URBN

Urban Outfitters (URBN) drew fresh attention after reporting its eighth straight quarter of record sales and profits, while revenue topped forecasts and new analyst coverage coincided with the stock hitting a 52-week high. Recent trading has reflected that enthusiasm. Urban Outfitters shares have climbed, with a 30 day share price return of 7.98% and a 90 day gain of 16.31%, contributing to a 24.93% total shareholder return over the past year and a 177.65% total shareholder return over five years. This points to momentum building around the stock rather than fading. Compare Urban Outfitters' momentum with a curated set of retailers and consumer stocks in the 20 high quality undiscovered gems that investors may be overlooking. After this run, Urban Outfitters now trades only a few dollars below the average analyst target, while an intrinsic value estimate points higher. Is the share price already fair or still playing catch up? Urban Outfitters closed at $84.85, while the most followed narrative pegs fair value at $89.43, which frames the recent rally as still short of that estimate. The broader shift of Urban Outfitters, Inc. into a five brand portfolio with different banners, channels and customer demographics can create more stable company level revenue and margin performance as strengths in Nuuly, FP Group or Urban Outfitters offset periods of softer trends in Anthropologie or specific categories. See why 15 investors see Urban Outfitters as 5% undervalued. Result: Fair Value of $89.43 (UNDERVALUED) Still, the Urban Outfitters narrative can be knocked off course if Anthropologie's weaker profitability lingers or if planned US$475 million capex fails to deliver enough sales to cover higher costs. Find out about the key risks to this Urban Outfitters narrative. There is a catch. While the popular narrative tags Urban Outfitters as about 5% undervalued on a fair value of $89.43, the SWS DCF model points the other way. On that framework, URBN at $84.85 sits above an estimated future cash flow value of $78.49. This frames the stock as expensive on cash flows and raises the question of which signal you trust more: earnings power or cash generation. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Urban Outfitters for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 32 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Sentiment on Urban Outfitters is split, with optimism around recent results offset by concerns around execution, so consider reviewing the data promptly and stress testing it for yourself. To see both sides of that debate in one place, review the 2 key rewards and 2 important warning signs. If Urban Outfitters has your attention, broaden your watchlist with a few targeted idea lists that surface different kinds of opportunities across the market. - Target potential mispricing by scanning for companies that combine quality fundamentals with discounted valuations using the 32 high quality undervalued stocks. - Build income resilience by focusing on businesses offering robust payouts through the 8 dividend fortresses. - Prioritise capital protection by filtering for companies with resilient profiles through the 32 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include URBN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for American Eagle Outfitters (AEO). Shares have added about 23.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is American Eagle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. American Eagle posted fiscal second-quarter 2026 earnings of 79 cents per share, up 75.6% year over year and above the Zacks Consensus Estimate of 21 cents. Net revenue rose 7.5% to $1.38 billion and beat the consensus mark of $1.37 billion. The earnings beat was aided by tariff-refund benefits, while Aerie and OFFLINE momentum supported sales growth. Consolidated comparable sales increased 6%, and American Eagle showed sequential improvement from the first quarter. Aerie revenue increased 24.9% year over year to $535.8 million, while comparable sales advanced 19%. Management cited broad-based strength across channels and categories, including core apparel, intimates and activewear. OFFLINE also benefited from demand for Cloud Fleece, sports bras and bottoms. American Eagle brand revenue rose 0.7% to $805.9 million, but comparable sales declined 1%. Men's delivered its fourth consecutive quarter of positive comps. Women's fashion bottoms and newer denim fits gained traction, though the company is still rebalancing older and seasonal inventory. American Eagle's Margins Get Refund Boost Gross profit climbed 34.4% year over year to $672.1 million, while gross margin expanded 980 basis points to 48.7%. A net $179 million tariff-refund benefit in gross profit contributed 1,300 basis points to the margin expansion. Merchandise margins deleveraged 330 basis points, with Aerie improvement offset by American Eagle markdowns. Selling, general and administrative expenses increased 19.3% to $408.4 million and rose 290 basis points as a percentage of sales to 29.6%. Operating income rose 105.1% year over year to $211.4 million, while operating margin increased 730 basis points to 15.3%. The quarter included a $161 million net operating-income benefit from tariff refunds. AEO ended the quarter with $148 million in cash and cash equivalents. Total liquidity, including the revolver, was $783 million. Merchandise inventory was $817.9 million, up 13.9% year over year, while units increased 9%. Management said the higher inventory cost included the impact of incremental tariffs. The company also returned $21 million to shareholders through its quarterly cash dividend of 12.5 cents per share. For fiscal 2026, the company expects comparable sales to increase in the mid-single digits and gross margin to rise year over year. SG&A expenses are projected to grow in the low-double digits, while depreciation and amortization is expected at about $215 million. Operating income is forecast between $540 million and $550 million, inclusive of tariff-refund benefits. For the fiscal third quarter, AEO expects comparable sales growth in the mid-to-high single digits. Management sees Aerie and OFFLINE comps in the high teens to 20% range, while American Eagle is expected to be approximately flat. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -12.5% due to these changes. Currently, American Eagle has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, American Eagle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. American Eagle is part of the Zacks Retail - Apparel and Shoes industry. Over the past month, Urban Outfitters (URBN), a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended July 2026 more than a month ago. Urban Outfitters reported revenues of $1.66 billion in the last reported quarter, representing a year-over-year change of +10.4%. EPS of $1.72 for the same period compares with $1.58 a year ago. For the current quarter, Urban Outfitters is expected to post earnings of $1.54 per share, indicating a change of +20.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Urban Outfitters. Also, the stock has a VGM Score of A. 