Urban Outfitters (NASDAQ:URBN) Releases Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Urban Outfitters (NASDAQ:URBN) announced its quarterly earnings data on Wednesday. The apparel retailer reported $1.43 EPS for the quarter, beating the consensus estimate of $1.24 by $0.19, Zacks reports. Urban Outfitters had a return on equity of 18.33% and a net margin of 8.15%.

Here are the key takeaways from Urban Outfitters’ conference call:

• URBN reported a record Q3 — total revenue grew ~12% to $1.5B and net income rose ~13% to $116M, with every brand producing positive comparable sales.
• Nuuly accelerated rapidly, delivering 49% revenue growth and nearly 400,000 average active subscribers, and URBN is expanding logistics (Kansas City) to support further scale.
• Urban Outfitters materially turned around with a 13% global retail comp (10% North America, 17% Europe) and achieved a low-single-digit operating profit in Q3.
• Tariffs are a meaningful headwind — management estimates ~60 bps gross margin pressure in Q3 and ~75 bps in Q4, with ongoing uncertainty that could affect future margins.
• Gross profit dollars rose ~13% and margin improved ~31 bps due to lower markdowns and occupancy leverage, but SG&A increased ~14% (marketing and store labor), partially offsetting gains.

Urban Outfitters Price Performance

Shares of URBN stock traded up $0.57 during mid-day trading on Wednesday, hitting $65.46. 3,401,195 shares of the stock traded hands, compared to its average volume of 1,602,953. Urban Outfitters has a 52-week low of $41.89 and a 52-week high of $84.35. The stock has a market cap of $5.87 billion, a P/E ratio of 12.35, a P/E/G ratio of 0.91 and a beta of 1.24. The stock’s fifty day moving average is $73.18 and its two-hundred day moving average is $71.63.

More Urban Outfitters News

Here are the key news stories impacting Urban Outfitters this week:

• Positive Sentiment: Q4 earnings beat — URBN reported $1.43 EPS vs. $1.24 consensus and showed an 8.15% net margin and 18.33% ROE, which supports near-term profitability improvements. Read More.
• Positive Sentiment: Namesake-store turnaround — The core Urban Outfitters banner, previously a drag, is now driving sales gains, helping lift comparable-store performance. Read More.
• Positive Sentiment: Nuuly rental business outperformed targets — The WSJ reports the Nuuly clothing-rental service beat its sales target and added subscribers, indicating a growing, higher-margin revenue stream. Read More.
• Neutral Sentiment: Analyst reaction mixed entering earnings — Some analysts lowered pre-quarter forecasts and models diverged, so near-term guidance and analyst revisions will matter for momentum. Read More.
• Neutral Sentiment: Valuation debate — Recent pullback has improved valuation metrics for some longer-term investors, but this is a gradual thesis rather than an immediate catalyst. Read More.
• Neutral Sentiment: Elevated trading volume — Volume is above average today, signaling heightened investor interest and opinion dispersion (can amplify moves in either direction).
• Negative Sentiment: Heavy insider selling — Multiple recent sales by executives (including Margaret Hayne and filings tied to senior insiders) have been significant in aggregate and are pressuring sentiment despite insiders’ large remaining stakes. Read More.

Insider Activity at Urban Outfitters

In related news, CEO Richard A. Hayne sold 10,667 shares of the stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $74.94, for a total transaction of $799,384.98. Following the completion of the sale, the chief executive officer owned 17,995,938 shares of the company’s stock, valued at $1,348,615,593.72. This represents a 0.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In the last three months, insiders have sold 602,850 shares of company stock worth $45,557,264. Insiders own 31.80% of the company’s stock.

Institutional Trading of Urban Outfitters

Institutional investors have recently made changes to their positions in the business. Maryland State Retirement & Pension System grew its stake in Urban Outfitters by 1.9% during the 4th quarter. Maryland State Retirement & Pension System now owns 7,880 shares of the apparel retailer’s stock worth $593,000 after buying an additional 148 shares during the last quarter. Lido Advisors LLC boosted its holdings in Urban Outfitters by 2.7% in the fourth quarter. Lido Advisors LLC now owns 7,367 shares of the apparel retailer’s stock worth $533,000 after acquiring an additional 193 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of Urban Outfitters by 125.1% during the second quarter. EverSource Wealth Advisors LLC now owns 493 shares of the apparel retailer’s stock worth $36,000 after acquiring an additional 274 shares during the last quarter. Evergreen Capital Management LLC grew its stake in shares of Urban Outfitters by 3.0% during the second quarter. Evergreen Capital Management LLC now owns 9,742 shares of the apparel retailer’s stock worth $707,000 after acquiring an additional 280 shares during the last quarter. Finally, Brown Brothers Harriman & Co. increased its holdings in shares of Urban Outfitters by 815.0% during the fourth quarter. Brown Brothers Harriman & Co. now owns 366 shares of the apparel retailer’s stock valued at $28,000 after acquiring an additional 326 shares in the last quarter. Institutional investors and hedge funds own 77.61% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on URBN. UBS Group reaffirmed a “neutral” rating on shares of Urban Outfitters in a research note on Tuesday, January 13th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Urban Outfitters in a report on Wednesday, November 26th. Wall Street Zen cut shares of Urban Outfitters from a “buy” rating to a “hold” rating in a report on Friday, January 23rd. Robert W. Baird set a $93.00 price target on shares of Urban Outfitters in a report on Wednesday, December 17th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Urban Outfitters in a research report on Monday, December 29th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $86.67.

Urban Outfitters Company Profile

Urban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city’s historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.

The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.