The efforts started a year back are finally bearing the fruits now for Urban Outfitters, Inc. (NASDAQ:URBN). After a consecutive drop in same-store sales during the last three-quarters, the retailer has finally reported 4% growth in its comparable sales. The number is very encouraging for a store that lost its glory of being fashionable and stood abandoned by its very own customers.
Now and then
Urban Outfitters, Inc. (NASDAQ:URBN) CEO Richard Hayne credited the success to a number of changes introduced over the last one year. One of the largest transitions that the company made was to move from Teens To Hipsters, he said. The problems surfaced for the retailer when its product line started rolling out designs and fashion garments for teenagers in the age group of 14-15. The requirements of this age group were widely different from the company’s traditional customers, who are older and much trendier. Hayne said that the shift to younger shoppers was not good for the company and thus, they began to refocus on their college and post-college customer base.
Urban Outfitters, Inc. (NASDAQ:URBN) fell out of track under the previous CEO Glen Senk, who was held responsible for driving away shoppers with dull and bizarre fashion styles. However, the situation was saved from worsening after billionaire founder Hayne decided to shoulder the responsibility. The brand plunged into aggressive revival strategies to make its product line suitable for nearly everyone irrespective of their location.
The company launched more chic rompers and party dresses and trashed graphic tees and other teen stuff. Resultantly, it was able to see prices of its products increase. Urban Outfitters, Inc. (NASDAQ:URBN) also replaced its graphical image on its homepage with sophisticated images, which garnered more attention than ever. Alongside revamping digital image, the company will also make its stores look clean as it intends to reduce the number of styles in the coming months. Having said that, the retailer still has a long way to go to completely turnaround from what it was.