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 American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Levi Strauss & Co. LEVI reported mixed third-quarter fiscal 2026 results, with earnings surpassing the Zacks Consensus Estimate but revenues falling short. The denim apparel maker benefited from tariff refunds, international expansion, wholesale strength and improved profitability. The company also raised its fiscal 2026 profit outlook. However, softer direct-to-consumer (DTC) traffic in the United States and Europe weighed on performance. Adjusted earnings of 48 cents per share topped the Zacks Consensus Estimate of 36 cents and increased 41.2% year over year. Revenues rose 4.3% to $1,610 million but missed the consensus estimate of $1,615 million. Organic revenues grew 5%, while DTC comparable sales increased just 0.4%. Levi Strauss & Co. price-consensus-eps-surprise-chart | Levi Strauss & Co. Quote Levi Strauss' DTC revenues increased 2% on both reported and organic bases, reflecting softer traffic across the United States and Europe. The channel contributed 45% of total revenues during the quarter. E-commerce revenues advanced 10%, reflecting continued digital momentum. U.S. DTC revenues declined 1%, while Europe's fell 2% on a reported basis. Management attributed the weakness to an underperforming back-to-school campaign in the United States and unusually warm weather across European markets. Meanwhile, global wholesale revenues increased 6%, supported by broad-based demand across regions and product categories. The Americas generated $839 million of revenues, up 4% on a reported basis and 2% organically. U.S. revenues declined 1%, while Latin America delivered 10% organic growth, supported by strength across channels and markets. Europe reported revenues of $442 million, up 4% on a reported basis and 5% organically. Double-digit wholesale growth supported regional performance despite weaker DTC traffic. Asia generated $293 million, increasing 5% on a reported basis and 10% organically. Momentum across Japan, India, Australia and China supported the region's growth. The Levi's brand registered 4% organic growth, supported by mid-single-digit gains across men's and women's businesses. Categories beyond denim bottoms contributed approximately half of quarterly organic revenue growth, highlighting the company's expanding lifestyle portfolio. Tops revenues increased 7%, with women's tops advancing 10%. The premium Blue Tab collection delivered strong double-digit growth, while Levi Strauss Signature grew 13%, aided by core denim and expanding lifestyle offerings. Beyond Yoga revenues increased 9% to $36 million, supported by growth across both distribution channels. Gross profit increased to $1.07 billion from $951.6 million in the year-ago quarter. Gross margin expanded 450 basis points to 66.2%, including a 370-basis-point net benefit from tariff refunds. Excluding this benefit, underlying gross margin expanded 80 basis points, supported by lower product costs and partly offset by foreign exchange pressures. Selling, general and administrative (S&G) expenses increased to $835.9 million from $775.6 million. Adjusted SG&A rose 6.2% to $817 million, primarily reflecting higher selling and distribution expenses. Adjusted EBIT increased 36% to $249 million, while adjusted EBIT margin expanded 370 basis points to 15.5%, including a 330-basis-point net tariff refund benefit. Notably, tariff refunds contributed 11 cents to adjusted earnings after reinvestment. Excluding this benefit, adjusted earnings increased approximately 9% year over year, supported by underlying margin expansion and share repurchases. Levi Strauss ended the quarter with cash and cash equivalents of $641 million and total liquidity of approximately $1.5 billion. Inventories declined 3% year over year, reflecting continued inventory management discipline. The company returned $61.6 million to shareholders through dividends, representing an 11% year-over-year increase. It also announced plans for an additional $100 million accelerated share repurchase program. The company declared a quarterly dividend of 16 cents per share, reflecting a 14% increase from the year-ago level. Management raised its fiscal 2026 adjusted earnings guidance to $1.54-$1.56 per share from $1.46-$1.52. The revised outlook includes an approximately 4-cent net tariff refund benefit. Adjusted EBIT margin is expected to reach about 12.1% compared with the previous 12% outlook. Gross margin is projected to expand 130 basis points year over year. Reported revenue growth is expected at approximately 7% compared with the earlier 7-7.5% range, reflecting foreign exchange headwinds. Organic revenue growth is projected at approximately 6%, the upper end of the previous guidance. For the fourth quarter, management anticipates reported and organic revenue growth of approximately 3% and 4%, respectively. Adjusted EBIT margin is expected to be between 11.4% and 11.6%, with adjusted earnings projected at 36-38 cents per share. Management expects DTC growth to recover to mid-single digits, supported by targeted marketing, stronger product assortments and improving traffic trends. LEVI Stock Past Three-Month Performance Image Source: Zacks Investment Research Shares of this Zacks Rank #3 (Hold) company have lost 18.2% over the past three months as compared with the industry's 6.2% decline. Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Genesco's current fiscal-year earnings indicates 62.1% growth from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 11.2%. Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Designer Brands' current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%. Urban Outfitters, Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company also holds a Zacks Rank of 2 at present. The Zacks Consensus Estimate for Urban Outfitters' current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%. 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 Levi Strauss & Co. (LEVI) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Urban Outfitters (URBN). Shares have lost about 5.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Urban Outfitters due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Urban Outfitters, Inc. before we dive into how investors and analysts have reacted as of late. Urban Outfitters reported strong second-quarter fiscal 2027 results, with earnings matching the Zacks Consensus Estimate, while revenues surpassed the consensus mark. Also, both metrics improved from the prior-year quarter's reported figures. The company delivered record second-quarter sales and profits, marking its eighth consecutive quarter of record performance. This lifestyle specialty retailer delivered adjusted earnings per share of $1.72, in line with the Zacks Consensus Estimate. Adjusted earnings increased 8.9% year over year. The company's earnings per share were $2.78 compared with $1.58 in the prior-year quarter. Net sales increased 10.4% year over year to $1,661.9 million, beating the consensus mark of $1,648 million. The sales performance benefited from strength across Retail, Wholesale and Subscription operations. Total Retail segment net sales rose 8% year over year to $1.39 billion, while comparable Retail segment sales increased 6.2%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. Comparable Retail segment sales increased 10% at FP Group, 8.4% at Urban Outfitters and 3% at Anthropologie.  