# Urban Outfitters (URBN.US)

Canonical: https://gigainvestors.com/s/URBN

Analysis as of: 2026-10-16T07:32:45.722Z. Financial observations: FY1997–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $87.40 per share; close as of 2026-10-15.

Estimated value: low $76.12 per share, central $105.84 per share, high $123.14 per share. Buy at or below the central value $105.84 per share. Valuation as of 2026-10-16T07:32:45.722Z; scenarios are not confidence intervals.

Expected annual return: 11.5% at the stated quote. About 11.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.07×

- FY2019: 0.10×

- FY2020: 0.06×

- FY2021: 0.00×

- FY2022: 0.09×

- FY2023: 0.05×

- FY2024: 0.08×

- FY2025: 0.09×

- FY2026: 0.10×

- LTM to Jul 2026: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.7%

- ROIC, second-lowest year: 6.6%

- Typical minus recent gross margin: -1.5 pp

- Typical gross margin (annual median): 33.2%

- Recent gross margin (lower of latest and 3-year median): 34.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: 12.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 20.1%

- FY2018: 17.2%

- FY2019: 33.5%

- FY2020: 7.0%

- FY2021: 0.1%

- FY2022: 12.6%

- FY2023: 6.6%

- FY2024: 10.7%

- FY2025: 12.9%

- FY2026: 14.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.6B

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 28.4%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.6 pp

- Working capital / revenue, final three-year average: 7.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.1% vs 12.9%

- Per-share earnings: 1.78 to 4.26 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.1%

- Ordinary dilution, 5-year annual growth: -1.4%

- Market cap gain: $3.3B

- Cumulative retained earnings: $1.5B

- Diluted shares, 10-year annual growth: -3.1%

- Diluted shares, 5-year annual growth: -1.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.5%

- Per-share value change: $2.48

- Per-share value, starting three-year median: $1.78

- Per-share value, ending three-year median: $4.26

- Buybacks concentrated in cheaper years (correlation): -0.24

- Average buyback yield: 2.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $151M

- Cumulative net income, 10 years: $2.4B

- ROIC, first three-year median: 20.1%

- ROIC, last three-year median: 12.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.86

- FY2018: $0.96

- FY2019: $2.72

- FY2020: $1.67

- FY2021: $0.01

- FY2022: $3.13

- FY2023: $1.70

- FY2024: $3.05

- FY2025: $4.26

- FY2026: $5.06

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 1.16×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.24×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.4%

- FY2018: -10.0%

- FY2019: -6.9%

- FY2020: -3.2%

- FY2021: -8.0%

- FY2022: -1.3%

- FY2023: 0.5%

- FY2024: -5.4%

- FY2025: -2.2%

- FY2026: -2.2%

## Holders

- [Gavin Abrams](https://gigainvestors.com/ABI): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 3.9% a year for ten years · "URBN's Nuuly Growth Momentum Accelerates on Rising Subscriber Demand" (finance.yahoo.com, Sep 2026) · sales +5%

Story as of 2026-10-16T09:59:46.331Z; price observation 2026-10-15.

Price needs cash profits to grow 3.9% a year for ten years

- 2025-05-22: Urban Outfitters Q1 Earnings Beat, Retail Sales Rise Y/Y, Stock Up 18% ([finance.yahoo.com](https://finance.yahoo.com/news/urban-outfitters-q1-earnings-beat-153000237.html))

- 2025-08-27: Urban Outfitters Says Higher Tariffs Will Eat More of Margins ([finance.yahoo.com](https://finance.yahoo.com/m/44d1cf79-76c7-3b87-95d0-2049fac28c45/urban-outfitters-says-higher.html))

- 2025-09-09: Why Urban Outfitters (URBN) Is Up 8.8% After Strong Q2 Sales and Earnings Growth ([finance.yahoo.com](https://finance.yahoo.com/news/why-urban-outfitters-urbn-8-114919500.html))

- 2025-11-26: Urban Outfitters targets high single-digit sales growth for Q4 while expanding store footprint ([seekingalpha.com](https://seekingalpha.com/news/4526121-urban-outfitters-targets-high-single-digit-sales-growth-for-q4-while-expanding-store?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-23: URBN Q1 Deep Dive: Free People and Subscription Momentum Drive Growth Amid Tariff Uncertainty ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/urbn-q1-deep-dive-free-035655146.html))

- 2026-08-27: Urban Outfitters (URBN) Record Q2 And Raised Outlook Put Valuation Back In Focus ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/urban-outfitters-urbn-record-q2-101415139.html))

### Sales · FY2026–2027

sales +5%; source https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm; observed 2026-04-01.

