Latest news with #UrbanOutfitters
Yahoo
19-06-2025
- Business
- Yahoo
4 Retail Stocks Holding Up Despite Sales Decline for Second Month
U.S. retail sales declined for the second straight month in May, signaling a more cautious behavior among American consumers. According to the Commerce Department, retail sales fell 0.9% month over month to $715.4 billion, following a revised reading of a 0.1% decrease in April. This was the steepest monthly fall witnessed since January. The weaker-than-expected results point to underlying pressures impacting consumer confidence and purchasing drop in retail activity was primarily due to reduced purchases of motor vehicles (down 3.5%), which had previously seen a surge as consumers rushed to buy ahead of potential tariff increases. Building materials and gasoline also posted notable declines of 2.7% and 2%, respectively, adding to the broader weakness. Out of 13 major retail categories tracked by the Commerce Department, more than half reported lower sales in threats and geopolitical tensions appear to be taking a toll on consumer sentiment. The earlier spike in March sales now looks like a response to anticipated economic headwinds rather than the beginning of a sustained spending wave. With both global and domestic uncertainties mounting, it is prudent to invest in retail stocks — Sprouts Farmers Market, Inc. SFM, Urban Outfitters, Inc. URBN, BJ's Wholesale Club Holdings, Inc. BJ and Costco Wholesale Corporation COST — that are better positioned to navigate shifts in consumer behavior. Image Source: Zacks Investment Research Sprouts Farmers, operating in a highly fragmented grocery industry, is a compelling option. The company has adopted a multifaceted approach to expand its customer base and cater to evolving consumer preferences. Through product innovation, targeted marketing and competitive pricing, Sprouts Farmers ensures that its offerings resonate with its diverse customer base. The company's commitment to offering fresh, natural and organic products aligns with the growing consumer demand for healthier food options. Its store expansion and growing private label mix reflect solid momentum ahead. The Zacks Consensus Estimate for Sprouts Farmers' current financial-year sales and earnings per share (EPS) implies growth of 13.7% and 35.5%, respectively, from the year-ago reported figure. SFM, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 16.5%, on average. You can see the complete list of today's Zacks #1 Rank stocks here. URBN's major brands — Anthropologie, Free People and Urban Outfitters — are showing momentum across both digital and physical channels, driven by curated assortments, brand-right pricing and improved marketing execution. Growth in newer concepts like FP Movement and Nuuly adds to URBN's multi-brand leverage, expanding its reach and deepening customer engagement. Across the board, a focus on customer acquisition, full-price selling and creative content is enhancing profitability. Strategic initiatives such as store optimization, supply-chain agility and international synergies further reinforce Urban Outfitters' long-term growth Zacks Consensus Estimate for Urban Outfitters' current financial-year sales and EPS suggests growth of 8.5% and 22.2%, respectively, from the year-ago reported figure. URBN, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 29%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.) BJ's Wholesale continues to demonstrate strong performance, fueled by its strategic focus on membership growth and digital innovations. The company remains committed to enhancing omnichannel capabilities and providing value to customers. These endeavors have contributed to growth in membership signups and renewals, resulting in higher membership fee income. Offering members convenient options such as same-day delivery, curbside pick-up, and buy online and pick up in-club, the company ensures an engaging and seamless digital shopping experience. BJ's Wholesale has been steadily increasing its footprint, targeting high-growth regions and underserved markets. The Zacks Consensus Estimate for BJ's Wholesale's current financial-year sales and EPS suggests growth of 5.5% and 6.2%, respectively, from the year-ago reported figure. BJ, which carries a Zacks Rank #3 (Hold), has a trailing four-quarter earnings surprise of 17.7%, on average. Costco has navigated market ups and downs effectively, driven by strategic investments, a customer-centric approach, merchandise initiatives and a strong emphasis on memberships. By identifying untapped markets and tailoring offerings to customer preferences, Costco has deepened its market presence. The company's high membership renewal rates, efficient supply chain management and bulk purchasing power ensure competitive pricing and foster strong customer Zacks Consensus Estimate for Costco's current financial-year sales and EPS calls for growth of 8% and 12%, respectively, from the year-ago reported figure. COST, which carries a Zacks Rank #3, has a trailing four-quarter earnings surprise of 0.4%, on average. 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 BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
