Do Urban Outfitters, Inc. (URBN)’s Exec Comments Matter to Its Stock?

True, Urban’s more “mature” brand, Anthropologie, does target a slightly older demographic, but that brand only accounted for 40% of last year’s revenue, as opposed to Urban’s 47%. Urban needs both brands to excel constantly in order not to fall into obscurity, and that could be a tall order to fill.

The company can’t ensure a competitive moat, popularity, or even relevance within the next decade. All it can do is continue its exhaustive research of pop culture, and perhaps recruit a new board as its current one grows older and presumably more out of touch. However, even that won’t guarantee longevity.

Urban Outfitters, Inc. (NASDAQ:URBN) has made billions of dollars off a highly volatile audience. There’s no guarantee their attentions won’t soon veer elsewhere, and long-term investors may not want to put their money into such an uncertain playing field.

The article Do Urban Outfitters’ Exec Comments Matter to Its Stock? originally appeared on Fool.com.

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

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