Retail giant Urban Outfitters appoints a new head honcho

In a bid to navigate the challenging retail landscape, Urban Outfitters has announced a series of leadership changes within the company.

Sheila Harrington, currently CEO of Free People Group, will be taking over as the CEO of Urban Outfitters Group, effective immediately. Harrington, who previously worked with Gap and Bloomingdales, led product development across stores, digital, and wholesale for Free People. She was instrumental in developing the visual merchandising team and growing the buying team.

In a related move, Gabrielle Conforti, the current chief merchandising officer for the Urban Outfitters brand, has been promoted to president of Urban Outfitters North America. Conforti will report directly to Harrington.

The changes come at a time when the apparel segment has been especially hard-hit due to the closure of nonessential retail and changing consumer shopping habits because of COVID-19. Urban Outfitters reported better-than-expected third-quarter results last fall, but the company's net sales for the holiday season (December 31, 2020) decreased 8.4% year over year. Total company net sales for the eleven months ended Dec. 31 decreased 14.3% year over year.

Retail comparable sales for the company overall fell 9%, with the Free People brand seeing a 1% increase in sales, while Urban Outfitters and Anthropologie reported decreases of 8% and 12% respectively for the last two months of the year.

The coronavirus pandemic led to temporary store closures and lower store productivity. However, Urban Outfitters Group CEO Trish Donnelly, who is leaving the company effective January 31, had previously stated that the Free People brand had the potential to become a billion-dollar brand and they planned to invest in its growth aggressively.

Emma Wisden will continue as the managing director of Urban Outfitters Europe and will also lead the Urban Outfitters brand wholesale business. She will report directly to Harrington.

The company also announced the launch of a new Free People Movement activewear line, which opened its first stand-alone store.

Many companies in the apparel industry went bankrupt in the past year, including Lucky Brand, Brooks Brothers, Lord & Taylor, Ascena, J. Crew, and Neiman Marcus. Urban Outfitters, despite the challenges, continues to adapt and evolve, with these leadership changes marking a new chapter in the company's journey.