As Urban Outfitters Inc. keeps its sights on doubling sales to $6 billion by 2020, category expansion in beauty and accessories will be a part of the growth strategy for the company’s Anthropologie brand, according to Francis John Conforti, chief financial officer.
Conforti was speaking at the Piper Jaffray Consumer Conference today when he told investors that reaching $6 billion in sales “is very achievable. We’re still extremely excited about the opportunity that exists there,” he said adding that “category expansion is an important part of the growth opportunity that sits in front of us.”
Shares of the company were down 3 percent to $35 in midday trading following a quarterly statement. “Thus far during the second quarter of fiscal 2016, comparable retail segment net sales are mid single-digit positive,” the filing stated.
Conforti cited the growth of home goods at Anthropologie as a success story. The category was essentially a sleeper until management focused on growing it, he said.
Focus groups with consumers helped the retailer see untapped growth opportunities with home goods at the brand. As a result, the company expanded the assortment, built its home goods and home office merchandise team, and launched “the marketing initiatives, and we’re really starting to see that payoff,” he said. “The results have been great.”
The home category has double-digit same-store sales growth, Conforti said, “with a very, very low markdown rate. And, more importantly, the feedback from the customer has been very strong.”
Up next for Anthropologie is category expansion for beauty lines and accessories, where there “is a much bigger opportunity for us,” the cfo told investors.