17-06-2025
- Business
- Yahoo
Nuuly is dominating the apparel rental market
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Apparel rental company Nuuly has 'quickly become an industry leader,' with over twice the active subscribers as the next-largest apparel subscription business in the U.S., Rent the Runway, according to a Walls Fargo note lead by Ike Boruchow. The Urban Outfitters-owned company has captured subscribers that either previously used apparel rental or have never rented before. Most of its under 30 customers this year were new to rental. Nuuly also maintains one of the highest retention rates in the industry, with a 90% retention rate in year one and around a 40% retention rate in years three to five, per the report. One of Nuuly's most important competitive advantages is its ability to obtain inventory at cost from its sister companies, including Urban Outfitters, Anthropologie and Free People. Those products make up around 45% of its current inventory, according to Wells Fargo analysts. In Urban Outfitters' latest earnings, Nuuly's net sales were $124.4 million — an almost 60% increase year over year. The company saw a 53% increase in average active subscribers, which contributed to a 60% increase in brand revenue and added almost 400 basis points of revenue growth to Urban Outfitters' top line. 'The performance at Nuuly over the past year has fortified our confidence that our business model is strong, and the rental market opportunity is very large,' Urban Outfitters COO Frank Conforti said on a first quarter 2026 earnings call with analysts. 'We are thrilled that Nuuly now appears to be leading the industry with an opportunity to continue to see significant growth. Based on our current plans, we believe Nuuly could deliver a healthy double-digit revenue and profit growth in the second quarter.' Nuuly's revenue surge comes as the apparel rental site sets its sights on a high sales goal. After turning a profit during its last fiscal year, Nuuly President Dave Hayne said the company aims to reach $500 million in sales this year, a milestone he called 'an achievable goal.' Urban Outfitters also recently expanded the brand's fulfillment capacity. Last year, the company opened a 600,000-square-foot fulfillment center for Nuuly in Raymore, Missouri. The facility includes full laundering and clothing alteration capabilities and was expected to provide Nuuly with the capacity to triple its active subscriber base. Competitor Rent the Runway recently reported that Q1 revenue fell 7.2% year over year to $69.6 million. Its average active subscribers dipped 2% from the year-ago quarter to 135,896. Nuuly was launched in 2019 and offers 25,000 styles from over 500 brands and currently has around 380,000 subscribers. Recommended Reading SKU'd: Balenciaga is ready to dress you for the apocalypse Sign in to access your portfolio
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
16-06-2025
- Business
- Yahoo
Urban Outfitters, Inc. (URBN): It's An 'Outlier,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where Urban Outfitters, Inc. (NASDAQ:URBN) stands against other stocks that Jim Cramer discusses. Urban Outfitters, Inc. (NASDAQ:URBN) is an American firm that sells apparel, home items, and other products. Its shares are up by 19% year-to-date, with the gains helped by a massive 22.8% jump in May. The stock soared after a strong first-quarter earnings performance which saw Urban Outfitters, Inc. (NASDAQ:URBN)'s earnings-per-share of $1.16 smash analyst estimates of $0.83 out of the park. The firm's revenue of $1.33 billion also beat estimates of $1.29 billion. Here's what Cramer said about the firm: 'Dave & Buster and Urban Outfitters are the two outliers. People forgot about them, they let them forget, and that's just wrong. Urban's great.' A frontline retail worker organizing apparel products in a store. Cramer discussed Urban Outfitters, Inc. (NASDAQ:URBN) in detail after its earnings report. Here's what he said: 'Urban Outfitters is made up of its eponymous flagship store along with Anthropologie and Free People. They're all doing incredibly well. While we acknowledge the potential of URBN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
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
