The clothing company is outpacing its rivals.Shares of Urban Outfitters (URBN +13.80%) popped on Wednesday after the apparel seller reported strong fiscal third-quarter earnings. As of 2:40 p.m. EST, Urban Outfitters' stock price was up more than 13%. Urban Outfitters is enjoying broad-based growthUrban Outfitters' net sales leaped 12% to $1.5 billion in the quarter ended Oct. 31. The retailer saw solid revenue gains across its stores and online channels.Comparable sales at the company's Urban Outfitters, A ...

This audio is auto-generated. Please let us know if you have feedback Dive Brief:Urban Outfitters Inc. Q3 net sales surged more than 12% year over year to a record $1.5 billion, with strength across channels and brands. With high single-digit growth online and in stores, retail net sales rose 9.6% and comps rose 8%. Wholesale grew 7.6%, driven by Free People.Comps rose 12.5% at Urban Outfitters, 7.6% at Anthropologie and 4.1% at Free People. Nuuly subscription net sales rose 48.7%, thanks to a 42% increase ...

PHILADELPHIA, Nov. 25, 2025 (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 record net income of $116.4 million and earnings per diluted share of $1.28 for the three months ended October 31, 2025. For the nine months ended October 31, 2025, net income was a record $368.7 million and earnings ...

Core Insights - Wolverine World Wide, Inc. (WWW) demonstrated strong performance in Q3 2025, achieving 6.8% revenue growth and record margins, primarily driven by its flagship brands, Saucony and Merrell [1][10] Brand Performance - Saucony reported a significant 27% year-over-year revenue increase, achieving record profitability by effectively blending performance running with lifestyle appeal [2][10] - Merrell experienced a 5.1% quarterly revenue growth, focusing on performance-oriented products while redefining itself as a modern outdoor lifestyle brand [4][10] Product and Market Strategy - Saucony's signature models, including the Endorphin series and ProGrid Omni 9, are enhancing its presence in both athletic and fashion markets, supported by collaborations that resonate with younger consumers [3][10] - Merrell's product offerings, such as the Moab 3 and Agility Peak 5, are attracting diverse audiences by combining trail performance with everyday versatility [4][10] Global Expansion - Both brands are expanding their global reach through a city-focused strategy targeting key markets like Tokyo, London, and Paris, which integrates digital engagement with localized storytelling [5][10] Financial Projections - For Q4 2025, Wolverine anticipates revenues between $498 million and $513 million, indicating a 2.2% year-over-year growth at the midpoint [6][10] - Full-year revenue projections for 2025 are between $1.86 billion and $1.87 billion, suggesting a year-over-year growth of 6-6.8% [6][10] Competitive Landscape - Wolverine competes with key players like Deckers Outdoor Corporation, Tapestry, Inc., and Urban Outfitters Inc., all of which are also focusing on brand innovation and market expansion [8][10]

Core Viewpoint - Urban Outfitters, Inc. (NASDAQ:URBN) is considered one of the most undervalued retail stocks, with analysts maintaining a positive outlook despite varying ratings and price targets from different firms [1][2]. Group 1: Analyst Ratings and Price Targets - Wells Fargo maintained a Hold rating on Urban Outfitters and set a price target of $75.00 [1]. - UBS raised its price target for Urban Outfitters from $78 to $79, maintaining a Neutral rating, citing a solid Q2 performance and positive Q3 guidance [2]. - The current analyst consensus for Urban Outfitters is a Moderate Buy, with a median price target of $73.19, indicating a potential upside of 12.04% from current levels [2]. Group 2: Company Overview - Urban Outfitters operates through three segments: Retail, Wholesale, and Nuuly [3]. - The Retail segment includes its store and digital channels, managing brands such as Anthropologie, Free People, FP Movement, and Urban Outfitters [3]. - The Nuuly segment consists of the Nuuly brand, which features Nuuly Thrift and Nuuly Rent, a monthly women's apparel subscription rental service [3].

