Urban Outfitters (urbn) Stock Research
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Company Description: Urban Outfitters, Inc., founded in 1970, is a worldwide retailer that develops, sells, and markets fashion apparel and footwear, accessories, decorative household items and furniture, and gift items under the brand names Urban Outfitters, Anthropologie, Free People, and Terrain. As of 2008, the company operated 245 total stores in Canada, the US, and Europe, most of which fell under the Urban Outfitters and Anthropologie brands. The company primarily markets and sells its products through online channels and catalogs. Urban Outfitters also sells and distributes young womens casual apparel on a wholesale basis through approximately 1,700 department and specialty stores. Company headquarters are located in Philadelphia, Pennsylvania. Update
Discretionary Industry Analysis: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Discretionary Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Industry Sub Sector: . Urban Outfitters is a dominant industry leader due to its personnel, experience and financial strengths. Industry leaders are difficult to compete against, which decreases business and investor risks. The market is quickly expanding. This lowers the threat of direct competition and increases Urban Outfitters's profits.
Market Challenges: Opportunities: Solutions:
Urban Outfitters possesses significant barriers to entry that slows competitive threats and increases profits. Urban Outfitters's strategy is to continuously improve. This helps to fend against competitive threats and increases shareholder returns.
Strategy: Urban Outfitters has a narrow focus that serves a particular customer niche with either a unique product or with a low cost advantage over competitors. (read more). Competitive Advantages:
Complicated financial statements lower Urban Outfitters's value, because it increases the risk of fraud and lowers investor confidence.
Current Revenue Sources: Future Revenue Sources: