Is Urban Outfitters Set to Extend Its Multi-Brand Momentum in FY26?

Core Insights - Urban Outfitters Inc. (URBN) reported record second-quarter fiscal 2026 results, with sales rising 11.3% year over year to $1.5 billion, driven by positive comparable sales across all brands in its portfolio [1][9] - The company anticipates high-single-digit sales growth in the fiscal third quarter and aims for 100 basis points of gross margin expansion in fiscal 2026 despite tariff pressures [6] Brand Performance - Free People achieved a 14% increase in revenues, supported by a 6.7% retail comparable sales gain and a 19% rise in wholesale revenues, with expectations of mid-single-digit retail comps growth in the fiscal third quarter [2] - Nuuly posted a 53.2% revenue increase, with active subscribers climbing 48.1% to approximately 370,000, and is projected to maintain double-digit revenue growth in the fiscal third quarter [3] - Anthropologie extended its momentum with a 5.7% retail comps gain, marking over four years of consecutive quarterly gains, and management expects mid-single-digit comps growth in the fiscal third quarter [4] - The Urban Outfitters brand delivered 5% revenue growth and 4.2% retail comps, with significant growth in proprietary labels and collaborations [5] Financial Metrics - URBN's shares have gained 29% year to date, contrasting with the industry's decline of 6.6% [7] - The company trades at a forward price-to-earnings ratio of 13.14X, below the industry's average of 19.11X, and has a Value Score of A [10] - The Zacks Consensus Estimate for URBN's fiscal 2026 earnings implies year-over-year growth of 26.4%, while fiscal 2027 indicates an uptick of 8.2% [12]