Is Urban Outfitters a Buy?
Apparel chains have had it particularly hard in this tough retail climate, but Urban Outfitters (NASDAQ: URBN) has seen significant momentum in its digital channels, which has helped its sales over the past few years. Teens continue to flock to the company's web site, and its Anthropologie and Free People brands in particular are excelling in the marketplace.
However, the company faces some serious threats, most notably weakness in its namesake Urban Outfitters brand. The retail climate, and specifically how it's impacting department stores, has been hurting the company's wholesale business, and the migration away from mall stores is affecting bricks-and-mortar sales. Is the company's digital strength enough to outweigh these challenges?
Urban Outfitters has always been about customer experience, even before that became a retail catchphrase. if you visit one of its stores, you'll see carefully planned decorative details designed to resonate with the customer base. You'll find this setup in all of the company brand stores -- Urban Outfitters as well as Anthropologie and Free People. Each store tells a narrative and changes its displays frequently to keep telling the story. There are three Urban Outfitters concept stores that incorporate other artistic elements into the shopping process, creating a complete customer experience.
Source Fool.com
