1403 ET [Dow Jones]--Urban Outfitters' clothing rental service, Nuuly, looks like an increasingly important and seemingly underappreciated growth and profit driver, Baird analysts say in a note. Nuuly has a competitive advantage compared to other rental service peers, given its ability to leverage the product, marketing expertise, consumer insights and finances of Urban's broader business, the analysts say. While accounting for less than 10% of total sales, Nuuly contributed around a third of total sales growth last year and in 1Q, the analysts note. The service should eventually boost Urban's margins and earnings power as it targets $1B in sales in the medium term, the analysts say, upgrading Urban's stock to outperform. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
June 11, 2025 14:05 ET (18:05 GMT)
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