Urban Outfitters Stock Surged Wednesday: What Happened?

Vaishali Prayag

November 27, 2024

Urban Outfitters, Inc. (NASDAQ:URBN) shares traded higher on Wednesday following the release of the company’s third-quarter earnings report, which exceeded expectations. Here’s what you need to know.

What To Know: Urban Outfitters reported third-quarter earnings per share of $1.10, beating estimates of 89 cents. Revenue came in at $1.36 billion, up 6.3% year-over-year and ahead of the consensus estimate of $1.32 billion.

The company posted net income of $102.9 million for the quarter, compared to $83 million a year ago. Retail net sales rose 3.2%, with comparable retail sales up 1.5%. Anthropologie and Free People brands reported comparable sales growth of 5.8% and 5.3%, respectively, while Urban Outfitters brand sales fell 8.9%.

See More: These Analysts Increase Their Forecasts On Urban Outfitters After Q3 Results

Nuuly, the company's subscription rental service, grew sales by 48.4%, supported by a 51% increase in active subscribers. Wholesale revenue increased 17.4%, driven by a 20.3% rise in Free People wholesale sales, partially offset by declining Urban Outfitters wholesale revenue.

Gross profit for the quarter rose 9.4% to $497.3 million, with a 105-basis-point improvement in gross margin due to higher merchandise markups and fewer markdowns at Urban Outfitters. Operating expenses increased 6.7%, reflecting higher marketing and store payroll costs.

“These results were driven by outperformance across all three business segments – Retail, Subscription and Wholesale. Additionally, we’re optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results,” said Richard Hayne, CEO of Urban Outfitters.

The company ended the quarter with $182.5 million in cash, $340.4 million in marketable securities and a 10% inventory increase, largely due to early holiday merchandise shipments and higher sales expectations.

Following the print, several analysts raised price targets, which appears to have helped push shares higher on Wednesday.

Citigroup analyst Paul Lejuez upgraded Urban Outfitters from Neutral to Buy and raised the price target from $42 to $59.

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform and raised the price target from $44 to $46.

BofA Securities analyst Lorraine Hutchinson maintained a Buy and raised the price target from $46 to $53.

Barclays analyst Adrienne Yih maintained an Overweight and raised the price target from $43 to $51.

Wells Fargo analyst Ike Boruchow maintained an Equal-Weight and raised the price target from $40 to $48.

URBN Price Action: Urban Outfitters shares closed Wednesday up 18.3% at $47.49, according to Benzinga Pro.

Read Next:

Boeing Faces Heat From ‘Frustrated’ Emirates Over $52 Billion Aircraft Delays

Image Via Shutterstock.

Recommended

This $2 Stock Outshines Historic Gold Rally! - Ad

A Huge Crack Is Forming in the US Economy - Ad

Discover the $2 Stock That Has Institutional Attention - Ad

BRUNSWICK, Georgia (AP) — A car similar to one driven by a wealthy New York couple missing for more than four decades has been found in a south Georgia pond near the hotel where they were last seen, police in Georgia said.

Joe Rogan Says Harris Avoided Podcast Due To One Issue

Joe Rogan opened up about the reasons why an interview with Kamala Harris before the 2024 election never happened.

Tech Funds Are Hemorrhaging Cash: Sell This Stock Now

Tech Funds Are Hemorrhaging Cash: Sell This Stock Now - Ad

U.S. technology funds are HEMORRHAGING cash. It's the biggest selloff since the 2022 bear market. A 50-year Wall Street veteran just explained everything you need to know. For now, he's pounding the table on the No. 1 tech stock to BUY before 2024 comes to an end... And the No.1 tech stock Wall Street says to sell NOW.

Mississippi Gulf Coast restaurant and its co-owner are sentenced for mislabeling seafood

GULFPORT, Miss. (AP) — A Mississippi Gulf Coast restaurant and its co-owner it were sentenced Monday on federal charges of as local premium fish.

Trump Reportedly Urges Russian President To Deescalate War With Ukraine: Here's How Crude Oil WTI Futures Are Reacting (UPDATED)

President-elect Trump reportedly had a phone discussion with President Putin on Thursday, marking their first interaction since Trump's election win.

Wall Street Legend Issues Inauguration Buy Alert

Wall Street Legend Issues Inauguration Buy Alert - Ad

If you've underperformed this raging bull market, if you've lost money or missed out... this is your final chance to potentially profit.

Bull doge! Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

NEW YORK (AP) — Wow, much bull market.

Casino workers who want smoking ended demonstrate in New Jersey

ATLANTIC CITY, N.J. (AP) — With their push to end smoking in Atlantic City's casinos going nowhere fast in either the courts or the state Legislature, casino workers and supporters of smoke-free gambling halls demonstrated Thursday outside a hotel where New Jersey's governor was due to speak.

