News

Retail Top 100 2012, No. 75: Urban Outfitters

June 5, 2012

Urban Outfitters shares slid 27 percent in 2011, the year's biggest drop among U.S. specialty apparel retailers except for Aeropostale, costing the retailer its spot on the Nasdaq 100 Index. Net income also dropped for the past four quarters, prompting the chain to boost discounts to clear slow-moving inventory. Oppenheimer & Co. analyst Pamela Quintiliano blames "bizarre" and "lackluster" fashion selections for the retailer's woes. It didn't help matters when the Philadelphia-based Urban was served with a cease-and-desist order from the Navajo Nation in June 2011 in response to a line of products emblazoned with bold geometric designs reminiscent of Southwestern Native American motifs. The trouble started when Urban Outfitters described the items as Navajo. Under the terms of the Federal Indian Arts and Crafts Act of 1990 and the Federal Trade Commission Act, it is prohibited to falsely claim, or even imply, that a product is Native American-made if it is not.

Download the complete Top 100.