Digital Channel Is Key To Urban Outfitters’ Growth
The digital channel remains a key growth driver for Urban Outfitters - posting double-digit sales growth across Anthropologie and Free People brands in Q3. Although the channel didn’t deliver double-digit comp growth for the Urban Outfitters brand, it was responsible for a bulk of the sales in Q3, as store comps were negative with the brand reporting a reduction in store traffic over the period.With overall consumer sentiment remaining favorable and wage rates increasing, we expect the company to make significant marketing investments to support digital channel sales growth going forward. This should help the digital channel drive strong revenue growth for Urban Outfitters in the future.
Anthropologie Is Urban Outfitters’ Most Valuable Brand
Anthropologie is Urban Outfitters’ most valuable brand-accounting for nearly 40% of the company’s revenues. Anthropologie Group delivered a positive 4% retail segment comp in Q3 2019, driven by positive comps in women's apparel and continue strength in both accessories and home.Moreover, Accessories continued to outperform, delivering its ninth consecutive quarter of positive comps. Higher full-price comps coupled with fewer category promotions and disciplined expense management resulted in a solid quarter for the brand on both the top and bottom lines.With the holiday season approaching, Urban Outfitters depends heavily on its Anthropologie brand to deliver steady growth.