by Alexandra Steigrad
Posted Monday May 16, 2011
From WWD.COM
Urban Outfitters Inc. said Monday that its first-quarter net income slid 27.1 percent, as it was forced to aggressively markdown “slow moving” women’s apparel inventory.
The Philadelphia-based retailer, known for its Urban Outfitters, Anthropologie and Free People brands, recorded a profit of $38.6 million, or 23 cents a diluted share, in the quarter ended April 30. This compared with year-ago net income of $53 million, or 31 cents a diluted share.
Net sales for the period rose 9.2 percent to $524 million, from $480 million in 2010.
Analysts anticipated earnings per share of 24 cents on sales of $522.1 million, Yahoo said.
Steep markdowns pushed gross margin down to 36.9 percent of sales versus 41.8 percent, a year earlier. Quarterly comparable-store sales fell 5 percent, as comp retail sales increased 30 percent and 1 percent at Free People and Urban Outfitters, respectively, and fell 6 percent at Anthropologie.
On a company conference call, chief executive officer Glen Senk called the quarter a “disappointment” and vowed to improve women’s apparel and accessories at the company’s namesake chain and at Anthropologie.
“We are working with our merchants to feel emboldened again,” he said, explaining that despite the depressed consumer environment, it’s not the right time for a “cautious approach” when making purchases.
Hampered by recent fashion missteps, the retailer, which plans to open 50 to 55 stores this year, expects markdowns in the second quarter to be comparable to those of the first quarter, noting that inventory productivity “continues to lag expectations.”
The company operates 178 Urban Outfitters stores, 156 Anthropologie stores, 47 Free People locations and one Terrain garden center.
Showing posts with label Anthropologie. Show all posts
Showing posts with label Anthropologie. Show all posts
Tuesday, May 17, 2011
Friday, April 29, 2011
Urban Outfitters Announces Leifsdottir to be Sold Exclusively at Anthropologie
Today Urban Outfitters announced that the Leifsdottir brand will be sold exclusively at Anthropologie stores and through its direct-to-consumer business, and will discontinue wholesale distribution with the conclusion of spring deliveries. Johanna Uurasjarvi, Creative Director for Leifsdottir, will return to the Anthropologie brand as the Executive Creative Director of Anthropologie Product Design. "We believe this change gives us the best opportunity to maximize the brand equity of the Leifsdottir label, and we are excited to welcome Johanna back to the Anthropologie business," said Glen T. Senk, Chief Executive Officer. The Company expects to record one-time costs of approximately $2.7 million in the first quarter of the current fiscal year for the disposal of certain Leifsdottir assets, disposition of inventory and other related costs.
Urban Outfitters also announced that quarter-to-date comparable retail segment sales through the Easter holiday weekend were low single-digit negative, consistent with the update provided in its Annual Report on Form 10-K filed on April 1, 2011.
Urban Outfitters, Inc. is an innovative specialty retail company that offers a variety of lifestyle merchandise to highly defined customer niches through 176 Urban Outfitters stores in the United States, Canada, and Europe, catalogs and four web sites; 153 Anthropologie stores in the United States, Canada and Europe, catalogs and two websites; Free People wholesale, which sells its product to approximately 1,400 specialty stores and select department stores; 42 Free People stores, catalogs and a web site; Leifsdottir wholesale, which sells its product to approximately 65 specialty stores and select department stores and through a web site; 1 Terrain garden center and web site; and BHLDN, which sells its product through a web site as of January 31, 2011.
Wednesday, April 6, 2011
Why Are Fitting Rooms So Awful?
Stores Try To Beautify Spaces, 'Seduce' Shoppers to Buy More With Better Lighting, Mirrors, Design.
Wall Street Journal
By Elizabeth Holmes and Ray A. Smith
You spot a gorgeous dress on a hanger and, hopes high, make your way to the fitting room.
It's downhill from there. The door doesn't fully shut, the lighting makes you look ill and the frock looks frumpy in a mirror fit for a fun house.
The retail dressing room can be a total sales killer.
