Is Urban Outfitters Set to Extend Its Multi-Brand Momentum in FY26?

Urban Outfitters Inc. URBN reported record second-quarter fiscal 2026 results, with sales rising 11.3% year over year to $1.5 billion. All brands in the portfolio delivered positive comparable sales, with four of the five registering record fiscal second-quarter revenues. The performance reflected balanced growth across stores and digital channels, supported by disciplined execution, lower markdowns and stronger customer engagement.Free People delivered a 14% increase in revenues, led by a 6.7% retail comparable sales gain and a 19% rise in wholesale revenues. FP Movement continued to fuel momentum with 30% total growth, including 14% retail comps and a 52% wholesale rally. Strength in sports bras and bottoms, along with effective marketing campaigns, drove this performance. Free People expanded with 10 new stores in the quarter, evenly split between Free People and FP Movement, and is expected to deliver mid-single-digit retail comps growth in the fiscal third quarter.Nuuly achieved its most profitable quarter, posting a 53.2% revenue increase as active subscribers climbed 48.1% to about 370,000. Its recurring revenue model and strong retention helped deliver operating leverage, while expanded marketing efforts lifted awareness and adoption. To support growth, logistics operations in Kansas City are being expanded to 1 million square feet. Nuuly is projected to maintain double-digit revenue growth in the fiscal third quarter.Anthropologie continued its consistent momentum, with 5.7% retail comps, extending more than four years of consecutive quarterly gains. Growth was broad-based across apparel, accessories, shoes and home, while owned brands such as Celandine, Daily Practice, LyreBird and Maeve further strengthened customer appeal. Management expects a mid-single-digit comps gain in the fiscal third quarter.The Urban Outfitters brand delivered 5% revenue growth and 4.2% retail comps, including an 11% increase in Europe and improved results in North America. Proprietary labels, such as BDG denim and Out from Under lounge, grew more than 30% in the past six months, while collaborations with Nike and Chipotle helped attract customers. The brand is expected to post mid-single-digit comps growth in the second half.Company-wide, URBN anticipates high-single-digit sales growth in the fiscal third quarter and remains confident in achieving 100 basis points of gross margin expansion in fiscal 2026 despite tariff pressures. With strong brand execution, diversified growth drivers and rising consumer engagement, URBN is well-positioned to sustain momentum and deliver continued shareholder value.URBN’s Price Performance, Valuation & EstimatesShares of Urban Outfitters have gained 29% year to date against the industry’s decline of 6.6%. Image Source: Zacks Investment Research From a valuation standpoint, URBN trades at a forward price-to-earnings ratio of 13.14X, slightly down from the industry’s average of 19.11X. It has a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2026 earnings implies year-over-year growth of 26.4%, whereas the same for fiscal 2027 indicates an uptick of 8.2%. Estimates for fiscal 2026 and 2027 have been revised upward by 17 cents and 12 cents, respectively, in the past 30 days. Image Source: Zacks Investment Research URBN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Key PicksSome better-ranked stocks are Levi Strauss & Co. LEVI, Genesco Inc. GCO and The TJX Companies, Inc. TJX.Levi Strauss designs and markets jeans, casual wear and related accessories. It sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for Levi Strauss’ current financial-year earnings indicates growth of 4% from the year-ago actual. LEVI delivered a trailing four-quarter average earnings surprise of 25.9%.Genesco is a Nashville-based specialty retail and branded company that sells footwear and accessories in retail stores. It currently flaunts a Zacks Rank of 1.The Zacks Consensus Estimate for GCO’s fiscal 2026 earnings and sales implies growth of 67% and 3%, respectively, from the year-ago actuals. Genesco delivered a trailing four-quarter average earnings surprise of 28.1%.The TJX Companies is a leading off-price retailer of apparel and home fashions. It carries a Zacks Rank #2 at present.The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year earnings and sales indicates growth of 7% and 5.4%, respectively, from the year-ago actuals. TJX delivered a trailing four-quarter average earnings surprise of 5.4%.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report Levi Strauss & Co. (LEVI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks