Latest news with #URBN
Globe and Mail
16-06-2025
- Business
- Globe and Mail
What's Driving the Record Gross Margin at Urban Outfitters This Year?
Urban Outfitters Inc. URBN reported a strong start to fiscal 2026, driven by improved profitability and greater operational efficiency. In the first quarter, gross profit rose 19.8% year over year to a record $489.1 million. This resulted in a gross margin of 36.8%, an expansion of 278 basis points from the prior year. The margin improvement included a 36-basis-point benefit from a one-time $4.8-million gain and a 38-basis-point lift from the absence of last year's impairment and lease abandonment charges. Excluding these factors, URBN achieved a core margin increase of 204 basis points. This was primarily driven by lower markdowns in the Retail segment, particularly at the Urban Outfitters brand. Additional improvements came from reduced delivery costs, supported by lower carrier rates and fewer packages per order, as well as improved leverage on store occupancy costs resulting from stronger comparable retail sales. Operating income surged 72% to $128.2 million from the prior year. As a percentage of sales, the operating margin moved up 340 basis points to 9.6%. Strong full-price selling, disciplined inventory management, and strategic marketing spend contributed to this outperformance. Anthropologie and Free People continued to deliver steady double-digit margins, reinforcing the strength of URBN's brand portfolio. Management expects the second-quarter gross margin to improve 50-100 basis points year over year. Gains from lower markdowns and occupancy leverage are expected to offset some pressure from reduced initial product margins due to higher U.S. tariffs. Also, the company remains confident in achieving its 10% operating margin goal for fiscal 2026. With solid execution across brands and momentum building in both revenue and margin performance, URBN appears well-positioned to meet its profitability targets and potentially set a new long-term standard for operational excellence. Urban Outfitters' Zacks Rank & Share Performance Details Shares of this Zacks Rank #1 (Strong Buy) company have rallied 38.4% in the past three months compared with the Zacks Retail-Apparel and Shoes industry's modest 4% growth. This leading lifestyle specialty retailer's ongoing strategic initiative and operational efficiencies have enabled it to outperform the broader Retail-Wholesale sector and the S&P 500 index's growth of 2.3% and 5.2%, respectively, during the same period. Image Source: Zacks Investment Research Closing at $68.01 as of Friday, the URBN stock is trading 10.3% below its 52-week high of $75.80 attained on May 28, 2025. Technical indicators support Urban Outfitters' strong performance. The stock is trading above its 50 and 200-day SMAs (simple moving averages) of $58.41 and $49.65, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors' confidence in URBN's financial health and growth prospects. URBN Trades Above 50 & 200-Day Moving Averages Is URBN a Value Play Stock? Urban Outfitters stands out as a compelling value play within the industry, trading at a forward 12-month price-to-sales ratio of 0.99, below the industry average of 1.65 and the sector average of 1.59. This undervaluation highlights its potential for investors seeking attractive entry points in the retail space. URBN's Value Score of A emphasizes its investment appeal. Estimate Revisions Favor Urban Outfitters Stock The positive sentiment surrounding URBN is reflected in the upward revisions in the Zacks Consensus Estimate for earnings. In the past seven days, the consensus estimate has moved up four cents to $4.96 per share for the current fiscal year and by five cents to $5.45 for the next fiscal year, indicating year-over-year growth of 22.2% and 9.9%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The Zacks Consensus Estimate for the current and next fiscal year's sales is pegged at $6.02 billion and $6.42 billion, implying year-over-year growth of 8.5% and 6.6%, respectively. Other Key Picks Some other top-ranked stocks are Stitch Fix SFIX, Canada Goose GOOS, and Allbirds Inc. BIRD. Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Stitch Fix's current fiscal year's earnings implies growth of 69.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%. Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for Canada Goose's current fiscal year's earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%. Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for BIRD's current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis Report Allbirds, Inc. (BIRD): Free Stock Analysis Report
Yahoo
13-06-2025
- Business
- Yahoo
Baird Upgrades Urban Outfitters, Inc. (URBN) on Nuuly Growth
