What are the investment strengths of Urban Outfitters Inc (URBN)?

Capital-light model: 403M FCF on 230M capex (1.75x conversion) with zero goodwill risk and tangible book equals total equity at 2.7B Earnings momentum: EPS 5.28 growing 16% 1Y and 47% 3Y CAGR while industry median EPS declining 11%

What are the investment risks for Urban Outfitters Inc (URBN)?

Discretionary retail exposure: 6B revenue concentrated in fashion/home with no dividend buffer (0% payout vs industry 2%) Valuation stretched: P/S 1.16 is 2.6x industry median 0.44 despite gross margin below peers

Urban Outfitters Inc

URBN

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Urban Outfitters Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-29

Snapshot

ROE TTM 19.3% vs industry median 9.7% - 2x capital efficiency advantage with zero goodwill on balance sheet[Return on Equity]
EPS growth 3Y CAGR 47% vs revenue 3Y CAGR 9% - operating leverage driving 5x earnings amplification[EPS Growth 3Y]
FCF TTM 403M (6.7% yield on market cap) with debt/equity 0.44 - self-funding growth capacity[Free Cash Flow]

Watch Triggers

Gross Margin TTM: Falls below 33% — Would signal promotional pressure eroding pricing power and margin expansion thesis
Change in Inventory: Turns positive (inventory build) — Current 144M reduction is bullish; reversal signals demand weakness or buying missteps
Free Cash Flow TTM: Drops below 300M — 25% decline would compress FCF yield below 4.5%, reducing valuation support

Bull Case

Capital-light model: 403M FCF on 230M capex (1.75x conversion) with zero goodwill risk and tangible book equals total equity at 2.7B

Free Cash Flow TTMTangible Book ValueCapital Expenditure TTM

Earnings momentum: EPS 5.28 growing 16% 1Y and 47% 3Y CAGR while industry median EPS declining 11%

EPS TTMEPS Growth 1YEPS Growth 3Y

Bear Case

Discretionary retail exposure: 6B revenue concentrated in fashion/home with no dividend buffer (0% payout vs industry 2%)

Total Revenue TTMDividend Payout Ratio Avg 7Y

Valuation stretched: P/S 1.16 is 2.6x industry median 0.44 despite gross margin below peers

P/S RatioGross Margin TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Margin expansion runway intact as Nuuly rental scales and Anthropologie outperforms

1-3ymed

Operating margin 9.5% vs 3.8% industry - room to expand further
Gross profit 1Y growth 13% outpacing revenue 12%
Inventory down 144M while payables up 69M - working capital efficiency

Operating margin TTM 9.5% vs industry 3.8%Gross margin TTM 35.8% near industry median 39.6%ROIC TTM 13.3% vs industry 4.3%

Valuation Context

Caveats

Public Strategies Rankings

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URBN Fundamentals

Retail Trade → Clothing and Clothing Accessories Stores

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$6.08B		—
Enterprise Value	$6.93B		—
P/E Ratio	13		—
Total Revenue - TTM	$6.17B	+11.1%	—
Earnings Per Share (diluted) - TTM	$5.06	+18.8%	—
Operating Margin - TTM	9.82%	+1.3%	—
Net Margin - TTM	7.54%	+0.3%	—
Free Cash Flow - TTM	$315.02M	-1.6%	—
Return on Common Equity - TTM	17.6%	+0.0%	—
Beta 5Y (Monthly)	unknown		—

