Innovation and brisk holiday sales have shares of Urban Outfitters, Inc. (URBN) rising.
Urban Outfitters sells clothing through three primary channels: retail, wholesale, and subscription. It operates through many brands, including Urban Outfitters, Anthropologie, BHLDN, Free People, Terrain, and Nuuly. The company was among a handful identified by analysts as having had good holiday sales seasons. URBN’s focus on customer acquisition, operational efficiency, and digital innovation has driven significant growth.
URBN’s third-quarter earnings for fiscal 2025 saw a 6% sales increase, to $1.4 billion, despite challenging times for many clothing retailers. The Nuuly brand in particular saw sizeable growth, with 48% more revenue (to $97 million) and a 51% jump in active subscribers (to nearly 300,000). URBN’s per-share diluted earnings were $1.10. The company plans to open new stores in the future as well.
It’s no wonder URBN shares are up nearly 65% in a year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. In the last year, URBN has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in URBN shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with Urban Outfitters.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, URBN has had strong sales and earnings growth:
Source: FactSet
Also, EPS is estimated to ramp higher this year by +8%.
Now it makes sense why the stock has been powering to new heights. URBN has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Urban Outfitters has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when URBN was a top pick…rising higher along the way:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The URBN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in URBN at the time of publication.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.