Key Stats for Urban Outfitters Stock
- Pre- Market Price Change for URBN stock: 18%
- $URBN Share Price as of Nov. 25: $68
- 52-Week High: $80
- $URBN Stock Price Target: $79
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What Happened?
Urban Outfitters (URBN) stock jumped sharply on Thursday morning after it delivered a standout third-quarter earnings report that beat expectations across the board.
The retailer posted earnings of $1.28 per share, crushing Wall Street’s estimate of $1.18 by over 8%. Revenue hit $1.53 billion, topping the $1.49 billion consensus and marking a solid 12% increase from last year’s $1.36 billion.
The results showed strength across all of Urban Outfitters’ brands and geographies. The company’s flagship Urban Outfitters brand delivered an impressive 13% comparable sales increase, including a 10% comp in North America and a remarkable 17% comp in Europe. This marked the first double-digit comp for the Urban brand in quite some time.
The Anthropologie brand continued its hot streak with an 8% comp, marking its 19th consecutive quarter of positive comparable sales.
Meanwhile, the Free People brand posted a 4% comp with strong performance from FP Movement. The company’s Nuuly rental subscription service grew revenue by 49%, adding nearly 118,000 average active subscribers compared to last year.
CEO Richard Hayne highlighted that traffic drove the strong performance, with both store traffic and online sessions up sharply during the quarter.
The company maintained its gross margin improvement despite tariff headwinds, with gross margins expanding by 31 basis points to 36.8%.
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What the Market Is Telling Us About URBN Stock
The surge in URBN stock reflects investor enthusiasm about the company’s broad-based momentum heading into the critical holiday season.
Management noted that November sales trends remain robust, with retail comparable sales currently running slightly ahead of the company’s mid-single-digit Q4 comp guidance.
The Urban Outfitters brand turnaround is noteworthy. The brand posted a low single-digit operating profit margin in Q3, driven by strong profit growth in Europe and a meaningful reduction in losses in North America. Management indicated the brand could potentially turn profitable on an annual basis next year.
Urban Outfitters is expecting high single-digit total company sales growth in Q4, with continued expansion in gross and operating margins.
For the full year, the company projects roughly 100 basis points of gross margin improvement despite tariff pressures of approximately 60-75 basis points.
The company is managing tariff impacts through vendor negotiations, shifting countries of origin, adjusting transportation methods, and strategic pricing.
Management emphasized they’ve protected opening price points across all brands and expect most price increases are now behind them.
With URBN stock rallying on strong execution across multiple brands, robust traffic trends, and improving profitability, investors appear confident the retailer can continue gaining market share through the holiday season and into 2026.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
