Urban Outfitters (URBN) Reports 9% Holiday Sales Growth but Stock Drops 11%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Source: Fool
- Holiday Sales Performance: Urban Outfitters reported a 9% year-over-year increase in total sales for November and December 2025, yet its stock plummeted 11% on Monday morning, indicating market concerns about future performance.
- Same-Store Sales Data: Overall same-store sales rose 5%, with Urban Outfitters up 9% and FP Movement up 18%, but the slowdown compared to earlier growth rates during the year may have led to decreased investor confidence.
- Future Earnings Expectations: Analysts had forecasted over 9% sales growth for the January quarter, but the weak holiday sales suggest that the upcoming earnings report may miss market expectations, further exacerbating downward pressure on the stock.
- Valuation Analysis: Urban Outfitters trades at a price-to-earnings ratio of 15, with weak free cash flow pushing the price-to-free cash flow ratio to 18, and with earnings growth projected to be below 10% over the next five years, the current stock price may be overvalued, posing greater risks for investors.
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Analyst Views on URBN
Wall Street analysts forecast URBN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for URBN is 87.45 USD with a low forecast of 70.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 69.610
Low
70.00
Averages
87.45
High
98.00
Current: 69.610
Low
70.00
Averages
87.45
High
98.00
About URBN
Urban Outfitters, Inc. is a lifestyle products and services company. The Company operates through three segments: Retail, Wholesale and Nuuly. The Retail segment includes its store and digital channels and primarily includes its Anthropologie, Free People, FP Movement and Urban Outfitters brands. In addition to retail stores, it offers products and services directly to its customers through its Websites, mobile applications, social media and third-party digital platforms, catalogs and customer contact centers. The Subscription segment includes the Nuuly brand, which primarily offers customers a more sustainable way to explore fashion through a monthly women’s apparel subscription rental service. The Wholesale segment primarily designs, develops and markets young women's contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People and FP Movement brands and the BDG and iets frans apparel collections under the Urban Outfitters brand.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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