One-glance verdict
Within fair range
$79.72 our estimate vs market $90.47
Wall Street consensus: $90.36 (13.3% higher than our fair-value estimate)
13% above our estimate
Fundamentals snapshot
Urban Outfitters, Inc.
URBN · NMS · Consumer Cyclical · Apparel Retail
Current price
$90.47
52-week range
$59.54 - $91.87
Market cap
$7.75B
Balance sheet
Healthy
123.20x Strong cushion
Net debt $497.25M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.0% last year.
- Reward Returns 20.9% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 1.9% above its 5-year average P/E.
What this company does
Urban Outfitters, Inc.
Urban Outfitters, Inc. sells trendy clothing, home goods, and lifestyle items for young adults and women through its popular brands like Urban Outfitters and Anthropologie. Their main income comes from selling these products directly to customers in their stores and online, which means their profit margins (the amount of money left from each sale after paying for the products and running the stores) are key to their success. Understanding how well they sell their products and manage their costs helps us see how financially healthy the company is.
How the company got here
Urban Outfitters, Inc. started in 1970 as a single store called "Free People" in Philadelphia, founded by University of Pennsylvania students. It was renamed Urban Outfitters and incorporated in 1976. The company grew by expanding its store base and developing its own private label merchandise through a wholesale division. Over the years, it has strategically acquired and developed several distinct brands, each targeting different customer demographics and lifestyle preferences. This multi-brand approach has allowed Urban Outfitters to diversify its offerings and reach a broader market, evolving from a small college-focused shop into a multinational lifestyle retail corporation.
What it actually does
Urban Outfitters, Inc. is a lifestyle products and services company. At its core, it designs, develops, and markets apparel and accessories for young adults and women. Beyond clothing, the company also offers a range of home goods, beauty products, and lifestyle items. It sells these products through various channels, including its own retail stores, e-commerce websites, mobile apps, and through wholesale partnerships with other retailers. The company's strategy emphasizes creativity and unique brand identities to appeal to its target customers.
Urban Outfitters
The Urban Outfitters brand primarily targets young adults, typically aged 18 to 28. It offers a wide array of merchandise, including women's and men's fashion apparel, activewear, intimates, footwear, accessories, and home products. This segment also includes electronics and beauty items. The brand is known for its eclectic mix of trendy, vintage-inspired, and bohemian styles, appealing to a culturally sophisticated and self-expressive customer base. It operates through its own retail stores and digital platforms.
Anthropologie
The Anthropologie brand focuses on women aged 28 to 45, offering a more sophisticated and contemporary selection. Its product assortment includes women's apparel, accessories, intimates, shoes, furniture, home décor, and beauty and wellness products. Anthropologie also provides gifts and decorative items, aiming to create an inviting and unique store environment. This brand operates through its own retail locations and online channels.
Free People
Free People is a brand that caters to young women, generally aged 25 to 30, with a focus on casual women's apparel, intimates, activewear, shoes, and accessories. It also offers home products, gifts, and beauty and wellness items. The brand is known for its bohemian and free-spirited aesthetic. Free People operates its own retail stores and also has a significant wholesale business, selling its merchandise to other retailers.
Terrain
Terrain stores offer a lifestyle focus centered around home, garden, and outdoor living. Customers can find home products, garden supplies, antiques, live plants, flowers, wellness products, and accessories. This segment appeals to individuals interested in creating a unique living space and enjoying an outdoor lifestyle. Terrain operates its own retail stores.
Nuuly
Nuuly is Urban Outfitters' subscription rental service for women's apparel, offering a more sustainable way to explore fashion. Customers can rent clothing on a monthly basis. This segment represents the company's move into the growing rental and resale market, providing a recurring revenue stream and engaging customers in a different way. Nuuly operates primarily through its digital platform.
What management is betting on now
Urban Outfitters' current strategy focuses on strengthening its brand relevance and growing direct customer engagement across its portfolio of brands. Key priorities include scaling higher-growth concepts like FP Movement (activewear) and Nuuly (rental service), indicating a push into new and expanding markets. The company is also focused on protecting its profit margins through careful inventory management and operational efficiency. Management aims to continue expanding its digital presence both domestically and internationally, while also growing its wholesale customer base.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$-26.65M
FY2025 Q4
$281.94M
FY2026 Q1
$-13.13M
FY2026 Q2
$156.62M
FY2026 Q3
$-22.76M
FY2026 Q4
$194.28M
FY2027 Q1
$-177.76M
FY2027 Q2
$301.45M
Revenue
$1.66B
Net income
$240.65M
Diluted EPS
2.78
Operating cash flow
$376.26M
Free cash flow
$301.45M
Fetching…
Sources
Revenue
$1.48B
Net income
$115.70M
Diluted EPS
1.30
Operating cash flow
$15.48M
Free cash flow
$-177.76M
Fetching…
Sources
Revenue
$1.80B
Net income
$96.27M
Diluted EPS
1.04
Operating cash flow
$263.00M
Free cash flow
$194.28M
Fetching…
Sources
Revenue
$1.53B
Net income
$116.44M
Diluted EPS
1.28
Operating cash flow
$61.14M
Free cash flow
$-22.76M
Fetching…
Sources
Revenue
$1.50B
Net income
$143.87M
Diluted EPS
1.58
Operating cash flow
$218.01M
Free cash flow
$156.62M
Fetching…
Sources
Revenue
$1.33B
Net income
$108.35M
Diluted EPS
1.16
Operating cash flow
$33.03M
Free cash flow
$-13.13M
Fetching…
Sources
Revenue
$1.64B
Net income
$120.30M
Diluted EPS
1.27
Operating cash flow
$320.47M
Free cash flow
$281.94M
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Sources
Revenue
$1.36B
Net income
$102.91M
Diluted EPS
1.10
Operating cash flow
$18.55M
Free cash flow
$-26.65M
Fetching…
Sources
Is it cheap or expensive?
Fair value $79.72 vs current price $90.47
Wall Street consensus is the average analyst price target: $90.36 (13.3% higher than our fair-value estimate).
Our most-likely fair value is $79.72 a share — about 11.9% away from today's price of $90.47, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $497.2M. Interest coverage 123.2x.
Net debt
$497.25M
Interest coverage
123.20x
Urban Outfitters, Inc.'s profit covers its interest bill about 123.2 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
URBN
BASELINE
Urban Outfitters, Inc.
Total debt $1.21B Interest coverage 123.20x This is the baseline the peer rows are being compared against.
Total debt $1.29B Interest coverage 294.38x +139% vs URBN Carries about 2.4x more debt cushion than URBN.
Total debt $1.92B Interest coverage 22.93x -81% vs URBN Carries about 5.4x less debt cushion than URBN.
What you should know
The case for and against URBN
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.0% last year.
-
Returns 20.9% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 1.9% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.16x
Forward P/E
13.06x
P/B
2.71x
P/S
1.20x
EV/EBITDA
10.66x
PEG ratio
1.38x
Profitability
How much profit each dollar creates
Gross margin
36.0%
Operating margin
11.6%
Net margin
8.8%
ROE
20.9%
ROA
8.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
1.58x
Quick ratio
0.71x
Total debt
$1.21B
Total cash
$716.13M
Growth
How the business has been compounding
Revenue TTM
$6.47B
Revenue 5Y CAGR
7.9%
EPS TTM
6.39
EPS 5Y CAGR
43.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$715.89M
Free CF TTM
$315.02M
FCF margin
4.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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