Goldman Sachs: 300 Million People Are At Risk

Goldman Sachs: 300 Million People Are At Risk - Ad

The mainstream media are practically ignoring the most important financial story of the decade. Goldman Sachs, the IMF, JP Morgan, Bank of America, and Morgan Stanley have issued warnings. Yet most ordinary Americans have no idea. Now one former Trump advisor is sounding the alarm. "If people knew the full facts, there'd be blood in the streets."

WHO Calls Vaccines 'Absolutely Critical' As Trump's Appointment Of RFK Jr Pulls Pzifer, Moderna Stocks Downhill

Trump's decision to appoint Kennedy, known for his vaccine skepticism, has sparked significant attention.

Working Well: The simple act of taking deep breaths can reduce stress and anxiety

NEW YORK (AP) — A simple, uncommon ritual starts each staff meeting at Myosin Marketing. When everyone is gathered , and before they get to the meat of the agenda, CEO Sean Clayton leads his team through .

Single Stock Blueprint Available Now

Single Stock Blueprint Available Now - Ad

Market Wizard Larry Benedict is one of the most successful traders you'll ever meet...But he doesn't make money the traditional way. In short: It's a way to trade just one stock...And potentially make all the money you need to fast-track your retirement -- no matter what happens in the stock market.

As US ramps up nuclear power, fuel supplier plans to enrich more uranium domestically

OAK RIDGE, Tenn. (AP) — A supplier of fuel for nuclear power plants announced a $60 million expansion in Tennessee on Wednesday, promising to resume and grow its manufacturing of high-tech centrifuges there to enrich uranium at its facility in Ohio.

The biggest remaining unsanctioned Russian bank hit with U.S. sanctions, nearly three years into war

WASHINGTON (AP) — Russia's third largest bank, Gazprombank and its six foreign subsidiaries were hit on Thursday — in a move intended to curtail Russia's ability to evade the thousands of sanctions imposed on the nation since the start of Russia's invasion of Ukraine in February 2022.

"This Will Be Worse Than the Great Depression, the Dot-Com Crash, and the 2008 Crisis Combined"

"This Will Be Worse Than the Great Depression, the Dot-Com Crash, and the 2008 Crisis Combined" - Ad

According to Dan Ferris, who has predicted nearly every major market crisis of the last 25 years, a new crisis in the US economy could soon cost you 50% of your portfolio or more if you don't prepare your wealth now. Especially if you're sitting on large gains.

Stock Of The Day: Is Pfizer Set Up To Rally?

Shares of Pfizer (PFE) may be about to reverse and head higher. They are both oversold and at a support level.

Wall Street Rebounds Without Its AI Darling's Boost, King Dollar Maintains Dominance While Bitcoin Defies Gravity: This Week In The Markets

Despite widespread anticipation that NVIDIA Corp. (NASDAQ:NVDA)'s quarterly results would dictate Wall Street's year-end trajectory, the stock market delivered a robust weekly rebound — even in the absence of its AI darling.

An Electric Aircraft Company With Potential to Break Out

An Electric Aircraft Company With Potential to Break Out - Ad

If you're watching the electric aviation sector, this is a stock to keep an eye on with a strong market position and cutting-edge technology.

Cannabis Wholesale Platform Nabis Launches In New York, Opens Two Warehouses Creating 100 Jobs

Cannabis wholesale platform Nabis has launched in the New York cannabis market. The move officially marked its status as a bicoastal operator."Expanding to New York is about more than moving into a new market — by planting our roots on the East Coast, we're laying the groundwork for our next chapter of building the national wholesaling infrastructure for brands and retailers across America," Vince C. Ning, CEO and co-founder of Nabis, said. Going forward, Nabis' wholesaling technology will provide rapid order fulfillment, payment processing, customer service and compliance to N

Dan Ives Defends $75 Palantir Target Amid AI Revolution And Revenue Surge: 'Haters Will Continue To Hate'

Dan Ives, a Wedbush analyst, has reaffirmed his $75 price target for Palantir, citing strong growth potential driven by its AI advancements and software solutions, despite skepticism from some market analysts.

Rogue Economist Comes Out of Shadows to Issue Shocking Warning

Rogue Economist Comes Out of Shadows to Issue Shocking Warning - Ad

The man who correctly predicted the 2008 Financial Crisis two years before it unfolded... Now says that by the end of 2025 the US dollar could lose its status as the world reserve currency. In his new presentation, he'll show you how you can avoid the fallout and possibly even profit from it.

Majority of Americans Approve of Trump's Second-Term Agenda

More than half of Americans expressed their support for the plans and policies of President-elect Trump as he gears up for his second term.

Friday's Top 5 Trending Stocks: What's Going On With SMCI, Nvidia, MicroStrategy?

