Urban Outfitters

Urban Outfitters

Type	Public
Traded as	NASDAQ: URBN S&P 500 Component
Industry	Retail
Founded	1970
Headquarters	Philadelphia, Pennsylvania, USA
Number of locations	401 (May 2012)[1]
Key people	Chairman: Richard Hayne Founders: Richard Hayne Scott Belair and Gabriel Tham-Morrobel
Products	Clothing, footwear, accessories, housewares
Revenue	US$1.83 Billion (FY 2009)[2]
Operating income	US$311 Million (FY 2009)[2]
Net income	US$199 Million (FY 2009)[2]
Total assets	US$1.33 Billion (FY 2009) [3]
Total equity	US$1.05 Billion (FY 2009)[3]
Employees	25,000 (2011) Including outside of US.
Website	www.urbanoutfitters.com

Urban Outfitters store in Pasadena, California

Urban Outfitters, Inc. is a publicly traded American company that owns and operates over 400 retail locations across five retail brands: Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN.

Urban Outfitters originated as Free People ^[4] in 1972 in Philadelphia, Pennsylvania, focusing on "funky" fashion and household products. Shortly thereafter the owner and now Chairman, Richard Hayne, changed the name to Urban Outfitters. The product line has evolved from vintage, bohemian, retro, hipster, ironically humorous, kitschy apparel and furniture to include luxury brands and several designer collaborations.

Headquartered at the Philadelphia Navy Yard, the Urban Outfitters namesake brand operates more than 217 stores (with 37 international Stores and 180 in the US and Canada) locations in the United States, Canada, the Republic of Ireland, Denmark, Sweden, Germany, Belgium, the Netherlands, and the United Kingdom.

Customer base and merchandise

Urban Outfitters store in San Francisco, California

Urban Outfitters SoHo location in New York City

Urban Outfitters has been described as sexy, hip, stylish, kitschy, catlike and bizarre merchandise, for example, T-shirts emblazoned with the words "Jive Turkey" or "Atari".^[5] They are known for catering to "hipster" culture and fashion, which incorporates an influence from past decades. According to their website, Urban Outfitters' "established ability to understand our customers and connect with them on an emotional level is the reason for our success." The site says that "the reason for this success is that our brands... are both compelling and distinct. Each brand chooses a particular customer segment, and once chosen, sets out to create sustainable points of distinction with that segment" and that "the emphasis is on creativity. Our goal is to offer a product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy." ^[6]

Urban Outfitters seeks to create "a differential shopping experience, which creates an emotional bond with the 18 to 30 year old target customer we serve."^[7] In 2011, it agreed to sell limited editions of Polaroid ONE600 instant cameras and Type 779 instant film in partnership with the Austrian entrepreneur Florian Kaps, who acquired the rights to manufacture 700 copies of the defunct product.^[8] In January 2013, it hired the Abraham & Roetzel lobbying firm, led by former Republican Sen. Spencer Abraham, to advocate on its behalf in Washington, D.C., regarding retail industry policy.^[9]

Awards

In 2007 Urban Outfitters received the National Preservation Honor Award from the National Trust for Historic Preservation for the Urban Outfitters Corporate Office Campus located on the Philadelphia Naval Shipyard.^[10] For the same campus, Urban Outfitters received the 2007 Global Award for Excellence from the Urban Land Institute.^[11] In March 2008, to introduce its new Terrain brand, the company entered the Philadelphia Flower Show and won the Alfred M. Campbell Award, the Conservation Award, People’s Choice Award and Best in Show.^[12]

Product controversies

Urban Outfitters' products have been the subject of multiple controversies, particularly concerning religious and ethnic issues.