Within the FP Group, total sales increased 15% year over year to $478.1 million, driven by continued momentum across both Retail and Wholesale operations. Free People and FP Movement continued to benefit from strong customer demand, while the FP Group Wholesale segment delivered a 19% increase in revenues. Urban Outfitters posted an 8% comparable-sales increase, supported by strength across North America and Europe. The Wholesale segment posted net sales growth of 18.6%, driven by a 19.2% increase in FP Group wholesale sales due to higher sales to specialty customers and department stores. Nuuly, the company's women's apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 28.6% year over year to $178.6 million, primarily driven by a 30.4% increase in average active subscribers. Average active subscribers reached 484,000 during the quarter, while the subscriber base crossed 500,000 in early June. Gross profit rose 27.4% year over year to $721.6 million in the fiscal second quarter. However, the reported gross margin increased 580 basis points year over year to 43.4%, benefited from a $95.7-million IEEPA tariff refund.  Adjusted gross margin increased 4 basis points to 37.7%. The improvement was primarily driven by benefits from store occupancy costs from higher comparable Retail store sales and leverage in delivery expenses from initiatives that helped offset fuel-surcharge costs. These benefits were partly offset by higher Retail markdowns at Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs. Selling, general and administrative (SG&A) expenses increased 10.5% year over year to approximately $433 million. The increase was primarily driven by higher marketing investments to support customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses. These increases were partly offset by leverage in store payroll expenses resulting from higher Retail store sales. The company continued to invest in artificial intelligence technology to support its current and future operations. As a percentage of net sales, SG&A expenses remained flat at 26%. URBN reported adjusted operating income of $193.1 million, up 11% from $174.4 million in the prior-year quarter. The adjusted operating margin improved 3 basis points year over year to 11.6%, reflecting the increase in adjusted gross margin. In the first six months of fiscal 2027, the company opened 23 stores and closed six stores. Store openings included four Anthropologie, seven Free People, 10 FP Movement and two Urban Outfitters stores, while closures included one Anthropologie, one FP Movement, three Urban Outfitters and one Menus & Venues location. As of July 31, 2026, URBN operated 252 Urban Outfitters stores, 257 Anthropologie stores and 284 FP Group stores, including 97 FP Movement locations. The company operated eight Menus & Venues restaurants and nine franchisee-owned stores. As of July 31, 2026, Urban Outfitters had cash and cash equivalents of $598.8 million, up from $332.2 million in the prior-year period. Marketable securities totaled $346.8 million, while total shareholders' equity stood at $2.85 billion at the quarter-end. As of July 31, 2026, total inventory increased 11.8% year over year to $778.5 million. Total Retail segment inventory rose 12%, while comparable Retail segment inventory increased 8.4%. Wholesale segment inventory increased 10%. The increase in Retail inventory was primarily due to higher net sales and the timing of inventory receipts, while the increase in Wholesale inventory reflected higher sales. During the first six months of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of July 31, 2026, 10 million common shares remained authorized for repurchase under the existing program. Urban Outfitters' management expects third-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses. The Retail segment's comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit growth at FP Group, mid-single-digit growth at Urban Outfitters and low-to-mid-single-digit growth at Anthropologie. Nuuly is expected to post high-twenties revenue growth, while the Wholesale segment is projected to generate low-teens growth. For the fiscal third quarter, URBN expects the gross profit margin to increase 25-50 basis points year over year. The anticipated improvement primarily reflects higher initial merchandise margins due to lower tariffs and leverage in occupancy costs, partly offset by higher fuel surcharges. Management anticipates fuel surcharges to continue affecting the business through the remainder of fiscal 2027. The company noted that these surcharges are expected to create an unfavorable impact through higher inbound freight and delivery expenses. Management expects third-quarter SG&A expenses to grow slightly below sales growth, reflecting continued investments in marketing, technology and AI initiatives while benefiting from leverage in store payroll and occupancy expenses. For fiscal 2027, management maintains its expectation for positive high-single-digit total company sales growth. The outlook reflects continued momentum across the portfolio, with Retail comparable sales expected to grow in the mid-single-digit range, Nuuly revenues projected to increase in the high-20% range and Wholesale revenues anticipated to grow in the low-teens range. URBN expects fiscal 2027 gross margin to expand by approximately 25 basis points year over year. Management sees an incremental margin opportunity in the second half, primarily from improved initial merchandise margins as tariff pressures moderate. However, fuel surcharges are expected to remain a headwind through the remainder of the fiscal year. For the full year, SG&A is expected to grow in line with sales, while inventory growth is expected to remain at or below sales growth as the company continues to focus on improving product turns. Management also plans to continue investing in marketing, technology and AI initiatives to support customer acquisition and long-term growth. Capital expenditures for fiscal 2027 are planned at approximately $475 million. Approximately 35% of spending is expected to be allocated to retail store expansion and support, 50% to logistics investments and the remaining 15% to technology investments and home-office expansion. The logistics investments are intended to expand capacity and automation across the Subscription and Retail businesses. URBN expects to open approximately 54 new stores and close approximately 18 stores during fiscal 2027. Net new store growth is expected to be primarily driven by FP Movement. The company plans to open 21 FP Movement, 12 Free People, 12 Anthropologie and eight Urban Outfitters stores during the year. Management expressed confidence as it enters the second half, citing double-digit sales and profit growth at Free People and FP Movement, positive comparable sales at Anthropologie and high-single-digit comparable sales at Urban Outfitters in both North America and Europe. Management also emphasized URBN's multi-brand strategy and structural diversification across brands, demographics, product categories, distribution channels and geographies. In the past month, investors have witnessed a upward trend in estimates revision. Currently, Urban Outfitters has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Urban Outfitters has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Urban Outfitters is part of the Zacks Retail - Apparel and Shoes industry. Over the past month, Fossil Group (FOSL), a stock from the same industry, has gained 8.