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Urban Outfitters, Inc.
URBN

URBN Urban Outfitters, Inc.

Urban Outfitters, Inc. · NASDAQ
Market Closed
78.58
▲ ⁦+3.94%⁩ (+2.98)
Market Cap$6.7B
Beta1.25
52w Low52w High
59.5485.43
Last Week
⁦-0.90%⁩
Last Month
⁦+1.17%⁩
Last 3 Months
⁦+4.19%⁩
Last Year
⁦+2.08%⁩
EL7 Factor Analysis
How we score this
Overall89
Excellent — top fifth of the marketSuper StockF 8/9Better than 89% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
84
12.2x▲17.8xTop tier
▸
Growth
74
20.3%▲7.1%Top tier
▸
Quality
66
14.0%▲4.5%Top tier
▸
Safety
75
1.0x▲2.6xTop tier
▸
Capital Return
39
—2.12%Bottom tier
▸
Momentum
68
5.4%▲2.9%Top tier
▸
Sentiment
49
5▲3Around median
Fair Value
Current price$79
Analyst target · 5 analysts
$86
⁦+9%⁩
See it undervalued
Range ⁦$79–$100⁩
vs
DCF (estimate)
$85
⁦+9%⁩
Sees it undervalued
⁦9.9⁩% discount · ⁦2⁩% growth
Bottom lineThe two methods broadly agree — estimate range ⁦$85–$86⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 5 analysts setting price target
$87.33
⁦+11.1%⁩
Current Price $78.58·Median $86.00
Low
$79.00
High
$100.00
Current price
$78.58
Average target
$87.33
Street summary

Slight Decline in URBN Average Price Targets While Ratings Remain Unchanged

The average price target for Urban Outfitters stock fell to 87.33, compared with 88.80 seven days ago and 90.25 30 days ago, a decline of 1.66% and 3.24%, respectively. The number of analysts remained at five, indicating that the decline reflects lowered estimates rather than a change in the coverage base. The current range is between 79 and 100, with a median of 86, reflecting a clear divergence of views compared with the current price of 78.58.

As of 2026-09-11
Revisions momentum · 30d
⁦-3.2%⁩
Average rating
★ 3.71
Buy
Analyst coverage
14
Buy conviction
50%
Mixed
Rating activity · 30d
0↑ · 0↓
Target dispersion
27%
Analyst ratings over time14 analysts rating
3
4
7
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.54 → 3.71
Recent analyst moves
  • = Reiterate2026-09-08
    BMO Capital
    Market Perform
  • = Reiterate2026-08-28
    Citigroup
    Neutral
  • = Reiterate2026-08-27
    Barclays
    Overweight
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    12.16x
    4.56x36.49x
    Cheap
  • Forward P/E
    12.30x
    3.79x30.29x
    Cheap
  • EV / EBITDA
    9.18x
    2.75x22.03x
    Cheap
  • FCF Yield
    8.5%
    -30.9%16.2%
    Strong
  • Revenue Growth YoY
    20.3%
    -13.8%31.9%
    Strong
  • EPS Growth YoY
    58.3%
    -156.9%135.6%
    Strong
  • Gross Margin
    37.5%
    12.0%66.5%
    Near median
  • ROIC
    14.0%
    -23.8%21.5%
    Strong
  • Net Debt / EBITDA
    1.02x
    0.65x5.48x
    Low debt
  • Dividend Yield
    —
    —
  • Payout Ratio
    —
    —
  • Altman Z-Score
    —
    —
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-08-26 data

Company Overview

Urban Outfitters, Inc. operates a diversified portfolio of fashion and lifestyle brands, including Urban Outfitters, Anthropologie, Free People, and FP Movement, and generates revenue through retail stores, digital channels, and wholesale, in addition to clothing rental subscriptions through Nuuly. In Q2 fiscal 2027, growth came from several simultaneous drivers: Retail segment comparable sales increased 6%, Nuuly revenue grew 29%, wholesale revenue increased 19%, and all retail brands recorded positive comparable sales.

In Q2 fiscal 2027 ended July 31, 2026, net sales increased 10% to a record 1.7 billion dollars, adjusted operating profit rose 11% to 193 million dollars, and adjusted net income reached 149 million dollars, with adjusted diluted earnings per share of 1.72 dollars, up 9%. Gross profit increased 11%, and gross profit margin improved 4 basis points to 37.7%, while selling, general, and administrative expenses grew 10%, in line with sales growth. Reported results, which included exceptional benefits related to refunds of IEEPA tariffs and associated interest, as well as a tax benefit, showed net income of 240.7 million dollars and diluted earnings per share of 2.78 dollars.

