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    Urban Outfitters's Performance Is Not Very Optimistic.

    2015/11/22 12:35:00 15

    Urban OutfittersPerformanceBrand Strategy

    The US apparel group Urban Outfitters recently announced its third quarter results. Its net profit rose 10.3% to $52 million from $47 million 100 thousand last year to $0.42 in the three months ending October 31st. Total revenue rose by 1.3% to $825 million 300 thousand, up from $814 million 500 thousand in the same period last year and 1% in the same store.

    According to the relevant data, the company's brand Anthropologie and Free People business has been strong, but Urban Outfitters has been affected. The company has revealed that the Urban Outfitters brand is in North America. European Region The growth rate of shops will slow down.

    Hayne said: "obviously, consumers' increasing affinity for direct consumption shopping has slightly mediated the need to shop in stores. Real shopping trips, especially undifferentiated shopping malls, have become less frequent. D-T-C this is directly facing consumer shopping. Sales mode It is more efficient. It allows consumers to browse more products from many different sources, see more shapes and coat collocations, and connect with others to become part of the social network. Consumers are willing to pay for these advantages.

    All this has put a lot of pressure on the traditional retail industry. And earlier, when Urban Outfitters When buying a pizza chain called Pizzeria Vetri, Hayne showed how willing he was to take a new approach. Restaurant sales have been rising steadily. Consumers are more likely to spend money on eating out than buying more clothes.

    By brand, Free People retail sales rose 3%, Urban Outfitters rose 1%, Anthropologie was flat. Earnings were consistent with Wall Street analysts' average expectations, but the total sales volume was close to $47 million, which failed to meet expectations. The result was a 6% or 1.42 to 21.25 US dollar share price decline.

    Urban Outfitters CEO Richard Hayne was disappointed in the performance. With the announcement of Macy's s and Nordstrom earnings, Richard Hayne is full of doubts about the development of the retail industry.

    "Obviously, in the past year, the environment of the clothing retail industry has always been challenging," Hayne said. Many brands are struggling, and some brands produce more reasonable performance. Only a few brands can show strong strength. Hayne may have a deeper idea of the future development of the retail and fashion industry, but so far, the third quarter results show that retailers are facing a difficult prospect.


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