Dive Brief:
- Target will sell Free People’s intimates brand — Intimately FP — in select stores and online, according to a Monday announcement.
- The 42-style assortment includes exclusive options at Target, with all offerings priced under $48. It features bralettes, underwear and other intimates options with seasonal colorways.
- The announcement follows Target’s financial meeting Tuesday, which included details of the retailer’s 2026 merchandising plans with the goal of reversing sales declines.
Dive Insight:
Free People — part of the Urban Outfitters Inc. portfolio of brands — is expanding its distribution with the new Target partnership.
Urban Outfitters Inc.’s wholesale segment saw fourth quarter net sales increase 9.1% year over year, “driven by a 10.2% increase in Free People wholesale sales due to an increase in sales to specialty customers,” per a company press release in February.
Free People’s athletics brand, FP Movement, had total revenue growth of 29% during the period, Urban Outfitters Inc. co-President and COO Frank Conforti said in prepared remarks on an earnings call.
“Given the consistent execution within the core collection assortment and the ongoing growth of FP Movement, we believe the Retail segment is well-positioned to deliver positive ‘comps’ with mid-teens operating profit rate for FY 2027,” Conforti said regarding Free People. “Additionally, we believe the Wholesale segment can deliver healthy growth with a consistently strong profit rate for fiscal 2027.”
For Target, the Intimately FP debut is part of its larger turnaround strategy under CEO Michael Fiddelke.
“This intimates collection gives guests, especially Gen Z, more ways to express their personal style with pieces that feel fresh and flattering,” Gena Fox, senior vice president of apparel and accessories at Target, said in a statement about the Intimately FP launch.
A core goal of Target’s long-term plan is to regain merchandising authority through exclusive offerings.
While some of that has been focused on revamps of the retailer’s private label offerings (such as its home decor label Threshold), it’s also included launches with external brands.
The mass retailer unveiled details on how it plans to turn around its sales decline streak during a financial meeting on Tuesday. In 2026, Target plans to focus on women’s style in part by leading “with more seasonal styles and frequent partnerships driving year-round newness,” per a press release.
Target launched a limited-edition 250-piece collaboration with Roller Rabbit spanning apparel, accessories, swim and more. The retailer also expanded its in-store denim partnership with Levi’s in February, opened a new store concept in New York City last year with a focus on curated apparel and debuted a limited-time collaboration with Woolrich in October.
Newness for Target specifically in the apparel category could be vital to its turnaround, according to some experts.
“Reinstating merchandising authority in apparel & home (together ~30% of mix) will be essential to drive positive comps & improve still-negative traffic trends,” TD Cowen analysts led by Oliver Chen said in an emailed note Wednesday regarding Target’s larger strategy announcements.
