Urban Outfitters, Inc. (URBN), Amazon.com, Inc. (AMZN): This Company’s Returns Are the Worst

If Urban wants to shirk the strife of widespread customer returns, it has a couple of possible options. First, it could go the way of Target Corporation (NYSE:TGT) and offer a variety of lower-priced, basic clothing pieces along with statement, designer offerings. For its primary demographic, however, this could be the retailer equivalent of Maker’s Mark watering down its booze, and could lead to a similar outrage.

A second option is to place more emphasis on non-clothing products the company already sells, like books, furniture, and novelty items. These types of items are less likely to be returned than an expensive statement dress that doesn’t fit right, and could boost Urban’s already healthy overall revenue.

Fashionably Foolish
By many counts, Urban Outfitters, Inc. (NASDAQ:URBN) has been performing very well lately. To fix a problematic metric, it may need to diversify its inventory slightly, but other than that, its financials are particularly impressive considering the volatility of its audience. We’ll see how long Urban can make vintage, “yard-sale-style” clothes fashionable, but for the time being, they’re not going anywhere anytime soon.

The article This Company’s Returns Are the Worst originally appeared on Fool.com and is written by  Caroline Bennett.

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.

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