City Outfitters, Inc. URBN is coming off a report yr for gross sales and income in FY 2025. This Zacks Rank #1 (Sturdy Purchase) can also be a uncommon inventory that has the “A” Zacks Type Scores throughout the board for Worth, Development and Momentum. “A” is the highest Type Rating.
City Outfitters is a worldwide lifestyle-oriented retailer with quite a few manufacturers together with Anthropologie, Free Folks, FP Motion, City Outfitters and Nuuly. It additionally operates 9 Menus & Venues eating places.
Free Folks, FP Motion and City Outfitters additionally sells their merchandise wholesale via division and specialty shops worldwide. Nuuly is primarily a girls’s attire subscription rental service which gives merchandise from the Firm’s personal manufacturers, but in addition third-party manufacturers and one-of-a-kind classic items.
As of Jan 31, 2025, it operated 255 City Outfitters shops, 239 Anthropologie shops, and 230 Free Folks shops, together with 63 FP Motion shops. Along with brick and mortar, it additionally operates catalogs and web sites for every of these three manufacturers.
City Outfitters Beats Large on Earnings in Fiscal This fall 2025
On Feb 26, 2025, City Outfitters reported its fiscal fourth quarter 2025 outcomes, which was the all-important vacation quarter, and it beat on the Zacks Consensus for the fourth quarter in a row.
Earnings have been $1.04, or $0.15 increased than the Zacks Consensus Estimate of $0.89.
Web gross sales for the fourth quarter rose 10.1% to a report $1.64 billion.
The corporate has three segments: Retail, Wholesale, and Subscription. In Retail, web gross sales rose 6.3% with comparable Retail web gross sales leaping 5.1%. Digital channel gross sales noticed excessive single-digit development whereas the shops themselves noticed low single-digit development.
Comparable Retail gross sales, which is the important thing metric in retail, have been up 8.3% at Anthropologie and eight.0% at Free Folks however fell 3.5% at City Outfitters.
Subscription web gross sales rose by 55.6% in comparison with the earlier yr. It was pushed by a 53.5% improve in common energetic subscribers within the present quarter versus a yr in the past.
Wholesale additionally jumped, rising 26.2%. It was pushed by a 27% improve in Free Folks wholesale gross sales resulting from a rise in gross sales to specialty clients and malls.
For the complete yr, the corporate additionally noticed report gross sales, up 7.7% to $5.55 billion.
Stock has been a sore spot for a lot of retailers because the begin of the pandemic. They both had too little, or an excessive amount of.
City Outfitters stock, as of Jan 31, 2025, rose 12.9%, or $70.9 million, in comparison with the yr in the past interval. Retail section comparable stock rose 11.3% whereas Wholesale stock soared 43.7%.
However the improve in stock for each segments was deliberate. It was executed to assist elevated gross sales and deliberate early receipts.
Analysts Bullish on City Outfitters in Fiscal 2026 and Past
What slowdown by the buyer? The analysts simply don’t see it with City Outfitters and its robust manufacturers.
For Fiscal 2026, 4 estimates have been revised increased over the past 30 days which pushed the Zacks Consensus as much as $4.54 from $4.34. That’s earnings development of 11.8% as the corporate solely made $4.06 final yr.
Wanting ahead, analysts are much more bullish on Fiscal 2027. 1 estimate was raised within the final 30 days. The Fiscal 2027 Zacks Consensus Estimate is on the lookout for $4.95, which might be additional earnings development of 8.9%.
Here’s what it seems to be like on the 5-year value and consensus chart.
Picture Supply: Zacks Funding Analysis
URBN Shares Pull Again: Is This a Shopping for Alternative?
Few shares have escaped the March 2025 inventory market pullback, together with City Outfitters.
Yr-to-date, the inventory is now down 13.9%.
Picture Supply: Zacks Funding Analysis
It’s low-cost. It has a ahead price-to-earnings (P/E) ratio of 10.9. A P/E ratio below 15 often signifies an organization is undervalued.
City Outfitters additionally has a gorgeous price-to-sales (P/S) ratio of 0.8. A P/S ratio below 1.0 often signifies a inventory has each development and worth. That’s a uncommon mixture. Often you get development, or worth, however not each.
For traders on the lookout for a retailer that checks all of the packing containers, together with having the best Zacks Rank and the highest Type Scores, then City Outfitters needs to be in your brief checklist.
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
