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Urban Outfitters' (URBN) Alliance With Hims & Hers Augurs Well

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Urban Outfitters, Inc. (URBN - Free Report) remains committed to make investments in direct-to-consumer business, enhance productivity in existing channels, expand product assortment and optimize inventory level. In latest developments, the company teamed up with Hims & Hers Health, Inc. (HIMS - Free Report) , which operates as a multi-specialty telehealth platform. The latter offers modern health and wellness solutions to consumers, and therefore this collaboration will allow the former to provide personalized wellness offerings with initial availability of select Hims products on urbanoutfitters.com.

Through the latest agreement, both parties look to bolster Hims solutions and introduce select Hers items on urbanoutfitters.com in the future months. This planned offering will include skin care, hair loss, sexual health and wellness, and more personal care items. Markedly, Urban Outfitters will foray into men’s makeup territory with Hims’ recently introduced Blur Stick Concealer for Men.

Encouragingly, the aforesaid partnership bodes well for the company’s digitally native customers who are seeking personalized health and wellness products. Customers can avail of beautifully designed, top-quality and affordable products within the health and wellness realm.

What Else?

Urban Outfitters seems quite promising, thanks to robust business strategies and digital strength. Being a multi-brand and multi-channel retailer, the company offers a flexible merchandising strategy. Notably, it is steadily witnessing sturdy consumer demand across majority of its product categories, which has been boosting the comparable store sales (comps) for a while now. Also, its growth initiative FP Movement augurs well. Management is investing consistently in the movement with digital and creative brand prospects along with the FP Movement ambassador program.

Notably, the FP Movement initiative appears encouraging with strength in activewear. Management believes that the FP Movement will lure a wider base of customers to the Free People brand. Precisely, the company intends to add about 16 Free People Movement stores in fiscal 2022.

Zacks Investment ResearchImage Source: Zacks Investment Research

Such upsides helped this lifestyle-specialty retail company deliver a sturdy first-quarter fiscal 2022 performance wherein both the top and the bottom line outshone the Zacks Consensus Estimate and also improved year over year. We note that sales across all the brands and segments of the company grew year over year in the quarter. Impressively, shares of this currently Zacks Rank #1 (Strong Buy) company have soared 67.9%, outperforming the industry’s 33.5% rally in the past six months.

2 Better-Ranked Retail Stocks

Abercrombie & Fitch (ANF - Free Report) has a long-term earnings growth rate of 18%. It presently sports a Zacks Rank of 1. You can see tthe complete list of today’s Zacks #1 Rank stocks here.

Boot Barn (BOOT - Free Report) has a trailing four-quarter earnings surprise of 51.7%, on average, and is presently Zacks #1 Ranked.

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