Urban Outfitters profit soars
August 19, 2010,
Urban Outfitters Inc. announced record second quarter sales and earnings growth for its retail brands Anthropologie, Urban Outfitters, Terrain, Free People and Leifsdottir.
Earnings jumped 46% to $72 million, or 42 cents per share for the quarter ended July 31.
Sales rose by 20% over the same quarter last year to $552 million.
Accessories and housewares were the strongest performing category for the Urban Outfitters brand, which saw net sales increase by 15% for the quarter and 16% for the first half of the fiscal year, compared to last year's numbers.
Anthropologie's net sales for the second quarter rose 26% over the second quarter of 2009 to $256 million, led by strength in women's apparel. For the six months ended July 31, 2010 Anthropologie's net sales rose 31%, from $368 million in 2009, to $481 million.
"We are delighted to announce record second quarter sales and earnings, with every brand, channel, region and shared service group delivering exceptional results," said ceo Glen Senk. "Given the context of an uncertain economic environment, the company continues to focus on superior creative execution combined with disciplined inventory and expense management."
Anthropologie opened three new domestic stores during the quarter bringing the global store count to 145. Comparable retail segment sales, which include the direct-to-consumer channel, increased 13%.
During the second quarter, the company committed to a distribution and fulfillment center based in the UK Midlands that will support long-term growth for both the retail and direct-to consumer channels for all brands in Europe. The center is approximately 240,000 square feet and is expected to open in mid-year 2011.
In the company's second quarter conference call, Senk said Urban Outfitters Inc. is also laying the groundwork for a 2012 entry into Tokyo, will continue to invest in and shape the Terrain garden brand, and the company's new Wedding concept remains on target for a Spring 2011 launch.
During the six-month period, Urban Outfitters Inc. opened a total of 16 new stores including five Urban Outfitters, eight Anthropologies, and three Free People stores. The company expects to open approximately 45 new stores during the fiscal year.