SMCI, Nvidia, MicoStrategy, SoFi Technologies and Tesla are the top five trending tickers on Yahoo Finance Friday. Here's a look at what grabbed retail investors' attention as much of Wall Street takes the day off.

Has the Tech Stock Selloff Finally Arrived?

Has the Tech Stock Selloff Finally Arrived? - Ad

After soaring over 150% in 2024 alone... is it actually time to buy Nvidia? A 50-year Wall Street veteran gives his answer to Nvidia, right here...Including the name and ticker of one under-the-radar AI stock to buy instead of Nvidia... before Tuesday, December 3rd.

Palantir Board Member In A Deleted X Post Said Nasdaq Move Will 'Force Billions In ETF Buying And Deliver Tendies': Here's What This Meme-Stock Term Means

Palantir Technologies Inc has been making headlines after its board member, and partner at 8VC, Alex Moore deleted his X (formerly Twitter) account after saying in a tweet that its move to Nasdaq will "force billions in ETF buying."

In South Korea, nations meet in final round to address global plastic crisis

Negotiators gathered in Busan, South Korea, on Monday in a final push to create a treaty to address the global crisis of plastic pollution.

Firm Issues Rare "All In" Buy Alert on $6 Gold Stock

Firm Issues Rare "All In" Buy Alert on $6 Gold Stock - Ad

The bull market in gold is just getting started...In fact, many top analysts are predicting gold could go much, much higher. But you should NOT just rush out and buy gold bars or coins. We've found a gold play that's much better...And priced at $6 today, this stock has tremendous upside potential as the price of gold continues to rise.

Trump Administration To Reportedly Let CFTC Regulate Bitcoin, Ethereum Spot Market, Is The SEC Set To Lose Its Grip Over Crypto?

The incoming Donald Trump administration is reportedly planning to extend the regulatory power of the Commodity Futures Trading Commission to oversee a major portion of the cryptocurrency market.

Astros ballpark to be renamed Daikin Park from Minute Maid Park on Jan. 1

HOUSTON (AP) — The Houston Astros' home will get a new name on Jan. 1, becoming Daikin Park under an agreement through the 2039 season the team announced Monday.

Is NVDA a Sell? Buy This Stock Instead Before Dec 3

Is NVDA a Sell? Buy This Stock Instead Before Dec 3 - Ad

Elon Musk Agrees That People Want To See Jeffrey Epstein Files

Billionaire Elon Musk on Saturday shared a post on X which said "The people want the Diddy & Epstein Files." Later he shared his perspective by saying "Yes" on the post.

SEC Chair Gary Gensler, who led US crackdown on cryptocurrencies, to step down

Securities and Exchange Commission Chair Gary Gensler, who was aggressive in his oversight of cryptocurrencies, will step down from his post on January 20.

Wall Street Warns: Stocks Could Be "Dead Money" for Next 10 Years

Wall Street Warns: Stocks Could Be "Dead Money" for Next 10 Years - Ad

Well-connected billionaires like Warren Buffett have been selling off US stocks at an alarming rate. Today, one of America's most trusted market experts is stepping forward to explain what's really going on behind the scenes of this bull market - and why you could soon face losses of 50% or more if you do nothing.

Wall Street's Most Accurate Analysts Give Their Take On 3 Tech And Telecom Stocks With Over 4% Dividend Yields

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks.

Man pleads guilty to stealing millions from major Detroit nonprofit

DETROIT (AP) — A man from a Detroit nonprofit group pleaded guilty Friday to financial crimes that stunned the organization and forced some delays in a major riverfront project.

Crypto Stocks Are Heating Up

Crypto Stocks Are Heating Up - Ad

At the center of this transformation is a game-changing platform that's experiencing explosive growth with $41 million in revenue in just nine months. The stock has doubled in the last 45 days, but this is only the beginning.

What to know about Scott Bessent, Trump's pick for treasury secretary

WASHINGTON (AP) — has chosen money manager Scott Bessent, an advocate for deficit reduction and deregulation, to serve as his next treasury secretary.

Waymo Maybe Too Small For Alphabet Investors To Care About Today, But The Self-Driving Spinoff's Could Be Valued At $850B By 20230, Says Gene Munster

Gene Munster, Managing Partner at Deepwater Asset Management, projects that Alphabet will spin out its autonomous driving unit Waymo within the next 2-4 years, potentially reaching a valuation between $350 billion and $850 billion by 2030.

Forget Nvidia, Apple, Tesla, and Google

Forget Nvidia, Apple, Tesla, and Google - Ad

Market Wizard Larry Benedict: "Forget 99% of stocks: It's possible to make all the money you need for a happy retirement with just this one."

Students can now apply for federal college aid. Officials hope for a smoother rollout this year

WASHINGTON (AP) — The federal FAFSA form used to apply for college financial aid opened to high school seniors nationwide on Thursday, a year after a by the Biden administration delayed the application for months.

Trending Now