Urban Outfitters, Inc. (NASDAQ:URBN) is among the 10 Best Growth Stocks Under $100 to Buy Now. Mark Altschwager, an analyst at Baird, raised the price target for Urban Outfitters, Inc. (NASDAQ:URBN) to $90 from $75, while elevating the rating from 'Neutral' to 'Outperform'. This price appreciation of 20% underscores the company's position for a turnaround. The company recently reported strong first-quarter results, with a 74% increase in net income stemming from margin improvement. The investors are closely monitoring the giant's subscription/rental business, Nuuly, which is anticipated to grow 43% to $540m this year. A frontline retail worker organizing apparel products in a store. To sum it up, Urban Outfitters, Inc. (NASDAQ:URBN) is a unique 'growth at a reasonable price' stock that is witnessing strong comp sales growth in each of its brands, and with even more room to grow via both price hikes and traffic increases. As long as the company is able to capitalize on Nuuly, we can expect it to show sustained momentum. Urban Outfitters, Inc. (NASDAQ:URBN) is a Pennsylvania-based fashion business that operates through three segments: Retail, Wholesale, and Subscription. Incepted in 1970, the company serves its customers directly through websites and retail stores, as well as social media and external sources. While the broader market delivered nearly 100% return in five years, URBN has exhibited a return of 295%. While we acknowledge the potential of URBN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
3 Stocks Showing Positive Momentum Despite Trade Tensions
Wall Street may encounter volatility as trade tensions between the United States and China reignite. The United States blamed China for breaching a temporary trade deal, while Beijing accused Washington of failing to support the agreement, a telltale sign that negotiations between the countries have soured. In this uncertain situation, it's challenging to find stocks with strong uptrends, as they are mostly showing modest gains. However, by applying Richard Driehaus's investment strategy, better known as the 'buy high and sell higher' theory, one can discover stocks displaying positive momentum. To that end, Urban Outfitters, Inc. URBN, Phibro Animal Health Corporation PAHC and Strattec Security Corporation STRT are demonstrating positive momentum and defying gyrations in the broader market. Regarding the strategy, Driehaus once said, 'I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in decline and try to guess when it will turn around.' In line with this insight, the American. The Association of Individual Investors ('AAII') considered the percentage 50-day moving average as one of the key criteria before creating a portfolio following Driehaus' philosophy. It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend. Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term. To make the strategy more profitable, we have considered only those stocks that have a Zacks Rank #1 (Strong Buy) and a Momentum Score of A or B. Our research shows that stocks with a Style Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential. • Zacks Rank equal to #1 Whether the market is good or bad, stocks with a Zacks Rank #1 have a proven history of outperformance. You can see the complete list of today's Zacks #1 Rank stocks here. • Last 5-year average EPS growth rates above 2% Strong EPS growth history ensures an improving business • Trailing 12-month EPS growth greater than 0 and industry median Higher EPS growth compared to the industry average indicates superior earnings performance • Last four-quarter average EPS surprise greater than 5% Solid EPS surprise history indicates better price performance • Positive percentage change in 50-day moving average and relative strength over 4 weeks Positive percentage change in the 50-day moving average and the relative strength signal uptrend • Momentum Score equal to or less than B A favorable momentum score indicates that it is ideal for taking advantage of the momentum with the highest probability of success. These few parameters have narrowed the universe of more than 7,743 stocks to only six. Here are three of the six stocks: Urban Outfitters offers lifestyle products and services. Urban Outfitters has a Momentum Score of A. The trailing four-quarter earnings surprise for URBN is 29%, on average. Phibro Animal Health is an animal health and mineral nutrition company with operations in the United States, Israel, Brazil, Ireland and internationally. Phibro Animal Health has a Momentum Score of B. The trailing four-quarter earnings surprise for PAHC is 30.6%, on average. Strattec Security primarily markets automotive security and access control products under the VAST Automotive Group brand in North America. Strattec Security has a Momentum Score of B. The trailing four-quarter earnings surprise for STRT is 195.8%, on average. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks' portfolios and strategies are available at: Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Urban Outfitters Seeing Inflows