URBN Dividend History

No dividends

URBN Stock Splits

3 stock splits

09/26/050.5:1 split

07/12/040.5:1 split

09/05/020.5:1 split

URBN SEC Filings

Filing Date	Report Date	Report Type	Filing Link
04/01/26	01/31/26	Unknown	0001193125-26-137916
12/10/25	10/31/25	10-Q	0001193125-25-314313
09/09/25	07/31/25	10-Q	0001193125-25-199199
06/09/25	04/30/25	10-Q	0000950170-25-083755
04/01/25	01/31/25	10-K	0000950170-25-048506
12/10/24	10/31/24	10-Q	0000950170-24-134967
09/09/24	07/31/24	10-Q	0000950170-24-104783
06/10/24	04/30/24	10-Q	0000950170-24-071322
04/01/24	01/31/24	10-K	0000950170-24-039320
12/11/23	10/31/23	10-Q	0000950170-23-069407
09/11/23	07/31/23	10-Q	0000950170-23-047479
06/09/23	04/30/23	10-Q	0000950170-23-027275
04/03/23	01/31/23	10-K	0000950170-23-011597
12/12/22	10/31/22	10-Q	0000950170-22-026390
09/09/22	07/31/22	10-Q	0001564590-22-031401
06/09/22	04/30/22	10-Q	0001564590-22-022876
04/01/22	01/31/22	10-K	0001564590-22-013232
12/10/21	10/31/21	10-Q	0001564590-21-060025
09/09/21	07/31/21	10-Q	0001564590-21-047501
06/09/21	04/30/21	10-Q	0001564590-21-032272
04/01/21	01/31/21	10-K	0001564590-21-017306
12/10/20	10/31/20	10-Q	0001564590-20-056727
09/09/20	07/31/20	10-Q	0001564590-20-042978
06/30/20	04/30/20	10-Q	0001564590-20-031246
03/31/20	01/31/20	10-K	0001564590-20-014397
12/10/19	10/31/19	10-Q	0001564590-19-045657
09/09/19	07/31/19	10-Q	0001564590-19-034362
06/10/19	04/30/19	10-Q	0000950123-19-005950
04/01/19	01/31/19	10-K	0001564590-19-010433
12/10/18	10/31/18	10-Q	0001564590-18-030731
09/10/18	07/31/18	10-Q	0001564590-18-022875
06/11/18	04/30/18	10-Q	0001564590-18-015394
04/02/18	01/31/18	10-K	0001564590-18-007408
12/11/17	10/31/17	10-Q	0001564590-17-024798
09/06/17	07/31/17	10-Q	0001564590-17-018334
06/08/17	04/30/17	10-Q	0001193125-17-197614
04/03/17	01/31/17	10-K	0001193125-17-108506
12/12/16	10/31/16	10-Q	0001193125-16-790744
09/08/16	07/31/16	10-Q	0001193125-16-704216
06/09/16	04/30/16	10-Q	0001193125-16-617827
03/31/16	01/31/16	10-K	0001193125-16-525832
12/08/15	10/31/15	10-Q	0001193125-15-397753
09/09/15	07/31/15	10-Q	0001193125-15-315908
06/09/15	04/30/15	10-Q	0001193125-15-217982
04/01/15	01/31/15	10-K	0001193125-15-116065
12/10/14	10/31/14	10-Q	0001193125-14-438957
09/09/14	07/31/14	10-Q	0001193125-14-336729
06/09/14	04/30/14	10-Q	0001193125-14-230375
04/01/14	01/31/14	10-K	0001193125-14-125999
12/10/13	10/31/13	10-Q	0001193125-13-468431
09/09/13	07/31/13	10-Q	0001193125-13-361504
06/10/13	04/30/13	10-Q	0001193125-13-253439
04/01/13	01/31/13	10-K	0001193125-13-136738
12/10/12	10/31/12	10-Q	0001193125-12-496993
09/10/12	07/31/12	10-Q	0001193125-12-386655
06/11/12	04/30/12	10-Q	0001193125-12-266737
04/02/12	01/31/12	10-K	0001193125-12-146029
12/12/11	10/31/11	10-Q	0001193125-11-338130
09/06/11	07/31/11	10-Q	0001193125-11-241176
06/08/11	04/30/11	10-Q	0001193125-11-161261
04/01/11	01/31/11	10-K	0001193125-11-085784
12/10/10	10/31/10	10-Q	0001193125-10-277685
09/08/10	07/31/10	10-Q	0001193125-10-206514
06/08/10	04/30/10	10-Q	0001193125-10-134349
04/01/10	01/31/10	10-K	0001193125-10-073888
12/10/09	10/30/09	10-Q	0001193125-09-250560
09/09/09	07/31/09	10-Q	0001193125-09-188740
06/09/09	04/30/09	10-Q	0001193125-09-127246
04/01/09	01/28/09	Unknown	--
12/10/08	10/30/08	Unknown	--
09/09/08	07/31/08	8-K	0001193125-08-163889
06/09/08	04/30/08	10-Q	0001193125-08-130237
03/28/08	01/29/08	Unknown	--
12/05/07	10/30/07	Unknown	--
09/05/07	07/31/07	10-Q	0001193125-07-195541
06/08/07	04/30/07	10-Q	0001193125-07-132349
03/30/07	01/28/07	Unknown	--
12/08/06	10/30/06	Unknown	--
09/11/06	07/31/06	10-Q	0001193125-06-188699
06/09/06	04/30/06	10-Q	0001193125-06-127404
04/12/06	01/28/06	Unknown	--
12/12/05	10/30/05	Unknown	--
09/08/05	07/31/05	10-Q	0001193125-05-182219
06/09/05	04/30/05	10-Q	0001193125-05-122998
04/18/05	01/28/05	Unknown	--
12/10/04	10/30/04	Unknown	--
09/09/04	07/31/04	10-Q	0001193125-04-154375
06/09/04	04/30/04	10-Q	0001193125-04-100815
04/15/04	01/29/04	Unknown	--
12/05/03	10/30/03	Unknown	--
09/12/03	07/31/03	10-Q	0001193125-03-048981
06/06/03	04/30/03	10-Q	0001193125-03-008553
04/28/03	01/28/03	Unknown	--
12/13/02	10/31/02	10-Q	0000950131-02-004861
09/12/02	07/31/02	10-Q	0001021408-02-011764
05/16/02	04/30/02	10-Q	0001021408-02-007342
01/31/02	01/28/02	Unknown	--
12/07/01	10/30/01	Unknown	--
09/14/01	07/31/01	10-Q	0000950109-01-503549
06/13/01	04/30/01	10-Q	0001036050-01-500768
04/16/01	01/28/01	Unknown	--
12/08/00	10/30/00	Unknown	--
09/13/00	07/31/00	10-Q	0000950115-00-001078
06/13/00	04/30/00	10-Q	0000950115-00-000827
04/14/00	01/29/00	Unknown	--