Urban Outfitters, the hipster-center, stock has experienced a dramatic hit, falling by 15% this past year. Retail reported a decline in a whopping 12% during its first quarter, while sales also fell. This major decline has had a negative impact on Anthropology and Free People because of Urban Outfitters’ ownership, even though these stores have contained less central issues.
For the recorded period, that spanned until Apr. 30, analysts expected earnings of 27 cents a share on revenue of 680 million. This contrasts sharply with the earnings of 32 cents per a lower 648 million during the same monthly period last year.
The causes of this dramatic decline become evident when observing Urban Outfitters recent products. The quirky, hip look that had once been Urban Outfitters appeal, has devolved into a bizarre collection of useless and mindless fashion. Many shoppers feel that too many of their products have people puzzled over their obscurities.
Another major issue that Urban Outfitters faced this past year was its creative insensitivity. Most infamous of which was its “depression shirt” fiasco. Additionally, other shirts have portrayed offensive themes such as one which says “eat less,” while another exhibits a drunk Jesus.
Shoppers feel that these ideas are not clever or humorous, they’re simply distasteful.
Finally, Urban Outfitters customers feel that the brand needs to alter it’s targeted demographic. Currently, as well as in the past, Urban Outfitters has directed its advertising towards teenagers. While this is a tactful decision, teenagers are no longer vulnerable to Urban Outfitters’ marketing for a variety of reasons.
First of all, stores such as Forever 21 and H&M offer many similar items to that of Urban Outfitters. Additionally, these products are of equal quality, cost significantly less, and are often within close proximity to Urban Outfitters stores. Furthermore, teenagers are also growing weary of the elaborately strange items offered by Urban Outfitters, which are too often the most expensive products as well.
Last month, Urban Outfitters named Trish Donnelly as the new president of Urban Outfitters North American brand. She plans to make dramatic changes to the chain. Hopefully, some positive changes will be seen as early as this upcoming fall.