Urban Outfitters Is Slipping, Falling. But Can They Get Up?

So I recently read Urban Outfitters (URBN.O) was a little down on its luck. According to Bloomberg, their shares are down 27 percent this year, the largest drop among U.S. specialty apparel retailers. Gasp! Will URBN be able to rebound from their recent decline in sales?  I personally believe they can if they do these three little things. Hire new talent, collaborate, and stay clear of the Ambercrombiesque type publicity (diversify). As Jezebel noted, their board members are old, averaging around 50 and are predominately White men, who may be slightly behind the trends I’m guessing, a pinch maybe. Let’s face it, URBN.O CEO Richard Hayne, is no longer hip or a hippie nor is he an Urban Outfitter but a multi-billionaire, ‘mom and apple pie conservative’. The company is slowly reflecting their company president's political affiliation. Urban Outfitter may be losing their cool. You're not cool if your insensitive to Native Americans, steals designers' jewelry concepts, your boardroom is not diverse and you do not support Gay rights. Miley Cyrus is not a fan.

Urban Outfitter needs a face-lift and need to continue slashing prices. I not only say this as an Urban Outfitter bargain shopper, which I pride myself in but also as a business minded individual and future entrepreneur who welcomes their downfall like a young greedy Montgomery Burns. Moreover, URBN may be a little too big for their britches and may be succumbing to retail consolidation. They own four other brands or retail establishment that essentially the same store in my opinion. Anthropologie, Free People, Terrain, and BHLDN, all appeal to young White woman between the ages of 21-40. Honestly, URBN needs to consolidate those 4 other stores into one big Anthropologie. Not to mention, if you include the store Urban Outfitter's women’s apparel and accessories, making five retail establishments that target woman. Terrain is more of home decor then apparel but target women nonetheless. Geez whiz, I understand women love to shop but talk about watering down your brand. It is like Urban Outfitter is competing with themselves.

Theres not much more I can say. Urban Outfitter is a great retail establishment but I feel like they should consolidate and revamp the brands they currently sell and the masses agree. They have great ecommerce but are being challenged by other online retail clothing sites that cater more to men shoppers, a target consumer I believe URBN tends to forget about. Online stores like Jackthreads, Gilt, Shoplikekings, and Karmaloop provide an array of trendy fashionable clothing at a discount. What is ironic is that the clothes are trendier than Urban Outfitters but are usually that clothing line's previous season. That should tell you something Urban Outfitter, its time to catch up.