Earnings Alerts

Urban Outfitters (URBN) Earnings: 2Q Net Sales Surpass Estimates Despite Post-Market Share Dip

  • Urban Outfitters‘ net sales for the second quarter reached $1.50 billion, exceeding the estimate of $1.48 billion.
  • Specific brand sales included:
    • Urban Outfitters: $333.2 million (estimate: $319.3 million)
    • Anthropologie: $607.0 million (estimate: $607.3 million)
    • Free People: $415.0 million (estimate: $409.2 million)
    • Menus & Venues: $10.7 million (estimate: $11.1 million)
    • Nuuly: $138.9 million (estimate: $134.7 million)
  • Wholesale net sales rose to $76.6 million, beating the estimate of $72.4 million.
  • Retail net sales achieved $1.29 billion, surpassing the estimate of $1.27 billion.
  • Earnings per share (EPS) stood at $1.58.
  • Comparable retail segment sales increased by 5.6%, above the estimated growth of 5.05%.
  • Wholesale sales rose by 18.1%.
  • Gross margin was reported at 37.6%, slightly above the estimate of 37.4%.
  • Inventory levels reached $696.2 million, higher than the estimate of $670.3 million, marking an increase of 15.1%.
  • Company executives remarked on the outstanding performance across all segments, indicating strong brand positioning and effective strategy.
  • Despite positive sales results, shares dropped 3.9% in post-market trading, closing at $75.00 with 2,225 shares exchanged.
  • Analyst recommendations included 5 buys, 7 holds, and 1 sell.

Urban Outfitters on Smartkarma

On Smartkarma, a platform for independent investment research, analyst coverage of Urban Outfitters by Baptista Research highlights the company’s impressive performance in the first quarter of fiscal year 2026. The report mentions that Urban Outfitters, Inc. (URBN) achieved record sales and profits, surpassing expectations. Total sales for the quarter increased by 11% compared to the previous year, reaching $1.3 billion. All five of URBN’s brands showed positive sales comps, with four of them recording record first-quarter sales figures. Baptista Research leans bullish on Urban Outfitters, emphasizing the company’s smart supply chain moves and inventory mastery.


A look at Urban Outfitters Smart Scores

FactorScoreMagnitude
Value3
Dividend1
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Urban Outfitters, Inc. boasts a promising long-term outlook according to the Smartkarma Smart Scores. With a strong Growth score of 4 and impressive Momentum score of 5, the company exhibits robust potential for expansion and upward movement in the market. Its focus on continually evolving and adapting to consumer trends contributes to its positive momentum.

While the company shines in Growth and Momentum, its Value score of 3 and Resilience score of 3 indicate a balanced approach to financial stability and long-term viability. However, Urban Outfitters lags behind in the Dividend category with a score of 1, suggesting that investors seeking dividends may need to look elsewhere. Overall, Urban Outfitters‘ strategic positioning in the fashion retail sector, with a strong emphasis on young women’s casual wear, positions it well for sustained growth and market performance.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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