Urban Outfitters Inc. URBN has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends.

The company ended Friday’s trading session at $56.60, above its 50 and 200-day SMAs of $54.02 and $43.51, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, indicates positive market sentiment and investor confidence in URBN’s financial stability and growth potential.

URBN Trades Above 50 & 200-Day Moving Averages

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Shares of this distinguished global fashion entity are currently trading 7.1% below its 52-week high of $60.90 reached on Jan. 22, 2025, making investors contemplate their next moves. In the past three months, the URBN stock has gained 45.4% compared with the Zacks Retail-Apparel and Shoes industry’s 7% growth.

The company’s strategic initiatives and operational efficiency have enabled it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 8.4% and 0.7%, respectively, at the same time frame.

URBN Stock Past Three-Month Performance

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Key Drivers of Urban Outfitters' Growth

Anthropologie remains a pivotal contributor to URBN’s success, driven by strong sales across both physical stores and online platforms. The brand excels at attracting and retaining customers through innovative product offerings and targeted marketing strategies. Its ability to adapt to shifting consumer preferences underscores its strength in customer acquisition.

Nuuly, Urban Outfitters’ rental service, is on a growth trajectory, supported by an expanding subscriber base and strategic partnerships. The integration of new digital features and increased fulfillment capacity solidify its presence in the rapidly growing rental market, positioning it for long-term success in this multi-billion-dollar industry.

Free People continues to perform well in both retail and wholesale segments due to its focus on functional yet stylish activewear. The FP Movement line has resonated strongly with its target audience, fueling growth. Free People's expansion strategy signals confidence in maintaining its momentum within the Urban Outfitters portfolio.

Urban Outfitters itself benefits from effective pricing strategies, strong inventory management, and the seamless integration of digital and physical retail. The company remains competitive in the fast-changing retail landscape by staying responsive to evolving consumer behaviors while maintaining profitability.

URBN’s Strong Holiday Performance Across Digital & Wholesale

For the two months ending Dec. 31, 2024, URBN recorded a 10% year-over-year increase in total net sales. The Retail segment saw a 7% rise in net sales, with comparable sales up 6%. This growth was largely driven by a strong digital performance, which posted high-single-digit gains, while brick-and-mortar store sales experienced low-single-digit growth.

Within the Retail segment, Anthropologie and Free People recorded year-over-year comparable net sales increases of 10% and 9%, respectively, while Urban Outfitters saw a 4% decline. FP Movement achieved impressive 23% year-over-year growth, whereas the broader Free People brand recorded a 6% increase. Nuuly’s net sales grew 55%, fueled by a 53% rise in active subscribers from the previous year.

The Wholesale segment also delivered strong results, with net sales climbing 29% year over year, driven by increased Free People wholesale sales, particularly among specialty retailers and department stores.

Is Urban Outfitters a Value Play Stock?

The company is currently trading at a notable low price-to-sales (P/S) multiple, below the averages of both the industry and the sector. With a forward 12-month P/S of 0.89, URBN is priced lower than the industry average of 1.78 and the sector average of 1.64. This undervaluation highlights its potential for investors seeking attractive entry points. URBN's Value Score of B emphasizes its investment appeal.

URBN Looks Attractive From a Valuation Standpoint

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Here's How Estimates Stack Up for URBN

The positive sentiment surrounding Urban Outfitters is reflected in the upward revisions of the Zacks Consensus Estimate for earnings per share. In the past 30 days, analysts have increased their estimates for the current quarter, resulting in an upward revision of 2 cents to 89 cents. The consensus estimate for earnings for the next quarter has also advanced by 3 cents to 77 cents per share. This indicates year-over-year growth of 29% and 11.6%, respectively.

The Zacks Consensus Estimate for the current and next quarter’s sales is pegged at $1.63 billion and $1.27 billion, respectively, implying year-over-year growth of 9.4% and 5.8%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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Final Thought on Urban Outfitters

URBN presents a strong investment opportunity, driven by robust sales growth, strategic expansion and solid financial performance. With key segments like Anthropologie, Free People and Nuuly fueling momentum, the company has outperformed industry peers and the broader market. The company’s attractive valuation, rising earnings estimates and operational efficiency further enhance its appeal. As URBN continues to demonstrate resilience and market confidence, investors may find it a compelling choice for long-term growth. The company currently sports a Zacks Rank #1 (Strong Buy).

Other Key Picks

Some other top-ranked stocks are Boot Barn Holdings, Inc. BOOT, Genesco Inc. GCO and Deckers Outdoor Corporation DECK.

Boot Barn is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.

Genesco is a specialty retail and branded company selling footwear and accessories in retail stores. It currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for Genesco’s fiscal 2025 earnings and revenues indicates growth of 67.9% and 1.5%, respectively, from the fiscal 2024 reported figures. GCO delivered a trailing four-quarter average earnings surprise of 36.9%.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It flaunts a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 20% and 15.3%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.8%.

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