Core Viewpoint - TCW Relative Value Mid Cap Fund reported a strong performance in Q2 2025, with a return of 7.37%, outperforming the Russell Midcap® Value Index which returned 5.35% [1] Company Overview - Urban Outfitters, Inc. (NASDAQ:URBN) is a lifestyle products and services company with a market capitalization of $6.56 billion as of October 2, 2025 [2] - The company operates 744 stores globally, including 257 Urban Outfitters stores, 241 Anthropologie stores, and 237 Free People stores [3] Investment Highlights - Urban Outfitters, Inc. has shown a one-month return of 2.49% and a remarkable 103.93% increase in share value over the last 52 weeks [2] - The stock initially had a market capitalization of $6.5 billion and met four out of five valuation factors: price-to-earnings, price-to-sales, price-to-book, and price-to-cash flow [3] Growth Catalysts - Key catalysts for Urban Outfitters include a turnaround at the Urban Outfitters brand, new product launches, and growth in adjacent product categories [3] - The company plans to clean up inventory and lower markdown levels in fiscal 2026, followed by enhanced marketing efforts [3] - Anthropologie is focusing on expanding in warm weather, athleisure, and intimates and lounge categories, while also seeing positive sales growth in Home [3] - Free People aims to open 25 new stores in 2025, contributing to overall top-line growth and improved cash flow [3]

Core Insights - Wolverine World Wide, Inc. (WWW) reported strong brand performance in Q2 2025, with Saucony leading the portfolio, achieving a 41.5% year-over-year revenue increase and record sales, alongside a gross margin expansion of 560 basis points [1][11] - Key initiatives such as the Run As One campaign and flagship store openings in Tokyo and London enhanced consumer engagement and solidified Saucony's market position [2] - Merrell experienced a 10.7% revenue growth, marking its fourth consecutive quarter of growth, with nearly 600 basis points of gross-margin expansion driven by demand for lighter, faster trail footwear [3][11] - Sweaty Betty's revenues declined by 6% year-over-year, yet it achieved over 500 basis points of gross margin expansion through strategic campaigns and digital enhancements [4] - The Wolverine brand also improved revenues and expanded gross margin by over 400 basis points, supported by premium product launches and stronger marketing efforts [5][11] - Overall, Wolverine's Q2 performance indicates robust growth from Saucony and Merrell, with sequential improvements from Sweaty Betty and Wolverine, positioning the portfolio for sustainable growth [6][11] Competitive Landscape - Deckers Outdoor Corporation (DECK) reported strong results driven by flagship brands HOKA and UGG, with HOKA growing 19.8% year-over-year to $653.1 million and UGG increasing 18.9% to $265.1 million [8] - Tapestry, Inc. (TPR) saw an 8.3% year-over-year increase in net sales, with Coach leading the growth at 14% to $1.43 billion, while Kate Spade and Stuart Weitzman experienced declines [9] - Urban Outfitters Inc. (URBN) showcased strong performance across its brand portfolio, with all brands delivering positive comparable sales [10]

Core Insights - Urban Outfitters (URBN) is positioned as a more attractive investment compared to American Eagle Outfitters (AEO), trading at 14 times earnings versus AEO's 18 times, with better growth and improved margins [2] - URBN has shown significant stock appreciation of approximately 30% year-to-date, rising from around $55 in January to about $71 [4] - The company has strong growth drivers, particularly from its brands Free People and Anthropologie, with Free People revenues increasing by 12% year-on-year and Anthropologie generating $1.18 billion, a 7% increase [5] Growth - URBN's revenue has increased by over 8% in the last twelve months, achieving nearly $3 billion in sales in the first half of fiscal 2025, more than double AEO's results [6] - The subscription service Nuuly has seen a remarkable growth of 56% to $263 million, indicating a successful expansion into new commerce channels [5] Margins - URBN's trailing twelve-month margin exceeds 9%, while AEO's is approximately 6%, demonstrating greater profitability [6] - For the first half of FY2025, URBN recorded a 10.7% operating margin compared to AEO's 7.8%, highlighting URBN's operational efficiency [6] Tariffs and Cost Management - URBN anticipates around 75 basis points of margin compression in the second half of 2025 due to tariffs, but this is manageable given its solid margins and cost control [6] - AEO expects higher dollar costs due to tariffs, with an estimated impact of about $20 million in Q3 and $40–50 million in Q4, although mitigation efforts will reduce total exposure [6] Long-Term Perspective - For long-term investors, URBN presents an intriguing entry point with its premium brands, growth in subscriptions, and digital presence, supported by solid cash reserves and low debt [8]