The growth mix was broad-based in Q2 fiscal 2027; FP Group revenue increased 15%, including growth of 26% at FP Movement and 11% at Free People, while Urban Outfitters brand sales grew 8% and Anthropologie revenue increased 5%. Nuuly generated revenue of 179 million dollars and an operating profit margin of 10% for the first time in its quarterly history, supported by average active subscribers reaching 484 thousand, up 30%. For fiscal 2026, EDGAR data showed revenue of 6.2 billion dollars, net income of 464.9 million dollars, and earnings per share of 5.06 dollars.

What's Driving the Stock

  • Management expects total Urban Outfitters sales to grow in the high single digits during fiscal 2027, driven by mid-single-digit comparable sales growth in the Retail segment, high-twenties revenue growth at Nuuly, and low-teens growth in the Wholesale segment.
Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • Nuuly has become a meaningful driver of growth and profitability; its revenue increased 29% to 179 million dollars in Q2 fiscal 2027, average active subscribers reached 484 thousand, and it recorded a quarterly operating margin of 10%. Management is targeting revenue exceeding 700 million dollars and a high-single-digit operating profit margin during fiscal 2027.
  • Nuuly expanded its assortment to approximately 33 thousand options, up 35% year over year, and added REVOLVE private brands, Collina Strada, and Faithfull, with Nike launching in August 2026 and J.Crew scheduled to join in October 2026. The Kansas City facility also expanded from 600 thousand to 1 million square feet, allowing it to serve up to 600 thousand subscribers.
  • FP Movement generated revenue growth of 26% and comparable sales growth of 13% in Q2 fiscal 2027, and opened four stores, bringing its standalone store count to 97. The company plans to open 21 stores for the brand during fiscal 2027, as part of a plan that includes opening approximately 54 stores and closing approximately 18 stores across the group.
  • The Urban Outfitters brand recorded sales and comparable sales growth of 8% in Q2 fiscal 2027, with comparable growth of 9% in Europe and double-digit digital growth in North America. Management expects mid-single-digit comparable growth for the brand during Q3 fiscal 2027, led by North America with expected high-single-digit growth.
  • Management expects gross profit margin to improve by between 25 and 50 basis points in Q3 fiscal 2027 and by approximately 25 basis points for the full fiscal 2027, benefiting from a lower effective tariff rate compared with the prior year and improved store occupancy efficiency.
  • Buying & Selling Case

    ▲ Buying Case5 pts

    • +The company recorded its eighth consecutive quarter of record sales and earnings in Q2 fiscal 2027, with sales growth of 10% and adjusted operating profit growth of 11%, reflecting simultaneous contributions from retail, wholesale, and subscriptions rather than reliance on a single brand.
    • +Nuuly's expansion provides a growth path distinct from traditional fashion retail; revenue grew 29% and the quarterly operating margin reached 10%, while management is targeting revenue exceeding 700 million dollars during fiscal 2027 and a network capable of serving approximately 1.2 million subscribers after completion of the planned East Coast expansion in late calendar 2028.
    • +FP Group shows clear operating strength, with revenue increasing 15% in Q2 fiscal 2027 and FP Movement recording growth of 26%, while the group's wholesale revenue increased 19% and its operating profit rose 40%.
    • +The portfolio maintained broad-based growth, as all Retail segment brands recorded positive comparable sales, and four of five brands achieved record sales for Q2 fiscal 2027, alongside wholesale growth of 19% and Nuuly growth of 29%.
    • +Lower tariffs compared with the prior year and improved store occupancy efficiency could support margin expansion; management expects gross profit margin to increase by between 25 and 50 basis points in Q3 fiscal 2027 and by approximately 25 basis points for the full year.

