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Urban Outfitters Inc URBN

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Stock XNAS Rating as of
$34.55 −2.25 (6.11%)
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As of Delayed Price Pre-Open: $34.87 +0.32
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Company Report

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Urban Outfitters Earnings: Anthropologie and Free People Defy Slow Consumer Spending Concerns

David Swartz

No-moat Urban Outfitters beat our expectations in the third quarter as Anthropologie and Free People overcame women’s apparel industry challenges to post double-digit strong retail same-store sales. We think these two brands’ outperformance relative to peers is attributable to their success in meeting fashion trends and their relatively mature and affluent customer bases. We expect to raise our $39.50 fair value estimate for Urban Outfitters by a mid-single-digit percentage, leaving shares slightly undervalued.

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Price vs Fair Value

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URBN is trading at a 13% discount.
Price
$34.55
Fair Value
$91.90
Uncertainty
Very High
1-Star Price
$62.69
5-Star Price
$49.23
Economic Moat
Yysz
Capital Allocation
Fhpmwsd

Bulls Say, Bears Say

Bulls

Urban Outfitters generates about half its sales from e-commerce. It was the fourth-largest online apparel and footwear specialist firm in the U.S. in 2022 (Euromonitor).

Bears

Urban Outfitters has more fashion risk than some other retailers. Its sales suffer when it misreads a fashion trend or if a trend moves away from its core styles. Consequently, its sales growth tends to be volatile.

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Trading Information

Previous Close Price
$36.80
Day Range
$34.54–36.54
52-Week Range
$23.26–37.82
Bid/Ask
$34.50 / $36.70
Market Cap
$3.21 Bil
Volume/Avg
9 / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
14.04
Price/Sales
0.64
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
< 0.01%

Company Profile

Founded in 1970, Philadelphia-based Urban Outfitters is an apparel and home goods retailer that operates about 700 stores and e-commerce in North America (87% of fiscal 2023 sales) and other regions. Its retail nameplates are Urban Outfitters, Free People, FP Movement, and Anthropologie. Retail accounted for 92% of its fiscal 2023 revenue, but it also sells products through a wholesale operation, owns some restaurants, and operates a clothing rental and resale business called Nuuly. Urban Outfitters primarily markets to young adults and offers products in categories such as apparel (63% of fiscal 2023 sales), home goods (19% of sales), accessories (13% of sales), and more.
Sector
Consumer Cyclical
Industry
Apparel Retail
Stock Style Box
Small Core
Total Number of Employees
26,000
Website
https://www.urbn.com

Competitors

Valuation

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Metric
URBN
JWN
GPS
Price/Earnings (Normalized)
 14.0410.52109.37
Price/Book Value
 1.573.443.13
Price/Sales
 0.640.170.52
Price/Cash Flow
 4.962.3111.91
Price/Earnings
URBN
JWN
GPS

Financial Strength

Metric
URBN
JWN
GPS
Quick Ratio
 0.580.190.43
Current Ratio
 1.431.001.39
Interest Coverage
 —1.933.47
Quick Ratio
URBN
JWN
GPS

Profitability

Metric
URBN
JWN
GPS
Return on Assets (Normalized)
 6.63%4.27%0.76%
Return on Equity (Normalized)
 13.77%58.03%3.67%
Return on Invested Capital (Normalized)
 8.58%8.90%1.25%
Return on Assets
URBN
JWN
GPS

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GPS
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