Can Urban Outfitters Maintain Its Winning Streak Across All Channels?

Urban Outfitters Inc. URBN began fiscal 2026 with strong results across retail and wholesale. Retail comparable sales rose 4.8% year over year, with mid-single-digit positive gains in digital channel sales and sales from retail stores. Anthropologie, Free People and Urban Outfitters all delivered positive comps, supported by higher regular price sales, improved traffic and lower markdowns.

Anthropologie posted a 6.9% retail comp, its 10th straight quarter of growth, with strength in stores and digital. The Celandine resort wear line exceeded expectations, while Daily Practice activewear, intimates and loungewear also performed well. Free People recorded a 3.1% retail comp, driven by broad category gains. FP Movement delivered a 6% retail comp and 16% total retail growth. 

Store expansion, including 29 FP Movement and 14 Free People locations, fueled results. Urban Outfitters achieved its first positive global retail comp in several quarters at 2.1%, with Europe up 14%, offsetting a 4% decline in North America.

Wholesale revenues rose 24.2%, led by Free People’s 25.6% growth and FP Movement’s 78% surge. Gains came from strong full-price sales in specialty and department stores and the introduction of new labels into fresh accounts. Profitability improved significantly as URBN focused on aligned partnerships and brand integrity.

For the fiscal second quarter, URBN expects mid-single digit retail comps at Anthropologie and Free People, low single digit growth for Urban Outfitters and low double digit wholesale gains. With 64 store openings planned in fiscal 2026 and continued focus on innovation, expanded assortments and strategic wholesale growth, URBN aims to sustain its momentum across both segments.

How SHOO & DECK Stack Up Against URBN

Steven Madden, Ltd. SHOO and Deckers Outdoor Corporation DECK are the key footwear companies competing with Urban Outfitters.

Steven Madden’s second-quarter 2025 wholesale revenues were $360.6 million, down 6.4% year over year, or 12.8% excluding Kurt Geiger. Wholesale footwear fell 7.1% excluding Kurt Geiger, and accessories and apparel dropped 5.3% excluding the acquisition. Steven Madden’s direct-to-consumer sales rose 43.3% to $195.5 million but declined 3% excluding Kurt Geiger. Tariffs pressured margins, with wholesale at 30.9% and direct-to-consumer at 61.3%.

Deckers’ first-quarter 2026 wholesale net sales rose 26.7% year over year to $652.4 million, led by HOKA’s 30% global wholesale growth and strong reorders across EMEA, China and the United States. UGG’s wholesale also performed well, driven by sandals and sneakers. Deckers’ DTC net sales grew 0.5% to $312.2 million, with HOKA’s global DTC up 3%. Retail expansion in cities like Berlin and Milan continues.

URBN’s Price Performance, Valuation & Estimates

Shares of Urban Outfitters have gained 42.5% year to date against the industry’s decline of 12.9%.

From a valuation standpoint, URBN trades at a forward price-to-earnings ratio of 15.02X, below the industry’s average of 17.56X. It has a Value Score of B.

The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2026 earnings implies year-over-year growth of 21.9% and the same for fiscal 2027 indicates an uptick of 9.9%. The estimates for fiscal 2026 and 2027 have been southbound by 1 cent and upbound by 1 cent, respectively, in the past seven days.

URBN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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