URBN sells clothing through three primary channels: retail, wholesale, and subscription. It operates through multiple brands, including Urban Outfitters, Anthropologie, BHLDN, Free People, Terrain, and Nuuly. URBN's focus on customer acquisition, operational efficiency, and digital innovation has driven significant growth. In fact, the company is planning to open 64 new stores this fiscal year, while closing 17 stores. As for earnings, URBN's first-quarter fiscal 2026 report reflected record-breaking quarterly sales of $1.3 billion, which is an 11% gain. URBN produced a 20% increase in gross profit ($489 million). Additionally, every brand the company manages delivered positive annual comparable sales, with four brands posting record sales. The Nuuly brand grew by 60% and added 110,000 subscribers over the prior year. It's no wonder URBN shares are up 32% this year – and they could rise more. MoneyFlows data shows how Big Money investors are betting heavily on the forward picture of the stock. Institutional volumes reveal plenty. In the last year, URBN has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in URBN shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of discretionary names are under accumulation right now. But there's a powerful fundamental story happening with Urban Outfitters. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, URBN has had strong sales and earnings growth: 3-year sales growth rate (+6.9%) 3-year sales EPS rate (+25%) Source: FactSet Also, EPS is estimated to ramp higher this year by +9.6%. Now it makes sense why the stock has been powering to new heights. URBN has a track record of strong financial performance. Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term. Urban Outfitters has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's made the rare Outlier 20 report multiple times in the last year. The blue bars below show when URBN was a top pick…boosted by Big Money inflows: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The URBN rally isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in URBN at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire The Exodus From Safe Havens Outlier Money Flows Lift Insulet Monster's Comeback Continues Big Money Buys LPL Financial Shares US Public Debt Trajectory and Interest Payments Set to Worsen and Exceed Sovereign Peers Big Money Keeps Buying Palantir Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Top 4 Value Stocks With Impressive PEG Ratios to Buy Now
At a time when volatility is striking every second day, investors can rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price. Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks - Urban Outfitters Inc. URBN, Dentsply Sirona XRAY, LATAM Airlines Group LTM and Exelixis EXEL. However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to 'value traps.' In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent. There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount. However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio. The PEG ratio is defined as (Price/Earnings)/Earnings Growth Rate A low PEG ratio is always better for value investors. While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock. There are some drawbacks to using the PEG ratio. It doesn't consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term. Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration. Here are some of the screening criteria for a winning strategy: PEG Ratio less than X Industry Median P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes) Zacks Rank #1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.) Market Capitalization greater than $1 billion (This helps us to focus on companies that have strong liquidity.) Average 20-Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.) Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.) Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential. Here are four out of the 13 stocks that qualified the screening: Urban Outfitters: Based in Philadelphia, PA, Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. The company's merchandises are generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. Urban Outfitters has operations in the United States, Canada and Europe. URBN currently has a Zacks Rank #1 and a Value Score of B. Urban Outfitters also has an impressive five-year historical growth rate of 20%. Dentsply Sirona: Headquartered in York, PA, Dentsply Sirona is a global leader in the design, development, manufacture and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. After the DENTSPLY-SIRONA merger, the business has been organized into two reporting segments, Dental & Healthcare Consumables and Technologies. Apart from a discounted PEG and P/E, Dentsply Sirona currently has a Zacks Rank #2 and a Value Score of A. XRAY has a long-term expected growth rate of 7.4%. LATAM Airlines: The company and its subsidiaries offer passenger and cargo air transportation across the Americas, the Caribbean, Europe and Oceania. As of Dec. 31, 2024, LATAM Airlines served 151 destinations in 27 countries with a fleet of 347 aircraft. LTM has a Zacks Rank #1 and a Value Score of A. LATAM Airlines also has an impressive five-year expected growth rate of 14.8%. Exelixis: Based in Alameda, CA, Exelixis is a biotechnology company focused on developing and commercializing therapies for hard-to-treat cancers. It leverages its expertise and partnerships to advance a pipeline of small molecules, Antibody-Drug Conjugates, and other biotherapeutics across multiple tumor types. EXEL has an impressive long-term expected earnings growth rate of 21%. Exelixis currently has a Value Score of B and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Exelixis, Inc. (EXEL) : Free Stock Analysis Report LATAM Airlines Group S.A. (LTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