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Fossil Group reported revenues of $209.7 million in the last reported quarter, representing a year-over-year change of -4.9%. EPS of -$0.13 for the same period compares with -$0.10 a year ago. Fossil Group is expected to post earnings of $0.03 per share for the current quarter, representing a year-over-year change of +104.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Fossil Group has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F. 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 Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings growth is vital for any organization, regardless of size, because sustained profitability is key to long-term survival. To calculate earnings, examine a company’s revenues over a period and subtract production costs. Earnings strongly influence share prices, with expectations playing a major role. On that note, ITT Inc. ITT, Signet Jewelers Limited SIG and Urban Outfitters, Inc. URBN are delivering impressive earnings growth and have strong upside potential. We have frequently seen stock prices decline despite earnings growth, or rally after an earnings decline. This largely results from a company’s earnings failing to meet market expectations. Earnings estimates reflect analysts’ views on factors such as sales growth, product demand, the competitive industry environment, profit margins and cost control. Consequently, earnings estimates are a valuable tool for making investment decisions. They also help analysts evaluate cash flow to determine a firm's fair value. Thus, investors should look for stocks poised for a big move. Investors should buy stocks with a history of earnings growth that are seeing a rise in quarterly and annual earnings estimates. To shortlist stocks that have striking earnings growth and positive estimate revisions, we have added the following parameters: Zacks Rank less than or equal to 2 (Only Zacks' 'Buys' and 'Strong Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.) 5-Year Historical EPS Growth (%) greater than X-Industry (stocks with a strong EPS growth history). % Change EPS F(0)/F(-1) greater than or equal to 5 (companies that saw year-over-year earnings growth of 5% or more in the last reported fiscal) % Change Q1 Estimates over the last 4 weeks greater than zero (stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks). % Change F1 Estimates over the last 1 week greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 1 week). % Change F1 Estimates over the last 4 weeks greater than zero (stocks that have seen their annual earnings estimates revised higher in the last 4 weeks). The above criteria narrowed the universe of around 7,839 stocks to only nine. Here are the top three stocks: ITT manufactures engineered components and customized technology solutions for transportation, industrial and energy markets. The company’s expected earnings growth rate for the current year is 22.8%. ITT currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Signet Jewelers operates diamond jewelry stores across the United States, Canada, the United Kingdom and Ireland. The company’s expected earnings growth rate for the current year is 21.9%. SIG currently has a Zacks Rank #1. Urban Outfitters offers lifestyle products and services in the United States and international markets. The company’s expected earnings growth rate for the current year is 13.2%. URBN currently has a Zacks Rank #2. 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 ITT Inc. (ITT) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Signet Jewelers Limited (SIG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In August 2026, Urban Outfitters, Inc. reported second-quarter sales of US$1,661.92 million and net income of US$240.65 million, alongside stronger earnings per share and completion of a multi-year US$524.44 million share repurchase program covering 9,990,599 shares. At the same time, the company highlighted continued investment in logistics and automation for its Nuuly subscription and retail operations, underscoring how infrastructure spending is becoming a central pillar of its growth and efficiency plans. Next, we'll examine how Urban Outfitters' stronger earnings and Nuuly-focused logistics investment may reshape the existing investment narrative for the company. AI is about to change healthcare. These 37 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Urban Outfitters today, you need to believe it can keep turning a multi-brand, youth-focused portfolio and Nuuly into consistent, high quality earnings while managing fashion risk, tariffs, and store costs. The latest quarter’s stronger profits and higher EPS support the near term earnings story, but they do not remove the key risk that heavier spending on marketing, stores, and logistics could outpace sales if demand slows. The completion of the US$524.44 million buyback, retiring 9,990,599 shares, ties directly into the earnings catalyst by concentrating those improving profits across a smaller share base. Combined with Nuuly’s logistics automation push, this capital allocation update gives investors more context on how Urban Outfitters is balancing efficiency, growth investment, and shareholder returns at a time when operating leverage and margin sustainability are under closer scrutiny. But while earnings look stronger right now, investors should still be aware of how rising tariffs and higher SG&A could... Read the full narrative on Urban Outfitters (it's free!) Urban Outfitters’ narrative projects $7.7 billion revenue and $579.6 million earnings by 2029. This requires 6.7% yearly revenue growth and a $107.3 million earnings increase from $472.3 million today. Uncover how Urban Outfitters' forecasts yield a $86.69 fair value, a 7% upside to its current price. Some of the most optimistic analysts were already assuming URBN could reach about US$8.0 billion in revenue and roughly US$662 million in earnings, and they see Nuuly’s growth and margin potential very differently from more cautious views, so as this new earnings and logistics story unfolds you may want to weigh how much of that upside you personally find realistic. Explore 3 other fair value estimates on Urban Outfitters - why the stock might be worth 31% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Urban Outfitters research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free Urban Outfitters research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Urban Outfitters' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. Rare earth metals are the new gold rush. Find out which 31 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include URBN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Urban Outfitters Inc. reported record second-quarter net sales of $1.7 billion, an increase of 10.4% year over year. The company operates Urban Outfitters, Nuuly, Anthropologie and Free People, and attributed Q2 growth in part to 28.6% net sales increase at its Nuuly rental business, plus 18.6% growth in wholesale, according to a Wednesday press release. Sales at Nuuly reached $179 million in the second quarter, driven by the addition of nearly 113,000 new average active subscribers, a 30.4% year-over-year increase. “We actually crested over 500,000 active subscribers in early June before easing back into our typical summer seasonality,” Nuuly President Dave Hayne said on a Wednesday call with analysts. Meanwhile, overall retail net sales grew 8%. Comparable retail sales were up 6.2%, led by high single-digit digital channel growth and mid single-digit retail store sales growth. Retail comps at FP Group grew 10%, with Urban Outfitters up 8.4% and Anthropologie up 3%. Nuuly’s meteoric success in the clothing rental market helped parent company Urban Outfitters Inc. set a first-half record, with total company net sales increasing 10.9% to $3.14 billion. Nuuly rental subscription segment net sales were up 31.4% for the half. However, products from Urban Outfitters, Anthropologie and Free People are a large part of Nuuly’s success story, and comprised around 45% of Nuuly’s inventory in 2025, according to Wells Fargo analysts. “We remain thrilled to have our URBN sister brands at the heart of our assortment while continuing to broaden the selection of brands around them,” Hayne said on Wednesday. “Brand participation on Nuuly is truly a two-way street. Larger partners see meaningful follow-on sales across their own direct channels, while emerging brands appreciate the visibility, brand awareness, and new customer acquisition they derive from the platform.” Hayne added that second-quarter brand additions included Collina Strada, Faithfull, and Edikted, plus capsule collaborations with Simon Miller and Tyler McGillivary, and Revolve's private label brand. Nuuly’s Q2 brand choice count was up 35% to nearly 33,000, and Haynes said Nike is rolling out this month, with J.Crew launching in October. However, Hayne said that the company’s large brand assortment can be overwhelming for some customers. “To address this, we have looked beyond fashion and retail for models to emulate, and streaming platforms like Netflix and Disney+ serve vast catalogs of content to large subscriber bases, yet their experiences feel tailored to the user,” Hayne said. “Over the past year, we have improved our personalization engine to serve smarter recommendations based on style and brand affinities, resulting in big increases in satisfaction metrics.” Nuuly also added a custom fit guidance engine, and Hayne said the company was “focused on improving the checkout and delivery experience” for its customers. The brand also launched a fall 2026 campaign microdrama that focuses on customer experiences and sharability, and heavily targets Generation Z. In addition, Nuuly is streamlining its fulfillment capacity, with automated garment storage, order sortation and a picking solution all launching over the next 12 months. Nuuly is also expanding its East Coast operation from 300,000 to 1 million square feet with a new facility outside Philadelphia. “Once this project is complete, the full Nuuly network will support roughly 1.2 million subscribers with a significantly more efficient operation,” Hayne said. Meanwhile, rival service Rent the Runway has 155,692 active subscribers, according to the company’s Q1 2026 results posted June 3. The company said in April that it’s planning to launch more than 30 new brands this year as competition from Nuuly continues to nip at its overall growth. Looking ahead to the third quarter and full fiscal 2027, Urban Outfitters Inc. CFO Melanie Marein-Efron told analysts that total company sales were expected to grow in the high single-digit range. She added that retail segment comp sales are expected to rise mid-single digits, with single-digit retail segment comps growth across FP Group, the Urban Outfitters brand and at Anthropologie brand. Wholesale is expected to produce low teens growth. “At Nuuly, the brand could deliver high 20s revenue growth driven by continued subscriber momentum,” Marein-Efron said, adding, “We continue to believe we could deliver high single-digit total company sales growth for the full year fiscal 2027.”

Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 10.4% year on year to $1.66 billion. Its non-GAAP profit of $1.72 per share was in line with analysts’ consensus estimates. Is now the time to buy URBN? Find out in our full research report (it’s free). Revenue: $1.66 billion vs analyst estimates of $1.65 billion (10.4% year-on-year growth, 0.7% beat) Adjusted EPS: $1.72 vs analyst estimates of $1.73 (in line) Operating Margin: 17.4%, up from 11.6% in the same quarter last year Same-Store Sales rose 6.2% year on year, in line with the same quarter last year Market Capitalization: $7.10 billion Urban Outfitters’ second quarter results reflected balanced execution across its brand portfolio, with sales and non-GAAP earnings per share aligning with Wall Street’s expectations. Management attributed performance to double-digit growth in both its digital channels and its Nuuly subscription business, as well as consistent same-store sales growth. CEO Richard Hayne highlighted the company’s multi-brand approach and robust customer demand, noting, “All retail segment brands delivered positive comps and the wholesale and subscription segments registered record second quarter results as well.” Looking ahead, Urban Outfitters’ management is focused on driving high-single-digit revenue growth through continued investment in digital, store expansion, and the Nuuly subscription platform. CFO Melanie Marein-Efron outlined plans to leverage automation and AI initiatives to improve fulfillment and inventory productivity, while acknowledging ongoing headwinds from fuel costs and tariffs. Management remains confident in the resilience of its target customers, with Hayne stating, “Our brands are delivering what [customers] are looking for. We entered the second half...with strong operational momentum, supported by exceptional teams, a vibrant economy, [and] resilient consumers.” Urban Outfitters’ quarterly performance was shaped by robust digital engagement, subscription momentum, and operational improvements across its brands, offsetting increased transportation and tariff costs. Nuuly subscription accelerates: Nuuly’s active subscriber base surged to over 500,000 in early June, with revenue up 29% year-over-year. President Dave Hayne attributed this success to a broader assortment, improved personalization—using AI-powered recommendations—and operational expansion, including warehouse automation and new partner brands like Nike and J.Crew joining the platform later this year. Digital and omnichannel gains: Digital comps outpaced store comps in North America, driven by targeted marketing, community engagement, and platform diversification. The Urban Outfitters brand leveraged user-generated content and expanded its reach on platforms like TikTok and Reddit. The company also launched its first connected TV campaign for back-to-school, enhancing brand visibility among students. FP Movement and international expansion: FP Movement delivered 26% revenue growth and expanded its standalone store count to 97. Internationally, Free People and FP Movement experienced strong double-digit comp growth, supported by partnerships and store growth in Europe, confirming management’s conviction in global expansion potential. Anthropologie assortment reset: Anthropologie saw positive comps driven by new product introductions and an early fall influencer campaign. Management noted ongoing efforts to rebalance inventory and accelerate newness, while higher markdowns persisted as the brand worked through slower turning items. Beauty and wellness emerged as promising categories, with expanded store presence planned. Operational cost management: Despite higher inbound freight and fuel surcharges