buy) [22]

Core Viewpoint - Urban Outfitters (URBN) is well-positioned to continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates significantly in recent quarters [1][3]. Earnings Performance - For the most recent quarter, Urban Outfitters reported earnings of $1.10 per share, exceeding the expected $0.85 per share by 29.41%. In the previous quarter, the company reported $1.24 per share against an estimate of $0.98 per share, resulting in a surprise of 26.53% [2]. Earnings Estimates - There has been a favorable change in earnings estimates for Urban Outfitters, with a positive Zacks Earnings ESP of +2.99%, indicating that analysts have recently become more optimistic about the company's earnings prospects [3][6]. Predictive Metrics - The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy) suggests a high likelihood of another earnings beat for Urban Outfitters, as stocks with this combination have a nearly 70% success rate in beating consensus estimates [4][6]. Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which are often more accurate [5]. Investment Strategy - Investors are encouraged to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions, utilizing tools like the Earnings ESP Filter to identify promising stocks [7].

Valuation and Market Performance - Urban Outfitters Inc. (URBN) is currently trading at a low price-to-earnings (P/E) multiple of 14.15X, below the industry average of 19.89X and the sector average of 26.15X, indicating potential for investors [1][2] - The stock closed at $55.42, above its 50-day and 200-day simple moving averages of $52.21 and $43.05, respectively, suggesting a positive market sentiment and investor confidence [3][4] - URBN shares are 9% below their 52-week high of $60.90, with a 53.6% gain over the past three months, outperforming the industry growth of 26.7% and the S&P 500's growth of 7.1% [5] Growth Drivers - Anthropologie is a key driver of URBN's success, showing strong sales in both physical and online stores, supported by innovative products and targeted marketing [8] - Nuuly, the rental service, is experiencing growth with a rising subscriber base and strategic collaborations, indicating a strong position in the expanding rental market [9] - Free People has shown strong performance in retail and wholesale segments, particularly with its FP Movement line, which achieved a 23% year-over-year growth in comparable net sales [10][13] Sales and Financial Performance - URBN reported a 10% year-over-year increase in total net sales for the two months ending December 31, 2024, with the Retail segment's net sales rising 7% and comparable sales increasing by 6% [12] - Within the Retail segment, Anthropologie and Free People saw comparable net sales increases of 10% and 9%, respectively, while Urban Outfitters experienced a decline of 4% [13] - The Wholesale segment's net sales climbed 29% year-over-year, driven by increased Free People wholesale sales [14] Earnings Estimates - Analysts have revised the Zacks Consensus Estimate for URBN's earnings per share upward, with the fourth-quarter estimate increasing by 2 cents to 89 cents and the current fiscal year estimate advancing by 3 cents to $3.92 per share, indicating year-over-year growth of 29% and 20.6% respectively [15][18]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Urban Outfitters (URBN) Analysis - Urban Outfitters has shown a price increase of 4.2% over the past four weeks, indicating growing investor interest [4] - The stock has gained 62.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - URBN has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - URBN is trading at a Price-to-Sales ratio of 0.99, indicating it is reasonably valued at present [7] Group 3: Investment Opportunities - URBN is highlighted as a strong candidate for investment, with potential for further price appreciation [8] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting a broader range of investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, providing various strategies to identify winning stocks [9]

Core Viewpoint - Urban Outfitters (URBN) is showing potential for investment due to its recent technical movements and positive earnings revisions [1][3]. Technical Analysis - URBN has crossed above the 20-day moving average, indicating a short-term bullish trend [1][2]. - The stock has increased by 10.8% over the past four weeks, suggesting upward momentum [3]. Earnings Estimates - There have been no lowered earnings estimates for URBN in the past two months, while 6 estimates have been raised for the current fiscal year [3]. - The consensus earnings estimate for URBN has also increased, reinforcing the bullish outlook [3]. Investment Outlook - Given the key technical level and positive earnings revisions, URBN may present further gains in the near future [4].

Urban Outfitters Inc. (URBN) released its fiscal 2024 holiday sales results last Monday, reigniting discussions about the stock’s prospects. Investors are confronted with an important question: Should they increase their investment, hold their current position or sell their shares? The holiday sales performance for Urban Outfitters demonstrates that its diverse portfolio of brands, strong e-commerce growth and successful expansion strategies are paying off. However, the decline in sales at URBN's core brand ...