Why Urban Outfitters Stock Just Crashed

• Urban Outfitters appears to person missed income estimates for the vacation season.

• Earnings are owed retired soon, and the banal could beryllium heading for a "miss."

• 10 stocks we similar amended than Urban Outfitters ›

Urban Outfitters (NASDAQ: URBN) banal tumbled 11% done 11:50 a.m. ET Monday contempt reporting "record vacation sales" for November and December.

Total income for the 2 months ended Dec. 31, 2025, roseate 9% successful examination to the year-ago period.

Same-store income for the institution arsenic a full accrued 5%, with SSS increasing 3% astatine Anthropologie, 5% astatine Free People, 9% astatine Urban Outfitters, and 18% astatine FP Movement.

Is that bully news? Well, for the twelvemonth (actually, the 11 months from February done December), Urban Outfitters said income were up 11%, and comps were up 6%. So, from that perspective, the 2025 vacation play really represented a spot of a slowdown from the maturation rates earlier successful the year.

I fishy this is the main crushed for the sell-off today. Also disturbing is the information that analysts person been forecasting amended than 9% income maturation for the January quarter, and with the 2 astir important months of that 4th tracking beneath Wall Street's target, the accusation would look to beryllium that Urban Outfitters is heading for a "miss" erstwhile it adjacent reports earnings.

Should you merchantability earlier the net are released? Maybe yes.

Consider: Urban Outfitters banal costs 15 times trailing earnings. Weak escaped currency travel means the price-to-free currency travel ratio is adjacent much costly astatine 18 times. That was already looking a spot pricey with net forecast to turn little than 10% implicit the adjacent 5 years. If income -- and net -- maturation are going to autumn abbreviated of that people now, owed to the vacation income miss, past Urban Outfitters banal is astir apt adjacent much costly than it appears.

With shares inactive up 46% implicit the past year, present mightiness beryllium a bully clip to merchantability Urban Outfitters stock.

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