tied to geopolitical conflict, the company leveraged store occupancy and delivery expenses through disciplined execution. Automation in logistics and ongoing AI investments are expected to yield further productivity benefits, particularly as the company scales its fulfillment network and digital operations. Urban Outfitters’ outlook is anchored in scaling its subscription business, expanding digital and store channels, and managing cost headwinds through automation and process improvements. Nuuly platform expansion: Management expects Nuuly’s subscriber base and revenue to continue growing, supported by new brand partnerships, fulfillment automation, and a program extension planned for next year aimed at increasing average revenue per user. The company sees Nuuly as a core growth engine, with operating margins targeted in the high-single-digit range. AI and technology investment: Automation initiatives in warehousing, AI-powered personalization for digital commerce, and improved supply chain analytics are prioritized to drive operational efficiency. These investments are expected to reduce logistics costs and enhance customer experience over time, though management notes benefits will materialize gradually. External cost and macro pressures: Ongoing fuel surcharges and tariff volatility are expected to remain headwinds in the near term, impacting gross margins by an estimated 70 basis points per quarter. Management is actively monitoring shipping costs and inventory productivity, and plans to adjust variable spending in response to sales performance. They also cite the need to balance new store investments with disciplined SG&A management. In coming quarters, our analysts will monitor (1) the pace of Nuuly’s subscriber growth and new feature launches, (2) execution on AI-driven personalization and logistics automation, and (3) the impact of external cost pressures, particularly fuel and tariffs, on margins. Store expansion progress and the performance of new product categories, such as beauty and wellness at Anthropologie, will also be key markers of strategic follow-through. Urban Outfitters currently trades at $83.43, in line with $82.95 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Revenue: Net sales grew 10% to $1.7 billion, a Q2 record. Earnings Per Share (EPS): EPS grew 9% to $1.72 per diluted share. Operating Income: Increased 11% to a record $193 million. Net Income: Increased to $149 million. Gross Profit Rate: Increased by 4 basis points to 37.7%. SG&A Expenses: Increased by 10%, in line with sales growth. Retail Segment Comp: Increased 6%, with digital comps slightly exceeding store comps. Nuuly Revenue: Rose 29% to $179 million, with average active subscribers reaching 484,000 (up 30% year-over-year). Nuuly Operating Income: Reached 10% operating margin, equating to $18 million. Wholesale Segment Revenue: Increased 19%. Anthropologie Brand: Total revenue grew 5%, with a 3% retail segment comp. Urban Outfitters Brand: Total sales grew 8%, with a global retail segment comp of 8%. FP Group: Total revenue increased 15%, with a retail segment comp of 10%. Free People Brand: Total sales growth of 11% and a retail segment comp of 9%. FP Movement Brand: Total revenue growth of 26% and a 13% retail segment comp. FP Movement Store Count: Opened four new stores during the quarter, bringing the total to 97 stand-alone stores. Store Openings/Closings: Planning to open approximately 54 new stores and close approximately 18 stores during fiscal year '27. Capital Expenditures: Planned at approximately $475 million for FY27. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Is URBN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Urban Outfitters Inc (NASDAQ:URBN) delivered record quarterly sales and earnings per share, with net sales growing 10% to $1.7 billion and EPS up 9% to $1.72, marking the eighth consecutive quarter of record sales and profits. All retail segment brands delivered positive comps, with the FP Group achieving a 10% retail segment comp and the Urban Outfitters brand posting an 8% comp, driven by strong regular price sales and customer growth. Nuuly, the subscription rental business, achieved record revenue of $179 million (up 29%) and reached a milestone 10% operating income rate, with average active subscribers growing 30% to 484,000. The wholesale segment delivered exceptional double-digit revenue growth of 19%, driven by strength across both specialty and department store accounts, particularly in FP Movement, Intimates, and women's apparel. Management expressed confidence in the consumer environment, citing job stability, rising take-home incomes, and consistent spending on fashion, while also highlighting successful AI-related technology investments that are expected to benefit the company for years. The company is navigating higher inbound freight costs, domestic transportation costs, and delivery expenses driven by fuel surcharges associated with the ongoing war in the Middle East, which negatively impacted IMU by approximately 50 basis points and outbound delivery expenses by 20 basis points. Anthropologie experienced elevated markdowns during the quarter as the team worked through slower turning inventory, and the brand's home category was flat, with a slight decline in home accessories. The company faces higher year-over-year tariff costs and inbound freight fuel surcharges, which partially offset gross profit improvements, despite receiving refunds for previously paid IEFA tariffs. Nuuly's subscriber growth is subject to seasonality, with active subscribers easing back from over 500,000 in early June to 484,000 average for the quarter, and back-half operating rates are anticipated to ease to high single-digits. The European Urban Outfitters business is expected to moderate to a mid-single-digit positive comp range in Q3 due to very difficult multi-year comparisons, and the company assumes current oil surcharges will remain in effect for the remainder of FY27, representing approximately 70 basis points unfavorable impact on each of the third and fourth quarters. Q: Can you elaborate on the consistent comp strength at the core Urban brand and the opportunity remaining, and what do you see as a sustainable multi-year comp profile for Anthropologie? Also, what are the comp trends you've seen in August at both concepts? A: Richard Hayne (CEO) stated that the company's comp plans for Q3 are mid-single-digit for Anthropologie, high-single-digit for Free People/FP Movement, and high-single-digit for Urban (split between high-singles in North America and mid-singles in Europe), with August trends in line with these plans. A company representative added that Urban's success is driven by consistent strategy in product (denim, bottoms, lounge), marketing (double-digit new customer acquisition), and channel execution. Melanie Marein-Efron (CFO) noted Anthropologie is focused on returning to a mid-single-digit comp profile, expressing confidence in the team's ability to deliver low-to-mid-single digits in the short term. Q: Does your early read on fall give you confidence that Anthropologie is out of the woods on recent assortment challenges, and are you through the slower-turning inventory, or do you expect any margin pressure in Q3? A: Melanie Marein-Efron (CFO) confirmed the brand is rebalancing its assortment to work through historical styles and make room for newness. The