Back in the day, Urban Outfitters was the go-to-store for alternative apparel. It helped usher in the vintage tee comeback, the rise of the skinny jean and the popularity of kitschy accessories like the hamburger phone. Now, analysts are wondering if the company is out of sync with current fashion trends as the brand, which once put the “hip” in “hipster,” struggles to maintain its identity amid declining sales and the recent exit of its president.
Reports surfaced last month that the clothing line was in trouble when stocks of Urban Outfitters Inc. plunged nearly 17 per cent. It was the second straight disappointing quarter for the retailer, which blamed its flopped earnings on “fashion missteps,” among other things. Part of the problem seems to be that UO just doesn’t know what it stands for anymore. One analyst, Jennifer Black, suggested it was lacking "a clear point of view." The identity crisis certainly hasn’t been helped by the fact that UO’s president, Stephen Murray, is leaving the company to pursue another job in London.
So what does the recent turmoil mean for UO’s future in Toronto? When asked to comment about the retailer’s recent events, a spokeswoman told us that the company would “have to decline to comment at this time.”
No UO stores have closed in Toronto as of yet, but as the hipsters grow up and start choosing khakis over skinny jeans, we won’t be surprised if UO starts to go the way of that other alternative chain, American Apparel.