Now stores are making a big push to transform the dingy fitting room into a more flattering space. It's part of an ongoing struggle by retailers to coax consumers to spend more. Having saturated the market with stores over the last decade, they can't expand to increase sales. Instead, companies are trying to squeeze more profits out of their current fleet.
Customers who try on clothes in fitting rooms have a conversion rate—meaning they ultimately buy something they tried on—of 67%, according to retail consultant Envision Retail Ltd., of Surrey, England, based on observations of more than 8,000 shoppers. Customers who don't use the fitting rooms have only a 10% conversion rate. Shoppers who use the fitting rooms spend a third of their in-store time there.
Aesthetically, the dressing-room makeovers are an attempt to go from bland and barren to comfortable and inviting, as if the shopper is trying on clothing in her own home. Chandeliers are cropping up in luxurious anterooms, where racks of camisoles hang waiting to smooth the unexpected bulge. Inside the fitting rooms, wallpaper and back-lit mirrors aim to flatter, not frighten.
Stores are focusing their design efforts on dressing rooms in the women's clothing sections. Men tend to buy without trying on in the store, says Paco Underhill, founding president of Envirosell, a retail behavioral research and consultancy firm, who has timed men's visits in stores.
The new design at Ann Taylor, a division of Ann Inc., is intended to replicate a shopper's walk-in closet, says Samantha Dorfman, senior vice president of store development, design and facilities. A huge chandelier and larger-than-life marketing poster fill the entrance to "seduce" customers back to the space, Ms. Dorfman says. It's an about-face from the barren, beige entrance to the fitting rooms in the current layout.
Old Navy, the bargain-priced division from Gap Inc., moved fitting rooms to the center of its new store design. The relocation came after customers referred to the old tucked-away location as the "dungeon," says Tom Wyatt, Old Navy's president. To further cater to its target customer—a time-starved, young mother—the chain added what it calls "quick change" areas. The half-circle spaces are enclosed by a curtain.
Noticing that many women like to go into a fitting room together, Anthropologie, a division of Urban Outfitters Inc., makes sure each room can accommodate more than one person. "They consider it a little bit of a party," says Co-President Wendy B. McDevitt.
For women shopping with children or a boyfriend or husband, department store chain Macy's Inc. has been gradually updating its stores to add communal waiting spots with flat-screen TVs tuned to either sports or cartoons and upholstered seating. The theory: Parking a husband, boyfriend or kids in that spot helps a shopper feel "less rushed and stressed," a Macy's spokeswoman said in an email.
Clothing stores typically allot about 20% of the square footage towards fitting rooms and storage and 80% towards displaying the merchandise, says Robin Kramer, head of Kramer Design Group, a retail branding and design firm which works with clients from Talbots to Alexander Wang. She has lobbied stores to dedicate more space to their fitting rooms. "It's the moment where you put the brand on your body and decide if that's what you want," Ms. Kramer says.
Some retailers are filling the fitting room area with merchandise. At Ann Taylor, racks and drawers in the lounge area display undergarments such as shapewear and camisoles. Its sister division, Loft, also includes a bar of belts and jewelry. Sales associates manning the fitting room are able to sell more items to a customer without leaving the space.
Lighting is a critical component. "Any woman who goes into a fitting room that has really bad lighting, you look at yourself, you look at your skin and you're completely distracted," says Anthropologie's Ms. McDevitt. "Then you lose the real reason why you were in there."
The new Ann Taylor rooms have six sources of lighting and three types of bulbs, compared to one source and type of lighting in the old design. The mixture of ceramic metal halide, compact fluorescent and low-voltage bulbs is more flattering, Ms. Dorfman says.
Bloomingdale's has installed rear-lit three-way mirrors, which allow customers to see themselves from a variety of angles. There is also a ceiling-mounted light three feet back from the mirror to eliminate shadows on the shopper's face, says Jack Hruska, executive vice president of creative services at Bloomingdale's.
Personal touches at Old Navy include labels placed over a trio of bright yellow hooks, helping shoppers organize their haul. "I love it!" and "Not for me," the signs read. Anthropologie writes shoppers' first names on the fitting room door, making it easier for sales staff to refer to them by name. That one-on-one time with a customer helps the store to engage shoppers on an intimate level, Ms. McDevitt says.
