For a minute there, it seemed like Urban Outfitters was making headlines regularly for putting one controversial item or another on its shelves. So when the company comes out and says that it has experienced a seven percent decline in profits for the third quarter, you’d think it’s because all the bad publicity finally caught up with them.
You’d be wrong.
The CEO of Urban Outfitters, Richard Hayne, says the issue is with how messy the stores are. The stores are “needlessly overassorted and piecey, which made the shopping experience more difficult and less appealing,” he said on a call with analysts. He compares the results to those of the company’s other businesses to show where Urban Outfitters went wrong.