July early-fall event drove full-price comps and gave the team high confidence in styles to chase. Frank Conforti (Co-President and COO) added that the Q3 plan for 25-50 basis points of gross profit margin improvement contemplates giving Anthropologie room to accelerate into strong fall reads while clearing remaining product. Q: How did Nuuly achieve a 10% operating margin so fast, and how do you think about the path beyond the high single-digit rate for this year? A: Frank Conforti (Co-President and COO) credited Nuuly's continued year-over-year improvement in logistics and fixed costs as the business scales. He reiterated the belief that the brand can run at a 10% operating profit rate or better on an annual basis, noting they are getting closer each quarter. Dave Hayne (President of Nuuly) added that the business is focused on scaling operational execution, with automation investments in Kansas City and a new facility outside Philadelphia planned to support up to 1.2 million subscribers. Q: Can you talk about the growth opportunity for Free People and FP Movement, particularly internationally? A: Sheila Harrington (Global CEO, Urban Outfitters and Free People Group) highlighted strong double-digit comp growth for Free People internationally, outpacing North America, with 14 stores currently in the UK and Europe. She noted early strong reads for FP Movement internationally, with plans for European growth starting with wholesale and e-commerce, followed by stores. The partnership with Barry's and Selfridges continues to deliver strong growth. Q: Given the elevated level of promotion and more moderate comp pace, is Anthropologie still on track to deliver a mid-teen operating rate this year? A: Melanie Marein-Efron (CFO) stated the brand has been gaining share with 22 consecutive positive comps outpacing the market. She acknowledged slightly higher markdowns will continue as they work through assortment opportunities, but the team's ability to leverage speed-to-market initiatives will help. She expressed confidence in continuing to gain market share and is focused on getting back to a mid-single-digit comp range. Q: What are your thoughts on the current competitive environment and pricing? Are you seeing competitors reset prices as they move through tariff inventory, and does your plan for the back half assume any flexibility should the promotional environment pick up? A: Richard Hayne (CEO) stated they don't see promotional activity picking up, aside from a brief period around Amazon Prime Day. Current promotions are related to back-to-school, similar to last year, with Urban's high-single-digit comps driven by full-price sales. Frank Conforti (Co-President and COO) added that AUR is planned up for the remainder of the year, driven by mix (strong bottoms cycle, higher price points) rather than like-for-like price increases. Q: On Nuuly, what are the retention rates and how is the business evolving in terms of brand mixhow much is from URBN brands versus third-party, and where do you see that going over time? A: Dave Hayne (President of Nuuly) reported retention rates have remained relatively stable, with early subscribers being the most engaged and loyal. He noted the URBN brands will continue to be at the heart of the assortment, but the percentage may shift as they add more third-party brands. The team's goal is to continue adding brands that add value and benefit to subscribers, with the mix remaining stable currently. Q: Can you talk about the beauty category opportunity, particularly at Anthropologie, and how you're thinking about AUR and pricing going forward? A: Melanie Marein-Efron (CFO) highlighted beauty as a consistently growing category at Anthropologie, delivering high single-digit comps in Q2. The brand is expanding its beauty assortment to more stores, doubling the count this fall, and sees beauty and wellness as a new opportunity complementing the customer relationship. On AUR, Frank Conforti (Co-President and COO) noted price comparisons are complicated by mix, with the strong bottoms cycle and higher-quality product elevation driving AUR up, planned up for the remainder of the year. Q: Where do you stand in your AI implementation with regards to product life cycles? Is one brand further along, and when does it start to show through in a meaningful way? A: Dave Hayne (CTO and President of Nuuly) stated AI is being deployed across the company, enabling associates to optimize workflows and driving an explosion of creativity. The tech team is accelerating software delivery cycles and building capabilities across supply chain, creative design, marketing, and inventory. He noted measurable efficiencies in these complex areas will take time to fully materialize, but the company is confident in the trajectory, with speed-to-market and production/design being a big area of focus. Q: Can you provide an update on the tariff and freight environment and its impact on the business? A: Frank Conforti (Co-President and COO) reported that fuel surcharges related to the Middle East war had a negative impact of approximately 50 basis points in IMU and 20 basis points in outbound delivery and freight expense in Q2 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Urban Outfitters, Inc. URBN reported strong second-quarter fiscal 2027 results, with earnings matching the Zacks Consensus Estimate, while revenues surpassed the consensus mark. Also, both metrics improved from the prior-year quarter’s reported figures. The company delivered record second-quarter sales and profits, marking its eighth consecutive quarter of record performance. As a result, shares of URBN increased 9.5% yesterday.Management highlighted broad-based momentum across the Retail, Subscription and Wholesale segments, along with continued customer engagement and disciplined execution. All Retail segment brands posted positive comparable sales growth, while Nuuly continued to scale rapidly on strong subscriber growth. The Wholesale segment delivered robust double-digit gains, led by the FP Group. Urban Outfitters, Inc. price-consensus-eps-surprise-chart | Urban Outfitters, Inc. Quote This lifestyle specialty retailer delivered adjusted earnings per share of $1.72, in line with the Zacks Consensus Estimate. Adjusted earnings increased 8.9% year over year. The company’s earnings per share were $2.78 compared with $1.58 in the prior-year quarter.Net sales increased 10.4% year over year to $1,661.9 million, beating the consensus mark of $1,648 million. The sales performance benefited from strength across Retail, Wholesale and Subscription operations. Total Retail segment net sales rose 8% year over year to $1.39 billion, while comparable Retail segment sales increased 6.2%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. Comparable Retail segment sales increased 10% at FP Group, 8.4% at Urban Outfitters and 3% at Anthropologie. We estimated the Retail segment’s sales to increase 7.4% year over year.Within the FP Group, total sales increased 15% year over year to $478.1 million, driven by continued momentum across both Retail and Wholesale operations. Free People and FP Movement continued to benefit from strong customer demand, while the FP Group Wholesale segment delivered a 19% increase in revenues. Urban Outfitters posted an 8% comparable-sales increase, supported by strength across North America and Europe.The Wholesale segment