Urban Outfitters continues to outperform the retail sector, driven by accelerating comp sales and strong brand performance from Anthropologie and Free People. URBN's Nuuly subscription segment is growing rapidly, with subscriber counts up 48% year-over-year and revenue surging 53%, now nearing 10% of total sales. Gross margin expansion and reduced reliance on markdowns have boosted profitability, supporting double-digit EPS growth and a premium valuation for URBN.
Urban Outfitters (URBN) possesses solid growth attributes, which could help it handily outperform the market.
Urban Outfitters' robust brand performance, Nuuly growth and expansion spending set the stage for continued fiscal 2026 gains.
From a technical perspective, Urban Outfitters (URBN) is looking like an interesting pick, as it just reached a key level of support. URBN recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
Here is how Urban Outfitters (URBN) and Wayfair (W) have performed compared to their sector so far this year.
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Urban Outfitters delivered record Q2 results, with strong revenue and EPS growth, and Nuuly subscription revenue surging 53%. Despite a doubling stock price, Urban Outfitters trades at lower valuation multiples than sector peers, suggesting modest undervaluation. Nuuly is a standout growth driver, already surpassing $500M in annualized revenue and poised for further expansion with automation upgrades.
American Eagle Outfitters (NYSE: AEO) has been in the news due to its recent stock increases, but investors should also examine Urban Outfitters (NASDAQ: URBN) more carefully. URBN is trading at a lower price of 14 times earnings, compared to AEO's 18 times earnings multiple.
Urban Outfitters (URBN) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Urban Outfitters (URBN) and Industria de Diseno Textil SA (IDEXY). But which of these two stocks offers value investors a better bang for their buck right now?
Urban Outfitters, Inc. (NASDAQ:URBN ) Goldman Sachs 32nd Annual Global Retailing Conference 2025 September 3, 2025 8:55 AM EDT Company Participants Francis Conforti - COO & Co-President Tricia Smith - Global Chief Executive Officer of Anthropologie Group Melanie Marein-Efron - Chief Financial Officer Conference Call Participants Brooke Roach - Goldman Sachs Group, Inc., Research Division Presentation Brooke Roach Research Analyst Good morning, and welcome to our first session here at the Goldman Sachs 32nd Annual Global Retailing Conference. My name is Brooke Roach, and I cover the softline sector here at GS.
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