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Urban Outfitters remains optimistic for spring season
06 Mar '08
3 min read
For the quarter and year ended January 31, 2008, gross profit margins increased by 287 basis points and 135 basis points, respectively, versus the prior year's comparable periods. The increase for both periods was primarily due to the combination of a lower rate of merchandise markdowns and leveraging of store occupancy expenses.
During the quarter, total company comparable store sales grew by 11%, while ending comparable store inventories decreased by 3%. Total company inventories grew by $17.5 million or 11% on a year-over-year basis.
The acquisition of inventory to stock new retail stores was the primary factor for this increase. The Company believes this inventory level is appropriate to sustain a healthy positive comp outlook for the first quarter of fiscal year 2009.
For the quarter ended January 31, 2008, selling, general and administrative expenses (SG&A), expressed as a percentage of net sales, decreased by 101 basis points, versus the same quarter last year. T
his favorable rate reduction was driven by leveraging of store costs related to the increase in 'comp' sales and a reduction of corporate expenses. For the year ended January 31, 2008, SG&A decreased by 18 basis points due to favorable rate reductions from controlling store support related expenses which were partially offset by non-comparable expenses to operate our new home office facility.
The Company's quarterly income tax rate increased to 36.0% of income from 28.4% of income in the prior quarter. The lower tax rate in the fourth quarter of fiscal year 2007 was due to the receipt of certification for work performed on the development of the Company's new offices that qualified for certain one-time federal tax incentives. The Company estimates its annual effective tax rate will range from 36% to 36.5% for fiscal year 2009.
During the year ended January 31, 2008 the Company opened 16 Urban Outfitters stores, 15 Anthropologie stores and 7 Free People stores or 38 new stores in total. The Company plans to open 45 to 49 new stores during fiscal year 2009.
During the quarter, total company comparable store sales grew by 11%, while ending comparable store inventories decreased by 3%. Total company inventories grew by $17.5 million or 11% on a year-over-year basis.
The acquisition of inventory to stock new retail stores was the primary factor for this increase. The Company believes this inventory level is appropriate to sustain a healthy positive comp outlook for the first quarter of fiscal year 2009.
For the quarter ended January 31, 2008, selling, general and administrative expenses (SG&A), expressed as a percentage of net sales, decreased by 101 basis points, versus the same quarter last year. T
his favorable rate reduction was driven by leveraging of store costs related to the increase in 'comp' sales and a reduction of corporate expenses. For the year ended January 31, 2008, SG&A decreased by 18 basis points due to favorable rate reductions from controlling store support related expenses which were partially offset by non-comparable expenses to operate our new home office facility.
The Company's quarterly income tax rate increased to 36.0% of income from 28.4% of income in the prior quarter. The lower tax rate in the fourth quarter of fiscal year 2007 was due to the receipt of certification for work performed on the development of the Company's new offices that qualified for certain one-time federal tax incentives. The Company estimates its annual effective tax rate will range from 36% to 36.5% for fiscal year 2009.
During the year ended January 31, 2008 the Company opened 16 Urban Outfitters stores, 15 Anthropologie stores and 7 Free People stores or 38 new stores in total. The Company plans to open 45 to 49 new stores during fiscal year 2009.
Urban Outfitters Inc
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