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Published
Oct 21, 2014
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Urban Outfitters: results revised downward

Published
Oct 21, 2014

Urban Outfitters believed that it would achieve better sales figures this fall. But the management of the American company, which owns the brands Urban Outfitters, Anthropologie and Free People, has been disappointed.

Urban Outfitters store in Miami. Image: Urban Outfitters


The company has had to announce the fact that it is not likely to achieve its objectives in its third quarter, ending in late October. 

Weaker than anticipated sales, which have declined by several notches, should have a negative impact on its gross margin. 

Problems at the company have come from its namesake brand. Urban Outfitters primarily attracts teenagers, whose finances are limited. 

The brand has aimed to attract the 18-28 demographic but has thus far been largely unsuccessful. On a comparable basis, the company saw its sales fall back by nearly 10% in the last quarter. 

The group has 235 Urban Outfitters stores and 194 Anthroplogie stores worldwide. Free People encompasses 94 stores in North America and 1,400 resellers worldwide. It generated a turnover of 1.172 billion euro in the first half ending in late July.

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