Urban Outfitters Paces Growth

PHILADELPHIA-Fueled by an 18%-jump in the combined comp-store sales of its three store brands, an 85%-spike in direct-to-consumer sales, and a 58%-gain in wholesale sales to other retailers in the third-quarter alone, Urban Outfitters Inc. plots a restrained course for expansion. “Urban Outfitters is doing something different,” said Dana Telsey, retail analyst and a senior managing director at Bear Stearns, during a recent meeting of the Urban Land Institute. She called the company’s namesake Urban Outfitters units a “must have” store and praised its mix of home goods and apparel.

The phrase “something different” precisely describes the niche the locally based retailer plans to continue to occupy as it steps up expansion plans for its Urban Outfitters, Anthropologie and Free People brands. CFO John Kyees is quoted as saying, “Big is the enemy of cool.” With that in mind, the company plans to grow, but not too fast, and never too big.

A company spokesperson tells GSR the company plans to expand the number of stores, excluding Free People, by about 20% a year, with an ultimate goal of 450 in the US and abroad. According to a report by Jeff Black of Lehman Brothers, of those, about 250 will be Anthropologie units, and from 150 to 200 will be Urban Outfitters stores.