Urban Outfitters Losing Investors With Failing Fashions
When was the last time you bought something out of Urban Outfitters?
The urban fashion chain store is loosing its appeal primarily because its clothes are no longer fashionable...“This is a fashion issue, plain and simple,” Chief Executive Officer Glen Senk said on a conference call to discuss earnings Nov. 14. “We need more compelling product.”
Here's an excerpt from a story that appeared last month in BusinessWeek:
Urban Outfitters was Louis Redondo’s favorite store for fashionable hats and T-shirts five years ago. Today, he says he’d be embarrassed to wear its bright, striped sweaters and flared velvet pants for anything except a Halloween costume.
“I used to walk out of there with my bags stuffed full of clothing,” said Redondo, a 30-year-old technical writer from Jersey City, New Jersey, who now shops at Hennes & Mauritz AB stores. “It was definitely my primary source. Today I’d just look comical if I shopped there -- I’d be laughed at.”
“Bizarre” and “lackluster” fashions at its namesake stores may be why Philadelphia-based Urban, which also operates Anthropologie and Free People, is losing investors’ confidence, said Pamela Quintiliano, a New York-based analyst at Oppenheimer & Co. The shares have slid 27 percent this year, the biggest drop among U.S. specialty apparel retailers except for Aeropostale Inc.
So I put it to the test, to see if their clothing really has become wack. When you check out their website, they give you a little snippet of what are their best fashion finds... but none were suggestive of swagger...
Read More about Urban Outfitter here: http://www.businessweek.com/news/2011-11-20/urban-outfitters-losing-investors-with-failing-fashions-retail.html