- FY2018: $3.6B 

- FY2019: $4.0B 

- FY2020: $4.0B 

- FY2021: $3.4B 

- FY2022: $4.5B 

- FY2023: $4.8B 

- FY2024: $5.2B 

- FY2025: $5.6B 

- FY2026: $6.2B 

- FY2027: $6.5B 

### Gross margin · FY2026

gross margin 36%; source https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm; observed 2026-04-01.

- FY2017: 35.1% 

- FY2018: 32.5% 

- FY2019: 34.1% 

- FY2020: 31.1% 

- FY2021: 25.0% 

- FY2022: 32.8% 

- FY2023: 29.8% 

- FY2024: 33.5% 

- FY2025: 34.7% 

- FY2026: 36.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in apparel retail; annual sales are USD 6.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm (filed 2026-04-01); FY2026: revenue 6165376000; grossProfit 2217753000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); URBN.US: Urban Outfitters, Inc. offers lifestyle products and services in the United States and internationally. The company operates through three segments: Retail, Wholesale, and Subscription. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, furniture, home décor, and beauty and wellness products, as well as gifts and decorative items for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants and event venues, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company designs, develops, and markets young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People and FP Movement brands; and apparel collections under the Urban Outfitters brand. It serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.

### Why customers stay

Margins ranged from 33.5% to 36% during 2024–26; it earns 12.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2024: grossProfit / revenue = 33.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2025: grossProfit / revenue = 34.7%.

- Source: https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm (filed 2026-04-01); FY2026: grossProfit / revenue = 36%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); 10-year return on capital observations [[2017,0.20073688118857042],[2018,0.1722097060616502],[2019,0.3353798826969862],[2020,0.06982072992813576],[2021,0.0012098951030599316],[2022,0.1261033607275324],[2023,0.06599135497150475],[2024,0.10731916293562548],[2025,0.12881285216433863],[2026,0.14102692040373307]]; median 0.12745810644593553. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 28.3% of cash earnings on expansion; earns 28.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2017: growth capex 8384000; upkeep 135330000; owner earnings 218120000. Growth capex / owner earnings = 0.03843755730790391.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2018: growth capex 0; upkeep 83813000; owner earnings 152858000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2019: growth capex 0; upkeep 114924000; owner earnings 301065000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2020: growth capex 9545518.712921232; upkeep 207887481.28707877; owner earnings 72464518.71292123. Growth capex / owner earnings = 0.1317267937807908.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2022: growth capex 156757000; upkeep 105672000; owner earnings 310616000. Growth capex / owner earnings = 0.5046649238931671.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2023: growth capex 97174000; upkeep 102339000; owner earnings 159699000. Growth capex / owner earnings = 0.6084822071522051.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2024: growth capex 97138000; upkeep 102487000; owner earnings 287674000. Growth capex / owner earnings = 0.33766694244179174.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2025: growth capex 67156000; upkeep 115425000; owner earnings 402462000. Growth capex / owner earnings = 0.16686295849049101.

- Source: https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm (filed 2026-04-01); FY2026: growth capex 131639000; upkeep 128529000; owner earnings 464919000. Growth capex / owner earnings = 0.28314394550448574.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); Incremental return on capital 0.28390498977465334, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,495000],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm (filed 2026-04-01); FY2026: cash repurchases 153946000 USD.

### Are managers owners

Insiders own 33.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); URBN.US SharesStats.PercentInsiders = 33.778000000000006 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.9% yearly over ten years; actual growth was 10.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); Ten-year compound average after fade. Initial solved rate 0.04283532440439239. Price 87.4; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.8431450480343308 → FY2026 5.06401612219245. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $33.45 per share

