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Is Urban Outfitters' Retail Turnaround the Start of Sustained Growth?

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Key Takeaways

  • URBN retail sales rose 6.4% y/y as stores and digital posted positive comps, led by regular-price sales.
  • Anthropologie drove a 6.9% comps gain, aided by traffic, resort wear and lifestyle category expansion.
  • Urban Outfitters posted positive comps, with Europe up 14%, aided by collaborations and turnaround efforts.

Urban Outfitters Inc. (URBN - Free Report) retail segment delivered strong results in first-quarter fiscal 2026. Total net sales in the Retail segment rose 6.4% year over year, with comparable net sales in this segment increasing 4.8%. This comps growth was primarily fueled by mid-single-digit positive gains in digital channel sales and sales from retail stores.

Both stores and digital channels posted positive comps, though stores outperformed. All three major brands — Anthropologie, Free People, and Urban Outfitters — contributed to growth, supported by stronger regular-price sales, improved traffic and reduced markdowns.

Anthropologie led the segment with a 6.9% retail comps, marking its 10th consecutive quarter of growth. Strength was seen in both stores and digital, driven by increased traffic and successful lifestyle expansion. The in-house resort wear line Celandine exceeded expectations, while Daily Practice activewear and the expanded intimates and loungewear categories also performed well. Growth came from new, retained and reactivated customers.

Free People posted a 3.1% retail comps, with all major categories showing gains. FP Movement stood out with a 6% retail comps and 16% total retail growth. Store expansion supported this growth, with 43 locations added over the past year, including FP Movement stores.

Urban Outfitters returned to positive global retail comps for the first time in several quarters, rising 2.1%. While North America declined 4%, Europe rallied 14%. Improvements in assortments, lower markdowns, and collaborations with Nike and Baggu supported performance. The brand continues to execute a turnaround strategy focused on product, customer acquisition and smaller-format stores.

URBN expects mid-single-digit retail comps growth in fiscal second quarter, driven by mid-single-digit growth at Anthropologie and Free People, and low-single-digit growth at Urban Outfitters. With 64 store openings planned, the retail segment remains a core growth driver, supported by innovation, expanded assortments and strong customer engagement.

Urban Outfitters’ Price Performance, Valuation & Estimates

Shares of this Zacks Rank #1 (Strong Buy) company have rallied 44.3% in the past three months compared with the Zacks Retail-Apparel and Shoes industry’s 25.9% 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 13.6% and 19.1%, respectively, during the same period.

 

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Closing at $72.14 as of Friday, the URBN stock is trading 4.8% 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 simple moving averages (SMAs) of $68.10 and $53.58, respectively, highlighting a continued uptrend.

 

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Urban Outfitters’ forward 12-month price-to-sales ratio of 1.04X indicates a lower valuation compared with the industry’s average of 1.69X. URBN carries a Value Score of B.

 

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Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year sales and earnings per share implies year-over-year growth of 8.5% and 22.2%, respectively.

 

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Image Source: Zacks Investment Research

 

Other Stocks to Consider

Some other top-ranked stocks are Canada Goose (GOOS - Free Report) , Stitch Fix (SFIX - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) .

Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Canada Goose’s current fiscal-year 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%.

Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently carries a Zacks Rank #2 (Buy). 

The Zacks Consensus Estimate for Stitch Fix’s current fiscal-year earnings implies growth of 71.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It presently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales indicates growth of 7.6% and 11.8%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 3.4%.

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