Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Urban Outfitters (URBN) and Industria de Diseno Textil SA (IDEXY). But which of these two stocks presents investors with the better value opportunity right now?
Note: Urban Outfitters' FY'24 ended in January 2024.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
BMO Capital raised the firm's price target on Urban Outfitters to $47 from $39 and keeps a Market Perform rating on the shares. The firm updated the company's model post the earnings report.
Despite stable revenue growth in 3Q25, Urban Outfitters' underlying demand trends remain weak, with decelerating same-store sales growth (SSSG) across key brands. The UO brand continues to struggle, marking the 10th consecutive quarter of negative SSSG, with no positive traction in the turnaround story. Market optimism on URBN's stock price seems premature, as tangible improvements in SSSG, especially for the UO brand, have yet to materialize.
Urban Outfitters posted strong Q3 results, with earnings of $1.10 per share and revenue growth of 6%, driving a 14% stock price increase. Anthropologie and Free People segments showed robust growth, while the Urban Outfitters brand remains a weak spot, though markdown reductions are a positive sign. Nuuly, URBN's subscription service, is scaling rapidly with 48% revenue growth, contributing to more predictable cash flows and improving margins.
Urban Outfitters, Inc. (NASDAQ:URBN ) Q3 2025 Earnings Conference Call November 26, 2024 5:15 PM ET Company Participants Oona McCullough - Executive Director, Investor Relations Richard Hayne - Chief Executive Officer and Chairman Frank Conforti - Co-President and Chief Operating Officer Dave Hayne - Chief Technology Officer and President, Nuuly Sheila Harrington - Global Chief Executive Officer, Urban Outfitters and Free People Groups Melanie Marein-Efron - Chief Financial Officer Shea Jensen - President, Urban Outfitters, North America Tricia Smith - Global Chief Executive Officer, Anthropologie Group Conference Call Participants Lorraine Hutchinson - Bank of America Adrienne Yih - Barclays Matthew Boss - JPMorgan Paul Lejuez - Citi Alex Straton - Morgan Stanley Mark Altschwager - Baird Dana Telsey - Telsey Advisory Group Marni Shapiro - The Retail Tracker Janet Kloppenburg - JJK Research Associates Ike Boruchow - Wells Fargo Operator Good day and welcome to the Urban Outfitters, Inc. Third Quarter Fiscal 2025 Earnings Call. At this time, all participants are in a listen-only mode.
Urban Outfitters, Inc. URBN reported earnings results for the third quarter on Tuesday.
Shares of apparel retailer Urban Outfitters (URBN 15.89%) soared on Wednesday after the company reported financial results for its fiscal third quarter of 2025. As of 11:30 a.m.
Urban Outfitters, Inc. stock is a buy, with a target price of $50, driven by strong Q3 sales and improved margins. Q3 revenue hit a record $1.36 billion, with comparable sales up 1.5%, and notable growth in Anthropologie, Free People, and Nuuly segments. Gross margin expanded by 105 basis points, leading to a record net income of $102.9 million, or $1.10 per share, beating estimates by $0.25.
Urban Outfitters reported strong Q3 results, as total retail sales were resilient amid a turbulent consumer confidence. The Nuuly platform's growth remained great. The Q3 performance showed great pricing management, leading to margin expansion. I still believe that higher, sustained margin levels require stabilizing Urban Outfitters brand traffic. The URBN stock remains roughly fairly valued in a base financial scenario.
Urban Outfitters' stock soared 14% Wednesday to put it on track for its biggest one-day gain in more than a year, as analysts weighed in on better-than-expected third-quarter earnings and management's upbeat tone on the call.