Urban Outfitters registers record Q1 sales
Urban Outfitters Inc. a leading lifestyle specialty retail company operating under the Anthropologie, BHLDN, Free People, Terrain and Urban Outfitters brands, announced net income of $34 million or earnings per diluted share of $0.23 for the three months ended April 30, 2012.
Total Company net sales rose by 9% over the same quarter last year to $569 million. Comparable retail segment net sales, which include our Direct-to-Consumer channels, increased 2% for the quarter, while comparable store net sales decreased 1%. Comparable retail segment net sales at Free People and Urban Outfitters increased 2%, and 6%, respectively, while comparable retail segment net sales at Anthropologie decreased 2% for the quarter. Direct-to-Consumer comparable net sales increased 15% and wholesale segment net sales increased 2% for the quarter.
"We are pleased to announce record first quarter sales that were driven in part by positive regular price 'comp' sales," said Chief Executive Officer, Richard A. Hayne.
"We are encouraged by the customer response to the steady progress our brands have made in creative and product execution," finished Mr. Hayne.
For the first quarter ended April 30, 2012, the gross profit rate declined by 131 basis points versus the prior year's comparable period.
The decline in the rate was primarily due to occupancy deleverage related to an increased number of store openings versus the prior comparable quarter, as well as, an increased number of new and non-comparable European stores.
Also contributing to the rate decline, were slightly higher markdowns on a few women's apparel categories across all brands.
As of April 30, 2012, total inventories increased by $36 million or 13%, on a year-over-year basis. The growth in total inventories is primarily due to an increase in total comparable retail segment inventories of 11% at cost and 5% in units, while total comparable store inventories increased 8% at cost.
The remainder of the increase was related to the acquisition of inventory to stock new and non-comparable stores and the growth in the wholesale business.
For the first quarter ended April 30, 2012, selling, general and administrative expenses, expressed as a percentage of net sales, increased by 62 basis points. This increase was primarily due to the deleveraging of direct store controllable expenses driven by the negative comparable store net sales.
During the three months ended April 30, 2012, the Company opened a total of 14 new stores including: 7 Free People stores, 4 Urban Outfitters stores, 2 Anthropologie stores and 1 BHLDN store.
Urban Outfitters Inc. is an innovative specialty retail company which offers a variety of lifestyle merchandise to highly defined customer niches through 201 Urban Outfitters stores in the United States, Canada, and Europe, catalogs and websites; 170 Anthropologie stores in the United States, Canada and Europe, catalogs and websites; Free People wholesale, which sells its product to approximately 1,400 specialty stores and select department stores, 69 Free People stores, catalogs and website; 2 BHLDN stores and a website and 1 Terrain garden center and website, as of April 30, 2012.
Urban Outfitters Inc