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Why Urban Outfitters (URBN) is Marching Ahead of Industry
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Urban Outfitters, Inc. (URBN - Free Report) has been doing well, thanks to its robust business strategies and solid fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, which is the FP Movement, and store-growth endeavors are also impressive. In addition, management remains optimistic about the prospects of Nuuly.
Such strengths have aided the shares of this Zacks Rank #1 (Strong Buy) company to rally 35.6% in the year-to-date period against the industry’s 0.7% drop.
Let’s Delve Deeper
Being a multi-brand and multi-channel retailer, Urban Outfitters offers a flexible merchandising strategy. The company also has a significant domestic and international presence with rapidly expanding e-commerce activities. It also makes rational store-expansion endeavors. In fiscal 2024, management plans to open about 28 stores and close nearly 21 outlets.
Management has been making investments in the FP Movement with digital and creative brand prospects. It believes that the FP Movement will lure a wider base of customers to the Free People brand. Having a differentiated position in the fitness and wellness space, the FP Movement offers a major growth opportunity and is expected to boost Free People’s brand revenues.
Image Source: Zacks Investment Research
Nuuly comprises the Nuuly Rent and Nuuly Thrift brands. During the second quarter of fiscal 2024, Nuuly, the subscription-based rental service for women’s clothes, contributed $55.8 million to net sales. This reflected an increase from $28.8 million recorded in the earlier fiscal year’s comparable period, backed by an 85% rise in active subscribers. Going forward, management remains optimistic about the prospects of Nuuly.
Management is pleased with the sturdy overall consumer demand at the start of the fiscal third quarter, which is likely to continue throughout the quarter. The third-quarter total company sales growth will be in the high-single digits, driven by mid-single-digit increase in Retail segment comp sales and high-double-digit growth in Nuuly.
Analysts seem optimistic about the company. For fiscal 2024, the Zacks Consensus Estimate for URBN’s sales and earnings per share (EPS) is currently pegged at $5.11 billion and $3.21, respectively, suggesting 6.6% and 83.4% growth from the year-ago period’s corresponding figures.
For fiscal 2025, the consensus estimate for sales and EPS presently stands at $5.29 billion and $3.37, respectively, indicating an increase of 3.6% and 5.1% each from the previous fiscal year’s actuals.
All in all, Urban Outfitters’ stock proves to be a solid investment bet now on the aforesaid strengths.
Eye These Other Solid Picks
We have highlighted three other top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and The Children's Place (PLCE - Free Report) .
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 10% from the year-ago reported figure. ANF delivered a trailing four-quarter earnings surprise of 724.8%, on average.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an average earnings surprise of 43.2% in the trailing four quarters.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year EPS suggests growth of 33% from the year-ago reported figure.
The Children's Place, the children’s specialty apparel retailer, currently carries a Zacks Rank #2 (Buy). The company has a negative trailing four-quarter earnings surprise of 5%, on average.
The consensus estimate for The Children's Place’s current financial-year EPS suggests growth of 1,300% from the year-ago reported figure.
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Why Urban Outfitters (URBN) is Marching Ahead of Industry
Urban Outfitters, Inc. (URBN - Free Report) has been doing well, thanks to its robust business strategies and solid fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, which is the FP Movement, and store-growth endeavors are also impressive. In addition, management remains optimistic about the prospects of Nuuly.
Such strengths have aided the shares of this Zacks Rank #1 (Strong Buy) company to rally 35.6% in the year-to-date period against the industry’s 0.7% drop.
Let’s Delve Deeper
Being a multi-brand and multi-channel retailer, Urban Outfitters offers a flexible merchandising strategy. The company also has a significant domestic and international presence with rapidly expanding e-commerce activities. It also makes rational store-expansion endeavors. In fiscal 2024, management plans to open about 28 stores and close nearly 21 outlets.
Management has been making investments in the FP Movement with digital and creative brand prospects. It believes that the FP Movement will lure a wider base of customers to the Free People brand. Having a differentiated position in the fitness and wellness space, the FP Movement offers a major growth opportunity and is expected to boost Free People’s brand revenues.
Image Source: Zacks Investment Research
Nuuly comprises the Nuuly Rent and Nuuly Thrift brands. During the second quarter of fiscal 2024, Nuuly, the subscription-based rental service for women’s clothes, contributed $55.8 million to net sales. This reflected an increase from $28.8 million recorded in the earlier fiscal year’s comparable period, backed by an 85% rise in active subscribers. Going forward, management remains optimistic about the prospects of Nuuly.
Management is pleased with the sturdy overall consumer demand at the start of the fiscal third quarter, which is likely to continue throughout the quarter. The third-quarter total company sales growth will be in the high-single digits, driven by mid-single-digit increase in Retail segment comp sales and high-double-digit growth in Nuuly.
Analysts seem optimistic about the company. For fiscal 2024, the Zacks Consensus Estimate for URBN’s sales and earnings per share (EPS) is currently pegged at $5.11 billion and $3.21, respectively, suggesting 6.6% and 83.4% growth from the year-ago period’s corresponding figures.
For fiscal 2025, the consensus estimate for sales and EPS presently stands at $5.29 billion and $3.37, respectively, indicating an increase of 3.6% and 5.1% each from the previous fiscal year’s actuals.
All in all, Urban Outfitters’ stock proves to be a solid investment bet now on the aforesaid strengths.
Eye These Other Solid Picks
We have highlighted three other top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , American Eagle Outfitters (AEO - Free Report) and The Children's Place (PLCE - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 10% from the year-ago reported figure. ANF delivered a trailing four-quarter earnings surprise of 724.8%, on average.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently sports a Zacks Rank of 1. AEO delivered an average earnings surprise of 43.2% in the trailing four quarters.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year EPS suggests growth of 33% from the year-ago reported figure.
The Children's Place, the children’s specialty apparel retailer, currently carries a Zacks Rank #2 (Buy). The company has a negative trailing four-quarter earnings surprise of 5%, on average.
The consensus estimate for The Children's Place’s current financial-year EPS suggests growth of 1,300% from the year-ago reported figure.