Urban Outfitters Inc. (
) is a leading specialty retail company that operates under
the Urban Outfitters, Anthropologie, Free People and Terrain
brands, selling fashion apparel, accessories and home goods. It
competes with J.Crew Group (
Abercrombie & Fitch
) in this market.
Urban Outfitters and Anthropologie stores each constitute about
28-29% of our $39.72 price estimate for Urban Outfitters stock,
with internet and catalog orders adding an incremental
24%. Our price estimate is roughly 5% ahead of market
See our full analysis and $39.72 price estimate
for Urban Outfitters
Bridal Line Adds a New Product Niche
Here we discuss the outlook for the company's new bridal line.
The company launched its new bridal line called BHLDN (short for
'Beholden') on Valentine's Day this year. In addition to wedding
gowns, the collection includes bridesmaid
dresses, accessories, footwear and lingerie. The line targets
a demographic of slighly more mature and sophisticated brides,
but still maintains its target in the below 30 age range.
Urban Outfitters is currently selling the products online and
plans to open its first free-standing store in August. Event
dresses are expected to be priced from $200 to $600 and bridal
gowns at $1,000 to $4,000.
Going forward, the company expects to open two to three BHLDN
stores, each 3,000 to 4,000 square feet in size, in 2012. The
company could be aiming to increase the store count to between 50
and 100 in the long-run, according to Women's Wear Daily.
New Line Seems to Fit
This new line seems to suit Urban Outfitters' recent initiative
of exploring new niches and establishing itself within these
markets. Over the past few years, the company has added the Terrain
and Leifsdottir brands to complement its core Urban Outfitters and
Its Terrain stores, established in 2008, offer lifestyle
home and garden products combined with antiques, live plants,
flowers, wellness products and accessories. The brand is designed
to appeal to men and women interested in a creative, sophisticated
outdoor living and gardening experience. Terrain also offers a
variety of landscape and design service solutions. The Leifsdottir
brand, established in 2009, develops sophisticated women's
contemporary apparel and is sold through Anthropologie stores as
well as luxury department stores and select specialty stores across
the United States.