Urban Outfitters Inc Analysis

Topics: Market capitalization, Economics, Urban Outfitters Pages: 10 (3773 words) Published: June 3, 2011
Apparel Stores: Industry Analysis through Urban Outfitters, Inc.

The apparel store industry within the USA is a highly competitive market, consisting of number of companies that are willing to fight for their share of the market. To remain afloat in this business, corporations must be highly innovative, price-conscious, knowing the trend, and with great responses to consumer needs. Each company within this industry must be aware of the competitors’ move, trying to match every trends and benefits offered by another, in order to steal the average consumers. Market-alertness is the key to survival; each company must balance marketing strategies and customer-service, responding to consumer demands within the shortest processing time possible. This paper shall provide an analysis of the apparel store industry through Urban Outfitters, Inc. Urban Outfitters, Inc.: About the Company

Urban Outfitters, Inc.(hereinafter referred to as Urban Outfitters or the “Company” for brevity) is a company that has brought to the world brands such as Urban Outfitters, Anthropologie, Free People , Leifsdottir and Terrain.The company is selling to the US, Canada and Europe through brick and mortar stores, specialty stores, department stores as well as websites and catalogs. Further from its website, each brand has its own target market and each caters to this market by offering “an eclectic mix of merchandise in which hard and soft goods are cross merchandised; and construct unique product displays that incorporate found objects into creative selling vignettes.” Additionally, from the Company’s website, the emphasis is on creativity; it wants to create a powerful connection with its target market through the arts the merchandise convey that the customers are persuaded to buy. The Company has been in operation since 1970, selling inexpensive clothing to college and graduate school students in Pennsylvania. Free People was opened first to big success. By 1976, the name was changed to Urban Outfitters and formally incorporated. Apparel Stores as an Industry

Type of Product
Yahoo! Finance classifies Urban Outfitters as a company belonging in the Apparel Stores Industry. This industry is big, with a market capitalization of 82.5billion with 45 companies as members wherein Urban Outfitters ranks 5th. Apparel, shoes and accessories for men, women and children of all age groups are the main products of this industry. Top Apparel Stores Companies By Market Cap|

Company| Symbol| Price| Change| Market Cap| P/E|
Gap Inc.| GPS| 20.24|  0.60%| 12.53B| 11.53|
Limited Brands, Inc.| LTD| 31.86|  0.19%| 10.28B| 15.95| Nordstrom Inc.| JWN| 42.06|  0.78%| 9.22B| 18.07|
Ross Stores Inc.| ROST| 63.81|  0.45%| 7.69B| 15.06| Urban Outfitters Inc.| URBN| 32.91|  1.56%| 5.43B| 21.41| Abercrombie & Fitch Co.| ANF| 46.13|  1.56%| 4.07B| 43.98|

Cyclical or non-cyclical
Because this industry is primarily aimed for the US market, one may say that the products offered to consumers are cyclical in nature. Within the 50 states of the US, 49 states are experiencing snow or four seasons. Since clothing has to be adapted to the climate, and with 98% of the US experiencing four seasons, the clothing production can be considered cyclical. Even though the fashion catalogs cannot be exactly the same, the demand for materials and trends while making the goods must be repetitive. Breezy, cotton materials are more in demand during spring/summer while thick wools and other heavy materials are necessary for the winter. The colors may change and so may some of the styles, but the way a basic t-shirt is made is cyclical in nature. The company is not only producing clothes, but also manufacture or sells other consumer goods in the store such as stationeries, house wares and accessories. One believes these goods mention above is non-cyclical products. Number of Major Suppliers in the Industry

The apparel store...
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