PHILADELPHIA — Retailer Urban Outfitters noticed gross sales lower 12.6% yr over yr within the second quarter, in accordance with the corporate’s current quarterly report. While Urban Outfitters model gross sales decreased, the whole firm URBN gross sales elevated by 7.5% throughout that point. The firm plans to spice up investments within the Anthropologie and Free People teams, that are seeing progress.
“There is still much work to be done to right the Urban ship,” chief govt officer at URBN, Richard A. Hayne, stated in an earnings name Tuesday. “That work is underway but could take longer than we originally expected.”
URBN, which opened its first retailer in West Philadelphia in 1970, is at present based mostly on the Navy Yard in South Philadelphia. Brands within the URBN portfolio embody Urban Outfitters, Anthropologie, Free People, Terrain, Nuuly, and the corporate’s restaurant group often known as Menus & Venues.
There are a minimum of six Urban Outfitter shops in Greater Boston, in accordance with the corporate’s web site, together with within the metropolis — at Faneuil Hall, in Allston and on Newbury Street — in addition to in Burlington, Dedham and Natick.
The Anthropologie group reported “outstanding second quarter performance,” in accordance with world CEO of the Anthropologie Group, Tricia D. Smith.
“These days it’s just harder, especially for younger consumers and those with less income, to do the kind of discretionary buying that they were able to do before,” stated Peter Fader, professor of promoting on the University of Pennsylvania’s Wharton School. He has not finished consulting for the corporate however has collaborated with them previously in tutorial analysis.
“Things will get better, but for right now, it’s time to batten the hatches on stuff you don’t necessarily need and that goes right to the heart of Urban Outfitters,” Fader stated.
As of final month, there have been 200 Urban Outfitters shops in North America. The firm plans to shed eight shops and open two extra, bringing the whole quantity to 194 by subsequent January.
“It’s tempting for people who don’t know them as well to read things into things and to go to extremes,” Fader stated. “Right now, it appears that they’re kind of pulling the rug out from under Urban Outfitters, but they’re not doing that. It’s a slight adjustment; it’s an appropriate one.”
While Urban Outfitters struggles, the corporate plans to extend advertising to draw clients to the higher-performing Free People and Anthropologie teams.
The Anthropologie group, which incorporates the style retail retailer Anthropologie and the model’s house and backyard idea, Terrain, expects to extend its attire and equipment enterprise to $2 billion and double its home-based business to achieve $1 billion over the following few years.
The Anthropologie group will develop from 216 shops in North America as of final month to 219 shops by January of subsequent yr and increase to 270 shops over the following a number of years.
Similarly, URBN opened 5 FP Movement places this yr in North America, that are devoted to the group’s retail activewear. Free People shops will enhance from 146 this previous January to 147 shops by subsequent January in North America.
Fader stated URBN is extra agile than different publicly traded corporations at adapting retailer places to the present atmosphere. “They’re not afraid to make bold changes on both sides: opening and closing,” he stated.
Store closings are as a consequence of leases coming to an finish and the choice to not renew them, in accordance with an organization spokesperson.
As the corporate strategizes for the long run, there may be additionally give attention to Nuuly, URBN’s rental clothes program. The firm plans to open a brand new achievement heart for the model in Missouri in fiscal yr 2025.
Source: www.bostonherald.com”