Urban Outfitters’ chain fell back
Anthropologie and Free
People chains performed well and contributed to the increase: Anthrolopogie
stores which had been opened more than a year ago, saw their turnover increase
13 %, Free People even managed
a 30 % growth.
The result was that the like-for-like turnover for Urban Outfitters rose 7
%, even though Urban Outfitters’ stores only grew their turnover 1 %. The chain particularly underperformed in North America, its home
turf.
Too expensive for teenagers
CEO Tedford Marlow credited missed trends, non-efficient
marketing and a lousy creative execution for the drop in turnover. That
is why the company fears it will have to push through more price drops during
the Christmas holiday in order to compete with other chains.
“This promotional environment could negatively impact our gross profit
margins for the fourth quarter”, Chief Financial Officer Francis Conforti said.Analysts believe Urban
Outfitters suffers from the low numbers of part-time jobs for teenagers: with a lack of cash, these consumers choose
cheaper brands.
(Translated by Gary Peeters)
