Who doesn't love a little ambition, right, especially from a retailer like Urban Outfitters (URBN)?
Herbert Hoover, for instance, promised voters "a chicken in every pot" if he was elected. And, although this comparison we're about to make is a massive reach (stay with us!) at its Analyst Day, Urban Outfitters management outlined expansions that it said will double sales over the next five years.
Spoiler alert: It includes an Anthropologie for every living room.
Urban Outfitters, the popular clothing, accessories and "stuff" retailer, which boasts Free People in addition to its namesake and Anthropologie brands, acknowledged that it has had a rough latest 12 months, but outlined several plans going forward that will bolster the brands. Product and service expansion, enhancing the customer experience and growing distribution were at the top of the list, as noted by Stifel Financial analyst Richard Jaffe.
Noting that the company plans to revamp each of its segments, analyst Ike Boruchow of Sterne, Agee & Leach noted that the Anthro segment will cut apparel from 70% of its offerings to about 50% and refocus on home furnishings. Boruchow writes:
The plan for the home category is to make it a destination to outfit entire rooms (versus the prior focus on accent pieces and gifting), and the new registry service (soft-launched last week with a strong response from customers) aligns nicely with both the broadened home assortment and the BHLDN bridal sub-brand.
Still, Boruchow remained cautious and his caution was echoed by Jaffe:
The key theme of today's Urban Outfitters Inc. analyst day was growth. Urban Outfitters' goal is to double top-line sales by 2020 while remaining one of the most profitable companies in the sector. To achieve this, the strategy is simple; however the execution will be complex.
Looks like investors are digging Urban's style this afternoon, as shares have risen 1.6% to $37.92 at 1:04 p.m. Let’s just hope this works out better than Hoover did.
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