posted net sales growth of 18.6%, driven by a 19.2% increase in FP Group wholesale sales due to higher sales to specialty customers and department stores.Nuuly, the company’s women’s apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 28.6% year over year to $178.6 million, primarily driven by a 30.4% increase in average active subscribers. Average active subscribers reached 484,000 during the quarter, while the subscriber base crossed 500,000 in early June. We estimated the Nuuly segment’s sales to rise 18.7% year over year. Gross profit rose 27.4% year over year to $721.6 million in the fiscal second quarter, mainly driven by higher net sales during the period. However, the reported gross margin increased 580 basis points year over year to 43.4%, which beat our estimate of 37.4% and benefited from a $95.7-million IEEPA tariff refund. Adjusted gross margin increased 4 basis points to 37.7%. The improvement was primarily driven by benefits from store occupancy costs from higher comparable Retail store sales and leverage in delivery expenses from initiatives that helped offset fuel-surcharge costs. These benefits were partly offset by higher Retail markdowns at Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs.Selling, general and administrative (SG&A) expenses increased 10.5% year over year to approximately $433 million. Our model estimated SG&A expenses to increase 8.8% year over year in the fiscal second quarter. The increase was primarily driven by higher marketing investments to support customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses. These increases were partly offset by leverage in store payroll expenses resulting from higher Retail store sales. The company continued to invest in artificial intelligence technology to support its current and future operations. As a percentage of net sales, SG&A expenses remained flat at 26%, which met our estimate. URBN reported adjusted operating income of $193.1 million, up 11% from $174.4 million in the prior-year quarter. The adjusted operating margin improved 3 basis points year over year to 11.6%, reflecting the increase in adjusted gross margin. In the first six months of fiscal 2027, the company opened 23 stores and closed six stores. Store openings included four Anthropologie, seven Free People, 10 FP Movement and two Urban Outfitters stores, while closures included one Anthropologie, one FP Movement, three Urban Outfitters and one Menus & Venues location.As of July 31, 2026, URBN operated 252 Urban Outfitters stores, 257 Anthropologie stores and 284 FP Group stores, including 97 FP Movement locations. The company operated eight Menus & Venues restaurants and nine franchisee-owned stores. As of July 31, 2026, Urban Outfitters had cash and cash equivalents of $598.8 million, up from $332.2 million in the prior-year period. Marketable securities totaled $346.8 million, while total shareholders’ equity stood at $2.85 billion at the quarter-end.As of July 31, 2026, total inventory increased 11.8% year over year to $778.5 million. Total Retail segment inventory rose 12%, while comparable Retail segment inventory increased 8.4%. Wholesale segment inventory increased 10%. The increase in Retail inventory was primarily due to higher net sales and the timing of inventory receipts, while the increase in Wholesale inventory reflected higher sales.During the first six months of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of July 31, 2026, 10 million common shares remained authorized for repurchase under the existing program. Urban Outfitters’ management expects third-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses.The Retail segment’s comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit growth at FP Group, mid-single-digit growth at Urban Outfitters and low-to-mid-single-digit growth at Anthropologie. Nuuly is expected to post high-twenties revenue growth, while the Wholesale segment is projected to generate low-teens growth.For the fiscal third quarter, URBN expects the gross profit margin to increase 25-50 basis points year over year. The anticipated improvement primarily reflects higher initial merchandise margins due to lower tariffs and leverage in occupancy costs, partly offset by higher fuel surcharges.Management anticipates fuel surcharges to continue affecting the business through the remainder of fiscal 2027. The company noted that these surcharges are expected to create an unfavorable impact through higher inbound freight and delivery expenses.Management expects third-quarter SG&A expenses to grow in line with or slightly below sales growth, reflecting continued investments in marketing, technology and AI initiatives while benefiting from leverage in store payroll and occupancy expenses. For fiscal 2027, management maintains its expectation for positive high-single-digit total company sales growth. The outlook reflects continued momentum across the portfolio, with Retail comparable sales expected to grow in the mid-single-digit range, Nuuly revenues projected to increase in the high-20% range and Wholesale revenues anticipated to grow in the low-teens range.URBN expects fiscal 2027 gross margin to expand by approximately 25 basis points year over year. Management sees an incremental margin opportunity in the second half, primarily from improved initial merchandise margins as tariff pressures moderate. However, fuel surcharges are expected to remain a headwind through the remainder of the fiscal year.For the full year, SG&A is expected to grow in line with sales, while inventory growth is expected to remain at or below sales growth as the company continues to focus on improving product turns. Management also plans to continue investing in marketing, technology and AI initiatives to support customer acquisition and long-term growth.Capital expenditures for fiscal 2027 are planned at approximately $475 million. Approximately 35% of spending is expected to be allocated to retail store expansion and support, 50% to logistics investments and the remaining 15% to technology investments and home-office expansion. The logistics investments are intended to expand capacity and automation across the Subscription and Retail businesses.URBN expects to open approximately 54 new stores and close approximately 18 stores during fiscal 2027. Net new store growth is expected to be primarily driven by FP Movement. The company plans to open 21 FP Movement, 12 Free People, 12 Anthropologie and eight Urban Outfitters stores during the year. URBN Stock Past Three-Month Performance Image Source: Zacks Investment Research Management expressed confidence as it enters the second half, citing double-digit sales and profit growth at Free People and FP Movement, positive comparable sales at Anthropologie and high-single-digit comparable sales at Urban Outfitters in both North America and Europe. Management also emphasized URBN’s multi-brand strategy and structural diversification across brands, demographics, product categories, distribution channels and geographies.Shares of the Zacks Rank #2 (Buy) company have gained 10.8% in the past three months against the industry’s 11.7% decline. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.American Eagle Outfitters Inc. AEO is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%. 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 Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research