Urban Outfitters Inc. Aims to Supersize Anthropologie Stores
Source Philly.com Suzette Parmley
In another move to boost its lower performing brands, Urban Outfitters Inc. on Wednesday announced plans to roll out larger Anthropologie stores during a first-quarter earnings call in which the company reported record sales
Some of the larger Anthropologie stores will sell BHLDN and Terrain merchandise.
The entire company generated net income of $30 million – or $0.25 per diluted share – for the three months ended April 30.
Comparable retail segment net sales increased 2 percent at Urban Outfitters, were flat at the Anthropologie Group, and fell 2 percent at Free People.
Introducing larger Anthropologie stores is the latest in a series of moves by the retailer to show its willingness for risk.
Last month the company said it will cluster four of its brands on the same level at King of Prussia Mall for the first time.
The company announced in November that it had bought out the Vetri Family group of restaurants, which includes Pizzeria Vetri.
Urban’s director of investor relations, Oona McCullough, said the company plans to have the restaurant chain next to its apparel stores to extend the shopper’s stay and get a larger share of wallet from shopping and eating.
This will be the case at King of Prussia Mall, where one wall of the Urban Outfitters store is being knocked down to make room for the pizza restaurant.
David McCreight, president of Urban Outfitters Inc. and CEO of Anthropologie Group, said the company is responding to customer demand by rolling out bigger stores.
The first pair of larger Anthropologie stores recently opened in Portland, Ore., and in Newport Beach, Calif., and he said they received very enthusiastic responses. The stores have a full-service shoe salon, which has been a hit.
“We believe we are moving in the right direction,” McCreight said during Wednesday’s conference call. “We have a strong strategic growth plan to meet consumers’ changing needs.
Customers “are shopping across multiple product categories, spending a longer time shopping in store, and traveling a greater distance to expanded locations,” he said.
McCreight said that online and brick-and-mortar sales can coexist.
“There’s room for bricks and clicks,” he said. “We can make it work.”
Urban Outfitters stock closed Wednesday at $24.59, down $0.85 or 3.34 percent
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