• In 2003, the company released a Monopoly parody called Ghettopoly. The game was criticized as racist by a local chapter of the NAACP^[13] and black clergy, among others.^[14] The creator of the game, David Chang, maintained the games are "a medium to bring together in laughter," adding, "If we can't laugh at ourselves... we'll continue to live in blame and bitterness."^[14]
• Also in 2003, a T-shirt released with the phrase "Everyone Loves a Jewish Girl" surrounded by dollar signs was condemned,^[15] though the Anti-Defamation League welcomed the decision to discontinue the shirts, saying that it hoped "that this experience, combined with another recent controversy surrounding an Urban Outfitters product that reinforced stereotypes, has served to sensitize the company to the sensibilities of its customer base and all ethnic groups."^[16] The ADL later expressed "outrage and disgust" at other incidents of insensitivity.^[17]
• The following year, in 2004, Jesus Dress Up, a game created by artist Normal Bob Smith, drew additional critical response.^[18][19] The company allegedly received feedback from an estimated 250,000 emails.^[20] Urban Outfitters noted that the magnets, which had been their sixth most popular Christmas toy,^[21] were not intended to offend, but rather appeal to their customers' diversity. Urban Outfitters no longer markets the game.^[22]
• In 2006, the retailer was criticized ^[23] for offering sparkly handgun-shaped Christmas ornaments in its hometown of Philadelphia, a city that had seen over 1,700 shootings and over 300 gun-related murders for the year.^[24] After the murder of officer Charles Cassidy, the company announced on November 15, 2007 that it would no longer sell the gun-shaped ornament.^[25]
• In 2007, complaints by Jewish groups over the company sales of keffiyehs (which had been marketed as "antiwar" scarves)^[26] led Urban Outfitters to stop carrying that item.^[27] Urban Outfitters issued a statement, "Due to the sensitive nature of this item, we will no longer offer it for sale. We apologize if we offended anyone, this was by no means our intention."^[26]
• In May 2008, after concern in the Jewish community, Urban Outfitters discontinued a T-shirt that featured a Palestinian child holding an AK-47 over the word "Victimized". According to a company representative, "[W]e do not buy items to provoke controversy or to intentionally offend. We have pulled this item in all of our locations and will no longer be selling it online either."^[28]
• In May 2010, The Village Voice published an article comparing various local Brooklyn artists merchandise to products sold later by Urban Outfitters, claiming they have been stealing people's work and designs.^[29]
• In June 2010, the company was criticized for having made a controversial T-shirt saying "Eat Less" over the stomach. Some people considered it as insensitive to people struggling with anorexia and other eating disorders.^[30] The tee-shirt was eventually pulled from the website but it was still sold in stores.^[31]
• In May 2011, Stephanie "Stevie" Koerner, a designer who owns an online store on Etsy, claimed that Urban Outfitters' "I Heart Destination" necklaces were stolen from her "United World Of Love", which both featured metal chain necklaces of various states with heart shaped holes punched in.^[32] Blogger April Winchell investigated and discovered that the necklaces featured a common design which a number of other artists, both on and outside of Etsy, had been selling for at least a year prior to Koerner's first sale. Additionally, Winchell drew attention to a commenter's discovery of another instance in which Koerner had claimed credit for a design that was not originally hers.^[33] Nevertheless, Urban Outfitters removed the product from their online store.^[34]
• In 2011, the Navajo Nation sent a cease-and-desist letter to Urban Outfitters, demanding that the company stop using the term "Navajo" for a line of products that include underwear and a liquor flask. The tribe holds at least 10 trademarks on their name and alleges the company of trademark violation and criticism of the product.^[35] On October 19, 2011, Urban Outfitters removed the word "Navajo" from product names on its website.^[36]
• In 2012, many in the Irish-American community were upset and threatened to boycott Urban Outfitters over St. Patrick's Day t-shirts, which monolithically depicted Irish and Irish-Americans as drunkards.^[37]
• In 2012, several popular LGBT news blogs criticized the company's choice to feature a transphobic greeting card. The card has since been removed from the website's catalog. The company did not issue any public statement regarding the controversy.^[38]
• In April 2012, the Anti-Defamation League condemned Urban Outfitters for selling a tee-shirt with a six-pointed star design, which the ADL claims strongly resembled the star Jews in Nazi Germany were made to wear during the Holocaust.^[39] The Danish brand, Wood Wood, that makes the tee shirt is also corporate partners with Adidas and Converse. The shirt no longer features the star.^[40]
• In September 2012, president of the Human Rights Foundation Thor Halvorssen published an open letter to Urban Outfitters urging the company to cease sales of clothing featuring Che Guevara. Halvorssen claims the clothing, often featuring the word "revolución" romanticizes "a brutal tyrant who suppressed individual freedom in Cuba and murdered those who challenged his worldview."^[41][42] The merchandise has since been removed from stores.^[43]
• In September 2013, Urban Outfitters "Standard Cloth Patch" vest featured U.S. military patches. One of the patches was the scroll used by the 75th Infantry Battalion also known as the "Rangers." Rangers and other veterans objected as the Ranger Scroll is only awarded to those currently serving in the 75th Infantry Battalion.^[44]
• In February 2014, Urban Outfitters pulled a shirt that featured the word "Depression" in a variety of sizes across the entire shirt. Many people used social media to express their feelings that it was an insensitive design.^[45]

Labor issues

On November 27, 2009, the firm drew the attention of the Swedish press for denying collective bargaining rights to employees at their Stockholm store by making all 38 workers redundant and re-hiring them through employment agency Academic Work.^[46][47] In response to the move, ombudsman Jimmy Ekman called for tougher laws to prevent other firms denying collective bargaining rights in this way.^[48]

Operationa and Restatement

On March 15, 2001, the company reclassified shipping and handling revenue into net sales.^[49] On January 23, 2014, Wendy Wurtzburger, who "was instrumental in developing Leifsdottir, a brand that Anthropologie sold in select units and wholesaled to Bergdorf Goodman, Saks Fifth Avenue, Neiman Marcus and Nordstrom", left Urban Outfitters.^[50] In April 2011, the company decided to sell Liefsdottir through its own company.^[50]

References

External links

• Official website
• Urban Outfitters on Twitter}
• Navajo Nation Sues Urban Outfitters for Alleged Trademark Discrimination