PHILADELPHIA — Richard Hayne believes Urban Outfitters Inc. is just getting started on the international front.
“There’s an extraordinary opportunity there,” the firm’s chairman, president and chief executive officer told shareholders at its annual meeting at corporate headquarters here Tuesday. “North America accounts for 90 percent of sales and Europe, 9 percent. International sales, including direct-to-consumer, grew 23 percent [last year].
“We have extraordinary opportunity to expand offerings worldwide,” he added.
The retailer also plans to add product categories, product extensions and new sizes and colors. Hayne said Anthropologie could do petites and electronics in the home area.
“If we do acquire a new concept, we want that concept to fit nicely with the current concepts,” he said.
Hayne expects the globalization trend to continue and accelerate as localization grows at the same time. “We continue to add stores geographically,” he said. “We expect to open Free People and Urban Outfitters stores in Asia in the next two years.
“Today, Web penetration is 85 percent in North America but, in the next five years, it will be almost 20 percent outside the U.S.”
Brick-and-mortar constitutes 74 percent of the company’s sales, or $1.84 billion.
Hayne said, “Success is due to increased product assortment, a focus on Web marketing or paid search and social media like Pinterest that drive traffic. Social media efforts have been profound. The Free People blog has 648,000 followers.”
Hayne addressed about 75 people in the industrial minimalist meeting room that has the original shipping hoists and hooks dangling from the ceiling.
He discussed some of 2012’s financial highlights, which included $2.5 billion in sales, a 9 percent increase over fiscal 2011. Operating profits were $284.7 million, with $500 million in direct-to-consumer sales, a 15 percent hike. There were 57 new stores opened during the fiscal year, including 10 outside the U.S.
Hayne said the third quarter was the weakest, while the fourth quarter showed an increase due to promotions and markdowns.
During the fiscal year, Anthropologie opened its first store in Scotland on upscale George Street in Edinburgh; Urban Outfitters unveiled units in Frankfurt and Berlin; a BHLDN bridal location opened in Houston, and a prime space for Free People was found in Center City, Philadelphia, next to Urban Outfitters. Free People opened its biggest store, a 7,000-square-foot unit, in New York’s Rockefeller Center and will begin shipping the intimates collection Intimately Free to more stores and wholesale accounts.
Urban grew its wholesale revenues by 11 percent in the 2012 fiscal year.
Five proposals were put to shareholders for a vote. Two involved the election of directors, Hayne and Harry S. Cherken Jr. There was a proposal to ratify the auditors Deloitte & Touche. Shareholder proposals included diversifying Urban’s board and ensuring women and minority candidates are in the nominating pool. A proposition involved changing the standard with which directors are chosen, from a plurality vote to a majority vote. The last proposal suggested directors stand for election once a year. The votes will be counted this week.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye