Dive Brief:

• Same-store Q3 sales at Urban Outfitters’ flagship brand fell 10% in a continued free fall that has plagued the company for a while and could begin to affect profits.

• The retailer's two other brands, Anthropologie and Free People, continue to carry the weight for the company as sales at those stores continue to grow.

• Analysts say the company appears to taking steps to improve sales but that it may be taking too long to prevent dings to profits. 

Dive Insight:

Urban Outfitters is suffering from a disconnect between its prices, which are higher than fast-fashion retailers like H&M and Forever 21, and its merchandising, much of which seems aimed at the teenage shoppers who expect low prices. And while the company’s marketing, like its merchandising mix, is often proudly edgy, several offensive designs, including a tasteless bloody Kent State sweatshirt, may have gone too far.