Urban OutfittersURBN +3.04%88 Gross Margin % is 36.63% as of Apr. 2026, which is 11% above its 10-year median of 33.07. GuruFocus rates URBN with a GF Score™ of 88/100 and a GF Value™ of $59.66 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,117 Retail - Cyclical companies, Urban Outfitters ranks worse than 50.67% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Urban Outfitters had a gross margin of 36.63% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Urban Outfitters Gross Margin % Related Terms
Urban Outfitters Gross Margin % Historical Data
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The historical data trend for Urban Outfitters's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
URBN vs BOOT, GAP, VSCO: Gross Margin % Comparison
For the Apparel Retail subindustry, Urban Outfitters's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Urban Outfitters Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Urban Outfitters's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Urban Outfitters's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Urban Outfitters (URBN) has a Gross Margin % of 36.63% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Urban Outfitters and its competitors. This is 11% above median its historical median of 33.07. Over the past decade, Urban Outfitters' Gross Margin % has ranged from 24.98 to 35.97. According to the industry distribution chart, Urban Outfitters ranks #566 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 50.7%.
Is Urban Outfitters' Gross Margin % too high?
Urban Outfitters' current Gross Margin % of 36.63% is 11% above median its 10-year median of 33.07. Over the past 10 years, this metric has ranged from a low of 24.98 to a high of 35.97. The Retail - Cyclical industry median Gross Margin % is 36.23. Urban Outfitters' value of 36.63% is 1.1% above this industry median. Based on the distribution chart, Urban Outfitters ranks #566 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Urban Outfitters has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Urban Outfitters' Gross Margin % compare to BOOT and GAP?
According to the Retail - Cyclical industry distribution chart, Urban Outfitters ranks #566 out of 1117 companies for Gross Margin %. This places Urban Outfitters in the lower half of its industry. The industry median Gross Margin % is 36.23. Urban Outfitters' value of 36.63% is 1.1% above this benchmark. Historically, Urban Outfitters' own Gross Margin % has ranged from 24.98 to 35.97 over the past decade. While the company's 10-year median is 33.07 vs. the industry median of 36.23, Urban Outfitters has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Urban Outfitters's current Gross Margin % of 36.63% is 1.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Urban Outfitters and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Urban Outfitters's current Gross Margin % is 36.63%, which is 11% above median its own 10-year median of 33.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Urban Outfitters stock overvalued right now?
Based on GuruFocus' analysis, Urban Outfitters (URBN) is currently considered Modestly Overvalued. The stock's GF Value™ is $59.66, compared to a current price of $73.54 — trading 23.3% above its estimated fair value. The current Gross Margin % is 36.63%, which is 11% above median its 10-year median of 33.07 and 1.1% above the Retail - Cyclical industry median of 36.23. Urban Outfitters' overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Urban Outfitters (URBN), the current Gross Margin % is 36.63% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Urban Outfitters (URBN) Overvalued in 2026?
Based on GuruFocus' analysis, Urban Outfitters stock appears to be overvalued.
The current stock price of $73.54 is trading 23.3% above its estimated GF Value™ of $59.66.
GuruFocus considers Urban Outfitters to be Modestly Overvalued.
Key valuation signals for URBN:
Gross Margin %: 36.63% (11% above median its 10-year median of 33.07)
GF Value™: $59.66 vs. price of $73.54 (23.3% above fair value)
Industry Position: 1.1% above the Retail - Cyclical median (#566 of 1117)
No single metric tells the full story. See the URBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1970, Philadelphia-based Urban Outfitters is a multibrand apparel and home goods retailer that operates nearly 800 stores and e-commerce in the US, which accounts for about 87% of sales, as well as in other regions. Its retail nameplates are Urban Outfitters (22% of fiscal 2026 sales), Free People/Movement (26%), and Anthropologie (42%). Retail accounted for 86% of fiscal 2026 revenue, but Urban Outfitters also sells products through a wholesale operation, owns some restaurants, and operates a fast-growing clothing rental and resale business called Nuuly (9% of sales). Urban Outfitters primarily markets to young adults and offers products across apparel (66% of sales), home goods (16% of sales), accessories (13% of sales), and more.
88GF Score
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