Anthropologie by Urban Outfitters Targets Affluent Women with Lifestyle Store Designs
Urban Outfitters (NYSE:URBN) is a specialty retailer that competes with players like Gap (NYSE:GPS), American Eagle (NYSE:AEO) and Abercrombie & Fitch (NYSE:ANF). The company also competes with players like AnnTaylor (NYSE:ANN) through its Anthropologie brand which offers women’s casual apparel and accessories, home furnishings and a diverse array of gifts and decorative items. The Anthropologie stores contribute around 28% to the $40 Trefis price estimate for Urban Outfitters’ stock.
Anthropologie Appeals to Affluent Women
Anthropologie’s ideal demographic is affluent, settled-down career women in their 30s and 40s, with an average family income of $200,000 a year. The brand sells its products at premium prices points, for example, $250 sundresses, $400 shoes, $700 end tables.
- Here’s Why Urban Outfitters’ Stock Slumped 10%
- Up 15% This Year, Will Urban Outfitters Stock Rally Further After Q2 Results?
- Rising 15% This Year, Will Urban Outfitters’ Strong Run Continue Following Q1 Results?
- Up 52% YTD, Where Is Urban Outfitters Stock Headed?
- Urban Outfitters Stock To Likely See Little Movement Post Q2
- Urban Outfitters’ Stock To Likely See Little Movement Past Q1
The company tries to sell a lifestyle to its customers by creating a unique store environment. Anthropologie stores are carefully planned to play on the senses. For example, some stores feature French music and aromatic candles.
The stores do not focus on one category of goods, but on disparate merchandise that’s centered around a theme. Anthropologie’s buyers travel the globe for interesting, relevant and unusual items for its core customer.
Anthropologie Stores Have High Revenue per Square Foot
Historically, the revenue per square foot for Anthropologie stores has been one of the highest in the industry. Even during the recent economic downturn, leveraging its loyal customer base, the brand was able to keep its revenue per square foot around the $750 mark. Anthropologie is focused on increasing sales from its current store base rather than growing stores count significantly. This helps to keep revenue per square foot high and avoids cannibalization that can occur with over expansion.
In the first quarter of fiscal 2010, Anthropologie stores reported strong results with comparable store sales increasing by 22% compared to the same quarter in fiscal 2009. With the economy recovering and consumer spending picking up, we expect the revenue per square foot for Anthropologie stores to increase gradually towards the $900 mark by the end of our forecast period. You can modify our forecast above to see the impact of higher Anthropologie revenue per square foot on Urban Outfitters’ stock price.