    ▼ Selling Case6 pts

    • −Anthropologie faces a challenge involving its product assortment and slow-moving inventory; comparable sales increased only 3% in Q2 fiscal 2027, and the brand had to increase markdowns to clear existing products and make room for new assortments. Management expects low- to mid-single-digit comparable growth during Q3.
    • −Fuel and transportation costs related to the war in the Middle East are affecting profitability; inbound freight costs reduced the initial markup margin by approximately 50 basis points, and delivery and outbound freight expenses had an impact of approximately 20 basis points in Q2 fiscal 2027. Management assumes a continued total negative impact of approximately 70 basis points in each of Q3 and Q4 fiscal 2027.
    • −Nuuly's margin could slow after its seasonal peak; despite the operating margin reaching 10% in Q2 fiscal 2027, management expects it to decline to the high single digits during the second half and has not specified when it will reach or exceed an annual margin of 10%.
    • −The approximately 475 million dollar capital investment plan for fiscal 2027 carries execution and return-on-capital risks, with approximately 50% allocated to logistics, 35% to store expansion and support, and 15% to technology and offices. The plan includes opening approximately 54 stores and closing approximately 18 stores, alongside major Nuuly facility automation and expansion projects.
    • −Performance remains sensitive to fashion cycles and the speed of assortment adjustments; management linked the strength in average unit retail to the product mix, particularly the continuation of the pants and wide-leg silhouette cycle. Management indicated that this trend could change within approximately three years, despite expecting its strength to continue through fiscal 2028.

    Valuation

    The analyst consensus for URBN stock is Neutral, with an average price target of 88.8 dollars, a high of 100 dollars, and a low of 79 dollars. The average target and highest target are above the 52-week range high of 85.43 dollars, while the lowest target is near the upper portion of the range extending from 59.54 to 85.43 dollars; the data does not include a published price-to-earnings ratio that can be relied upon, so the stock's valuation here is based on the target range and the divergence in growth and margin expectations.

    HoldAnalyst target: $88.8(+13.0%)

    Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.

    FAQ

    What drove URBN's record results in Q2 fiscal 2027?

    Net sales increased 10% to 1.7 billion dollars in Q2 fiscal 2027 ended July 31, 2026, and the company recorded its eighth consecutive quarter of record sales and earnings. Retail segment comparable sales grew 6%, Nuuly revenue increased 29%, and wholesale revenue rose 19%. Adjusted operating profit also increased 11% to 193 million dollars, and gross profit margin improved 4 basis points to 37.7%.

    Why is Nuuly important to the URBN investment thesis?

    Nuuly generated revenue of 179 million dollars in Q2 fiscal 2027, up 29%, and average active subscribers reached 484 thousand, up 30%. For the first time, the platform recorded a quarterly operating profit margin of 10% and operating profit of 18 million dollars. Management expects revenue exceeding 700 million dollars and a high-single-digit operating margin during fiscal 2027, with future network expansion to support approximately 1.2 million subscribers.

    What is Urban Outfitters' outlook for fiscal 2027?

    Management expects total company sales to grow in the high single digits during fiscal 2027. This outlook assumes mid-single-digit comparable growth for the Retail segment, high-twenties revenue growth at Nuuly, and low-teens growth in wholesale. It also expects gross profit margin to improve by approximately 25 basis points, with capital expenditures of approximately 475 million dollars.

    What are URBN's main margin risks in the second half of fiscal 2027?

    The company assumes that elevated fuel surcharges related to the war in the Middle East will continue, representing a negative impact of approximately 70 basis points in each of Q3 and Q4 fiscal 2027. Anthropologie continues to clear some slow-moving inventory through higher markdowns, which could pressure the brand's margin. Management also expects Nuuly's margin to decline from 10% in Q2 to the high single digits during the second half due to seasonality.

    Which URBN brands are growing the fastest?

    FP Movement was among the fastest growth drivers in Q2 fiscal 2027, with revenue increasing 26% and comparable sales rising 13%. Nuuly generated revenue growth of 29%, while FP Group wholesale revenue increased 19%. Free People recorded sales growth of 11%, while Urban Outfitters brand sales grew 8%.

    How does URBN stock's valuation look according to analyst consensus?

    The analyst consensus rates the stock Neutral, with an average price target of 88.8 dollars. The target range extends from 79 to 100 dollars, compared with a 52-week range of between 59.54 and 85.43 dollars. The average target is above the 52-week range high, but the absence of a published price-to-earnings ratio and the wide target range reflect uncertainty regarding the sustainability of growth and margins.

  • −The valuation carries a degree of uncertainty because the analyst consensus is Neutral rather than Buy, and the target range is relatively wide at between 79 and 100 dollars. This divergence indicates a meaningful difference in estimates of the sustainability of Nuuly's growth, group margins, and the company's ability to offset transportation and markdown pressures.