Financial Data and Key Metrics Changes - The company reported a record Q2 revenue of $1.5 billion, achieving over 11% top-line growth [3] - Gross profit margin expanded by over 100 basis points, primarily due to a lower markdown rate and occupancy leverage from strong sales [3][4] - Earnings per share (EPS) grew by over 20%, marking another record for Q2 [3] Business Line Data and Key Metrics Changes - Nuuly experienced robust growth with over 50% top-line growth [3] - The Urban Outfitters brand achieved positive comparable sales for the first time in a while, indicating a turnaround [4][20] - The Home category has seen three consecutive quarters of comparable sales increases, driven by customer interest in home decor [14][16] Market Data and Key Metrics Changes - All brands and geographies reported positive comparable sales, showcasing broad-based strength [3][39] - The company has successfully grown its customer base by 50% over the last five years, indicating effective marketing and product strategies [9] Company Strategy and Development Direction - The company is focused on diversifying its product offerings and enhancing customer experiences, particularly through new sub-brands [7][11] - There is a strong emphasis on maintaining a full-price business model and reducing reliance on promotions [50] - The company is optimistic about its ability to navigate tariff headwinds through vendor negotiations and sourcing diversification [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macroeconomic environment and consumer spending, despite potential tariff impacts [40][42] - The company anticipates continued strong performance in the second half of 2025, with expectations for similar results to recent quarters [39][41] - There is a focus on leveraging logistics and distribution improvements to enhance profitability, particularly for the Nuuly brand [35][36] Other Important Information - The company is expanding its distribution center to improve logistics efficiency, which is expected to enhance margins in the future [36][38] - Management highlighted the importance of protecting customer experience while adjusting pricing strategies in response to tariffs [50][51] Q&A Session Summary Question: What gives you confidence that the momentum at Anthropologie is sustainable? - The company has been focused on modernizing product assortments and creating exceptional customer experiences, leading to a 50% increase in the customer base over five years [9][12] Question: What are the largest incremental profit drivers for the Anthropologie brand? - Management indicated that margin improvements will come from efficiencies in logistics and continued growth in the Urban turnaround [18][19] Question: How do you view the future of the Free People brand? - The brand is expected to continue expanding its market share and customer base, particularly in international markets [28][29] Question: What are your expectations for the second half of 2025? - The company expects to maintain strong performance similar to recent results, with all brands and geographies comp positive [39][41] Question: How are you addressing tariff impacts? - The company is employing a variety of strategies, including vendor negotiations and sourcing diversification, to mitigate tariff impacts while protecting customer experience [44][45]

Core Insights - Urban Outfitters, Inc. reported record net income of $143.9 million and earnings per diluted share of $1.58 for the three months ended July 31, 2025, and a record net income of $252.2 million and earnings per diluted share of $2.73 for the six months ended July 31, 2025 [1][13]. Financial Performance - Total Company net sales for the three months ended July 31, 2025, increased by 11.3% to a record $1.50 billion, while for the six months, net sales increased by 11.0% to $2.83 billion [2][3]. - Retail segment net sales increased by 7.8% for the three months and 7.1% for the six months, with comparable Retail segment net sales rising by 5.6% and 5.2%, respectively [2][3]. - Subscription segment net sales surged by 53.2% for the three months and 56.1% for the six months, driven by a significant increase in average active subscribers [2][3]. - Wholesale segment net sales increased by 18.1% for the three months and 21.0% for the six months, primarily due to increased sales to specialty customers [2][3]. Brand Performance - Comparable Retail segment net sales growth was observed across all brands: Free People (6.7% for three months, 5.0% for six months), Anthropologie (5.7% for three months, 6.3% for six months), and Urban Outfitters (4.2% for three months, 3.2% for six months) [2][3]. - The company opened 27 new retail locations during the six months, including 19 Free People stores, 4 Anthropologie stores, and 4 Urban Outfitters stores [15]. Profitability Metrics - The gross profit rate increased by 113 basis points for the three months and 191 basis points for the six months compared to the previous year, with gross profit dollars rising by 14.8% to $566.2 million for the three months and by 17.0% to $1.06 billion for the six months [6][8]. - Selling, general and administrative expenses increased by 12.5% for the three months and 10.4% for the six months, with a notable increase in marketing expenses to support customer growth [10][11]. Tax and Shareholder Returns - The effective tax rate decreased to 21.5% for both the three and six months ended July 31, 2025, compared to 23.0% and 23.2% in the prior year periods [12]. - The company repurchased and retired 3.3 million shares for approximately $152 million during the six months ended July 31, 2025, with 14.7 million shares remaining under the repurchase program [14].