Because fitting rooms are highly trafficked areas, stores must make the design durable as well aesthetically pleasing. At Ann Taylor, the gray tones of the custom-designed floral wallpaper mask scuffs. The leather benches were chosen for the material's resistance to stains, like lipstick.
To help shoppers get the attention of salespeople, some fitting rooms at Bloomingdale's, such as those in the intimates departments, have phones. Customers are automatically connected to a sales associate to obtain another size, or ask questions regarding fit. Bloomingdale's says the phones are used frequently.
Victoria's Secret, a lingerie chain from Limited Brands Inc., is testing buttons in a small number of its fitting rooms which, when pushed, alert a sales associate via headset. The system also keeps track of how many people use the fitting rooms, how long they stay and how many times they ask for help, says Marge Laney, president of Houston-based manufacturer Alert Technologies, which installed the Victoria's Secret system.
By Elizabeth Holmes and Ray A. Smith
You spot a gorgeous dress on a hanger and, hopes high, make your way to the fitting room.
It's downhill from there. The door doesn't fully shut, the lighting makes you look ill and the frock looks frumpy in a mirror fit for a fun house.
The retail dressing room can be a total sales killer.
Now stores are making a big push to transform the dingy fitting room into a more flattering space. It's part of an ongoing struggle by retailers to coax consumers to spend more. Having saturated the market with stores over the last decade, they can't expand to increase sales. Instead, companies are trying to squeeze more profits out of their current fleet.
Customers who try on clothes in fitting rooms have a conversion rate—meaning they ultimately buy something they tried on—of 67%, according to retail consultant Envision Retail Ltd., of Surrey, England, based on observations of more than 8,000 shoppers. Customers who don't use the fitting rooms have only a 10% conversion rate. Shoppers who use the fitting rooms spend a third of their in-store time there.
Aesthetically, the dressing-room makeovers are an attempt to go from bland and barren to comfortable and inviting, as if the shopper is trying on clothing in her own home. Chandeliers are cropping up in luxurious anterooms, where racks of camisoles hang waiting to smooth the unexpected bulge. Inside the fitting rooms, wallpaper and back-lit mirrors aim to flatter, not frighten.
The new design at Ann Taylor, a division of Ann Inc., is intended to replicate a shopper's walk-in closet, says Samantha Dorfman, senior vice president of store development, design and facilities. A huge chandelier and larger-than-life marketing poster fill the entrance to "seduce" customers back to the space, Ms. Dorfman says. It's an about-face from the barren, beige entrance to the fitting rooms in the current layout.
Old Navy, the bargain-priced division from Gap Inc., moved fitting rooms to the center of its new store design. The relocation came after customers referred to the old tucked-away location as the "dungeon," says Tom Wyatt, Old Navy's president. To further cater to its target customer—a time-starved, young mother—the chain added what it calls "quick change" areas. The half-circle spaces are enclosed by a curtain.
For women shopping with children or a boyfriend or husband, department store chain Macy's Inc. has been gradually updating its stores to add communal waiting spots with flat-screen TVs tuned to either sports or cartoons and upholstered seating. The theory: Parking a husband, boyfriend or kids in that spot helps a shopper feel "less rushed and stressed," a Macy's spokeswoman said in an email.
Clothing stores typically allot about 20% of the square footage towards fitting rooms and storage and 80% towards displaying the merchandise, says Robin Kramer, head of Kramer Design Group, a retail branding and design firm which works with clients from Talbots to Alexander Wang. She has lobbied stores to dedicate more space to their fitting rooms. "It's the moment where you put the brand on your body and decide if that's what you want," Ms. Kramer says.
Some retailers are filling the fitting room area with merchandise. At Ann Taylor, racks and drawers in the lounge area display undergarments such as shapewear and camisoles. Its sister division, Loft, also includes a bar of belts and jewelry. Sales associates manning the fitting room are able to sell more items to a customer without leaving the space.
