Is Urban Outfitters Made in China?

Despite the controversy surrounding the Chinese garment industry, Urban Outfitters is far from the only brand to withdraw from the country. With a $200 billion industry, Chinese brands are facing increasing competition as local businesses expand and online-only sellers emerge. Western brands are finding it harder than ever to compete with Chinese fast-fashion brands. Here are some of the things you should know. And don't forget to share your stories with the world!

Xinjiang Uighur Autonomous Region #

Several human rights groups claim that China's garments are manufactured using forced labor by the Uyghur and Turkic Muslim populations. Over eighty percent of China's cotton is sourced from the region. According to the Human Rights Watch, the practices of some of these companies have contributed to widespread abuses against Turkic Muslims and Uighurs. While China is the world's largest cotton producer, eighty percent of it comes from Xinjiang.

Xinjiang Uighur forced labor #

Despite the repercussions of the re-education camps and mass arrests, the Chinese government defends the practices of companies that use Xinjiang Uighur forced labour in its factories. According to satellite imagery, Xinjiang is growing exponentially, and the government has defended these structures as vocational training centers. Workers are paid little or nothing, and some earn barely above minimum wage. The camps are so populated that Chinese authorities have to hire dozens of people from the region just to meet their requirements.

URBN's commitment to animal-derived products #

The recent announcement by URBN, the company that owns Urban Outfitters, has caused a stir in the fashion industry. URBN, or Urban Retail Network, has more than 200 stores in North America, Canada, and Europe. As one of the largest retailers in North America, the brand is widely recognized for its commitment to ethical practices. Nevertheless, the company's recent decision to sell animal-derived products has caused a backlash in some quarters.

Its commitment to circular fashion #

A major retailer, Urban Outfitters has made a significant commitment to circular fashion by developing partnerships with a number of nonprofit organizations. Their commitment to circular fashion has extended to their retail space, which is made up of converted industrial buildings in the city's Navy Yard. The company's commitment to circular fashion is demonstrated by the fact that it is using recycled materials from its sample and knitting rooms and has designed the interior of the Herald Square retail space to reflect the juxtaposition of vintage and modern materials.

Its price estimate #

The price estimate for Urban Outfitters is based on the company's expected EPS of $3.49 in fiscal 2022 and a PE ratio of 8.8x, implying a premium of 5% over the current market price. Given the company's high profit margins, this valuation seems to be reasonable. It's possible that the company will be able to break through the $40 mark before the end of its current fiscal year.


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