One-glance verdict
Within fair range
$58.16 our estimate vs market $78.58
Wall Street consensus: $89.43 (53.8% higher than our fair-value estimate)
35% above our estimate
Fundamentals snapshot
Urban Outfitters, Inc.
URBN · NMS · Consumer Cyclical · Apparel Retail
Current price
$78.58
52-week range
$59.54 - $85.43
Market cap
$6.73B
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
0 Risks
3 rewards · 0 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.
What this company does
Urban Outfitters, Inc.
Urban Outfitters is a retail company that owns popular brands like Anthropologie, Free People, and the namesake Urban Outfitters, selling clothing, accessories, and home decor to different age groups. The company makes most of its money from sales in its physical stores and online, which means its profits depend on staying on-trend and controlling costs within its supply chain (the entire process of making and shipping goods to stores).
How the company got here
Urban Outfitters started in 1970 as a small store called Free People near the University of Pennsylvania, created by Richard Hayne, Scott Belair, and Judy Wicks. It focused on selling second-hand clothing and items to college students. The company changed its name to Urban Outfitters in 1976. A major turning point was the launch of the Anthropologie brand in 1992, which targeted a more mature and affluent customer. This multi-brand strategy became central to the company, which went public and began trading on the stock market in 1993.
What it actually does
Urban Outfitters is a lifestyle retail company that sells a mix of women's and men's clothing, accessories, home goods, beauty, and wellness products. The company operates a portfolio of brands, each with its own distinct style and target customer. You would recognize their products in their retail stores, on their websites and mobile apps, and even in some department stores. They aim to create a unique shopping experience by offering a curated mix of trendy, vintage-inspired, and bohemian-style items.
Retail
This is the company's largest segment and includes sales from its physical stores and online channels for its various brands like Urban Outfitters, Anthropologie, and Free People. The Urban Outfitters brand targets young adults (ages 18-28) with fashion apparel, home goods, and accessories. Anthropologie caters to a slightly older and more sophisticated woman (ages 28-45) with a mix of clothing, home furnishings, and gifts. Free People focuses on a younger contemporary woman (ages 25-30) with a bohemian and casual style.
Wholesale
In this part of the business, the company sells its own branded clothing to other retailers, like department stores and specialty boutiques around the world. This segment primarily involves the Free People brand, which designs and markets apparel, activewear, and shoes for other stores to sell. This allows the company to reach more customers who may not shop directly at its own stores and gives them insight into broader fashion trends.
Nuuly (Subscription)
Launched in 2019, Nuuly is a newer and fast-growing part of the business that operates on a subscription model. Customers pay a monthly fee to rent a selection of clothing from Urban Outfitters' brands as well as other labels. This service allows customers to constantly refresh their wardrobe in a more sustainable way. Nuuly represents a recurring revenue stream (predictable income that comes in regularly) for the company and is a key strategic priority.
What management is betting on now
The company's leadership is focused on growing its newer, high-growth concepts, especially the Nuuly subscription service and the FP Movement activewear line. They are investing in making their online and in-store shopping experiences work together seamlessly, which is known as an omnichannel strategy (allowing customers to shop and return items across different channels). Management also aims to strengthen the unique identity of each of its brands to attract and keep customers. Another key priority is carefully managing inventory (the amount of products they have on hand) to avoid having to sell items at a discount, which helps protect their profitability (the ability to make a profit).
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
Fetching…
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 $58.16 vs current price $78.58
Wall Street consensus is the average analyst price target: $89.43 (53.8% higher than our fair-value estimate).
Our most-likely fair value is $58.16 a share — about 26.0% away from today's price of $78.58, 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
0 Risks
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
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)
12.30x
Forward P/E
11.36x
P/B
2.58x
P/S
1.04x
EV/EBITDA
9.32x
PEG ratio
1.31x
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
—
Payout ratio
0.0%
Last ex-div date
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