Since May 2025, Urban Outfitters has been in a holding pattern, posting a small loss of 0.6% while floating around $61.05. The stock also fell short of the S&P 500’s 13% gain during that period.

Does this present a buying opportunity for URBN? Or is its underperformance reflective of its story and business quality? Find out in our full research report, it’s free for active Edge members.

Why Does Urban Outfitters Spark Debate?

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Two Positive Attributes:

1. New Stores Popping Up Gradually, Supports Growth

A retailer’s store count often determines how much revenue it can generate.

Urban Outfitters sported 756 locations in the latest quarter. Over the last two years, it has opened new stores quickly, averaging 2.7% annual growth. This was faster than the broader consumer retail sector.

When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.

2. Surging Same-Store Sales Show Increasing Demand

Same-store sales is a key performance indicator used to measure organic growth at brick-and-mortar shops for at least a year.

Urban Outfitters’s demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 4.3% per year.

One Reason to be Careful:

Long-Term Revenue Growth Disappoints

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last six years, Urban Outfitters grew its sales at a tepid 6.8% compounded annual growth rate. This wasn’t a great result compared to the rest of the consumer retail sector, but there are still things to like about Urban Outfitters.

Final Judgment

Urban Outfitters has huge potential even though it has some open questions. With its shares trailing the market in recent months, the stock trades at 11.6× forward P/E (or $61.05 per share). Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

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