- 2016-11: $31.60 per share

- 2016-12: $28.48 per share

- 2017-01: $26.54 per share

- 2017-02: $26.03 per share

- 2017-03: $23.76 per share

- 2017-04: $22.88 per share

- 2017-05: $18.87 per share

- 2017-06: $18.54 per share

- 2017-07: $19.59 per share

- 2017-08: $20.44 per share

- 2017-09: $23.90 per share

- 2017-10: $24.52 per share

- 2017-11: $31.12 per share

- 2017-12: $35.06 per share

- 2018-01: $34.11 per share

- 2018-02: $35.29 per share

- 2018-03: $36.96 per share

- 2018-04: $40.27 per share

- 2018-05: $41.54 per share

- 2018-06: $44.55 per share

- 2018-07: $44.40 per share

- 2018-08: $46.48 per share

- 2018-09: $40.90 per share

- 2018-10: $39.46 per share

- 2018-11: $38.09 per share

- 2018-12: $33.20 per share

- 2019-01: $32.30 per share

- 2019-02: $30.85 per share

- 2019-03: $29.64 per share

- 2019-04: $29.73 per share

- 2019-05: $22.47 per share

- 2019-06: $22.75 per share

- 2019-07: $23.81 per share

- 2019-08: $23.41 per share

- 2019-09: $28.09 per share

- 2019-10: $28.70 per share

- 2019-11: $25.66 per share

- 2019-12: $27.77 per share

- 2020-01: $25.60 per share

- 2020-02: $23.51 per share

- 2020-03: $14.24 per share

- 2020-04: $17.34 per share

- 2020-05: $16.94 per share

- 2020-06: $15.22 per share

- 2020-07: $16.54 per share

- 2020-08: $23.54 per share

- 2020-09: $20.81 per share

- 2020-10: $22.34 per share

- 2020-11: $27.38 per share

- 2020-12: $25.60 per share

- 2021-01: $27.43 per share

- 2021-02: $33.90 per share

- 2021-03: $37.19 per share

- 2021-04: $35.90 per share

- 2021-05: $39.16 per share

- 2021-06: $41.22 per share

- 2021-07: $37.18 per share

- 2021-08: $33.02 per share

- 2021-09: $29.69 per share

- 2021-10: $31.93 per share

- 2021-11: $31.67 per share

- 2021-12: $29.36 per share

- 2022-01: $28.72 per share

- 2022-02: $27.51 per share

- 2022-03: $25.11 per share

- 2022-04: $23.80 per share

- 2022-05: $21.05 per share

- 2022-06: $18.66 per share

- 2022-07: $20.48 per share

- 2022-08: $20.13 per share

- 2022-09: $19.65 per share

- 2022-10: $23.86 per share

- 2022-11: $28.94 per share

- 2022-12: $23.85 per share

- 2023-01: $27.39 per share

- 2023-02: $26.95 per share

- 2023-03: $27.72 per share

- 2023-04: $27.06 per share

- 2023-05: $30.82 per share

- 2023-06: $33.13 per share

- 2023-07: $36.37 per share

- 2023-08: $33.21 per share

- 2023-09: $32.69 per share

- 2023-10: $34.62 per share

- 2023-11: $35.70 per share

- 2023-12: $35.69 per share

- 2024-01: $38.00 per share

- 2024-02: $41.55 per share

- 2024-03: $43.42 per share

- 2024-04: $38.96 per share

- 2024-05: $41.71 per share

- 2024-06: $41.05 per share

- 2024-07: $46.05 per share

- 2024-08: $36.32 per share

- 2024-09: $38.31 per share

- 2024-10: $35.95 per share

- 2024-11: $48.73 per share

- 2024-12: $54.88 per share

- 2025-01: $55.42 per share

- 2025-02: $58.19 per share

- 2025-03: $52.40 per share

- 2025-04: $52.78 per share

- 2025-05: $69.90 per share

- 2025-06: $72.54 per share

- 2025-07: $75.28 per share

- 2025-08: $67.08 per share

- 2025-09: $71.43 per share

- 2025-10: $64.61 per share

- 2025-11: $74.07 per share

- 2025-12: $75.26 per share

- 2026-01: $70.85 per share

- 2026-02: $66.20 per share

- 2026-03: $63.35 per share

- 2026-04: $70.34 per share

- 2026-05: $72.65 per share

- 2026-06: $70.86 per share

- 2026-07: $74.18 per share

- 2026-08: $80.69 per share

- 2026-09: $76.38 per share

- 2026-10: $87.40 per share

## Annual estimated value (USD per share)

- FY2017: low $27.87 per share, central $35.67 per share, high $41.30 per share

- FY2018: low $25.38 per share, central $28.91 per share, high $33.06 per share

- FY2019: low $34.64 per share, central $44.68 per share, high $51.47 per share

- FY2020: low $30.14 per share, central $33.82 per share, high $38.70 per share

- FY2021: low $21.27 per share, central $23.50 per share, high $26.47 per share

- FY2022: low $28.49 per share, central $37.19 per share, high $42.96 per share

- FY2023: low $21.59 per share, central $24.14 per share, high $27.55 per share

- FY2024: low $24.00 per share, central $27.12 per share, high $30.90 per share

- FY2025: low $48.04 per share, central $63.76 per share, high $73.83 per share

- FY2026: low $68.58 per share, central $95.30 per share, high $110.85 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/912615/000119312526137916/urbn-20260131.htm); period 2026-01-31, filed 2026-04-01.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.