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]

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]