The new Ann Taylor rooms have six sources of lighting and three types of bulbs, compared to one source and type of lighting in the old design. The mixture of ceramic metal halide, compact fluorescent and low-voltage bulbs is more flattering, Ms. Dorfman says.
Bloomingdale's has installed rear-lit three-way mirrors, which allow customers to see themselves from a variety of angles. There is also a ceiling-mounted light three feet back from the mirror to eliminate shadows on the shopper's face, says Jack Hruska, executive vice president of creative services at Bloomingdale's.
Personal touches at Old Navy include labels placed over a trio of bright yellow hooks, helping shoppers organize their haul. "I love it!" and "Not for me," the signs read. Anthropologie writes shoppers' first names on the fitting room door, making it easier for sales staff to refer to them by name. That one-on-one time with a customer helps the store to engage shoppers on an intimate level, Ms. McDevitt says.
Because fitting rooms are highly trafficked areas, stores must make the design durable as well aesthetically pleasing. At Ann Taylor, the gray tones of the custom-designed floral wallpaper mask scuffs. The leather benches were chosen for the material's resistance to stains, like lipstick.
To help shoppers get the attention of salespeople, some fitting rooms at Bloomingdale's, such as those in the intimates departments, have phones. Customers are automatically connected to a sales associate to obtain another size, or ask questions regarding fit. Bloomingdale's says the phones are used frequently.
Victoria's Secret, a lingerie chain from Limited Brands Inc., is testing buttons in a small number of its fitting rooms which, when pushed, alert a sales associate via headset. The system also keeps track of how many people use the fitting rooms, how long they stay and how many times they ask for help, says Marge Laney, president of Houston-based manufacturer Alert Technologies, which installed the Victoria's Secret system.
Monday, March 21, 2011
Judy Collinson Joins Anthropologie
From WWD Issue 03/21/2011
There is life after Barneys. Judy Collinson, the former top women’s merchant at Barneys New York, has become executive director of women’s apparel at Anthropologie.
“She’s just an innovative, world-class merchant with an unparalleled taste level,” said Glen T. Senk, chief executive officer of the Philadelphia-based Urban Outfitters Inc., confirming Collinson’s new job. Urban Outfitters operates Anthropologie, Free People, Urban Outfitters, Leifsdottir and Terrain.
Senk described Collinson’s role as “a little different from a traditional general merchandise manager,” explaining, “The focus is more on the product itself, so design reports into her. She is responsible for every product in the overall women’s assortment including market products and products developed by Anthropologie.” Senk added that Collinson is not handling accessories right now.
“She will be fantastic. There is a lot for her to learn. Anthropologie is a very different business from Barneys,” Senk said. “But to have somebody with decades of experience and passion is just going to be fantastic for the company and the customers. Judy is a fast learner, and at the end of the day we always try to buy product and design product that we love. We have a saying at the company, ‘We design up to the customer.’”
Collinson reports to Wendy Wurtzburger, co-president and chief merchandising officer of Anthropologie. Collinson worked at Barneys for 20 years, last serving as executive vice president and gmm until last fall when she got pushed out as part of ceo Mark Lee’s strategy of remaking the team.
Collinson’s experience and style would seem a good fit for Anthropologie, where, like Barneys, products are both designed and shopped from the markets. At Barneys, she was a force behind the development of the Barneys New York private collection, but was also an advocate for small artisans and unknown designers. Collinson quietly started working at Anthropologie last month without any announcement. Senk is looking for Urban Outfitters and Anthropologie to gain greater fashion momentum this year after a fourth quarter net income decline.
In other Anthropologie changes, Aaron Hoey was promoted to general merchandise manager of home furnishings, women’s accessories and shoes, including responsibilities for the new concept Anthropologie Accessories and Shoes stores. The first was opened in October in Chevy Chase, Md.; the second will open in Nashville on Friday, and the third will open in Suburban Square, Pa. in the third quarter. Hoey was divisional merchandise manager. Kit Lee-Perry, gmm of women’s at Anthropologie, left the company recently to join Kate Spade.
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