There’s a lot going on in fashion and retail right now, and it’s not just from the fashion trade shows in Las Vegas which will soon provide insights on where trends are headed next for SS14. But while teen retailers such as American Eagle, Abercrombie & Fitch, Aeropostale, and even Macy’s report financial difficulties in a challenging environment, Urban Outfitters, meanwhile, reported a Q2 with 25% profit increase. So where are the teens shopping? Not just Hot Topic, but also this chain, owners also of Anthropologie, Free People, BHLDN, and Terrain.
In our upcoming Fall Youth Culture Study 2013, we can see the dramatic shifts in spending patterns among 13-25-year-olds across the United States. The effects are not just within fashion and new favorite brands and retailers, but also sneaker culture, electronics and technology, entertainment, and communication.
For Urban Outfitters, for Q2 which closed on July 31, 2013, net income was up to $76.4 million, which it up from $61.3 million a year ago in the same quarter. One of the growing areas for the retail chain and brand is its direct-to-consumer business. Online is where they are really gaining ground. Unlike many teen retail chains, we have to admit that the Urban Outfitters’ blog, for example, is totally on trend with the marketplace providing not only fashion insights, but fun articles on lifestyle, music videos, interviews, contests, and special events.
As CEO Richard Haynes said, their Q2 success has to do new stores that are doing well but mainly the improved direct-to-consumer routes. In addition, Haynes said they are on the look-out for new acquisitions. This is obviously telling of retailer on a roll.