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Urban Outfitters reports Q1 earnings
May '09
Urban Outfitters Inc, a leading lifestyle specialty retail company operating under the Anthropologie, Free People, Terrain and Urban Outfitters brands today announced income from operations of $46 million or net income of $0.18 per diluted share for the three months ended April 30, 2009.

As stated in the Company's previous sales release on May 7, 2009, total sales for the first quarter reached $385 million, a 2% decrease from the prior year's first quarter. Comparable retail segment sales, which include our Direct-to-consumer channels, decreased 7% for the quarter. Comparable store sales at Urban Outfitters, Anthropologie and Free People decreased 6%, 13% and 23%, respectively, for a combined decrease of 9.6%. Direct-to-consumer sales increased 4% and Wholesale segment sales were flat for the quarter.

"Given the challenging economic environment, we were pleased to produce 12% operating profits," said Glen T. Senk, Chief Executive Officer. "Based on our read of the customer, I believe our business is well positioned to show improvement over the next several quarters," finished Mr. Senk.

For the three months ended April 30, 2009, gross profit margins decreased by 300 basis points versus the comparable period last year. This decrease is primarily due to a higher rate of store occupancy expense driven by the decrease in comparable store sales, and merchandise markdowns to clear seasonal merchandise.

As of April 30, 2009, inventories decreased by $1.4 million, or 1% on a year-over-year basis as comparable store inventory declines more than offset additions to inventories in new stores. Total comparable store inventories decreased by 7%.

During the first quarter, selling, general and administrative expenses, expressed as a percentage of net sales, increased by 98 basis points versus the comparable period last year. This increase was primarily due to de-leveraging of fixed direct store costs.

Earnings per share decreased by 28% to $0.18 per diluted share for the three months ended April 30, 2009. The Company's tax rate rose to 36.1%. Management expects the tax rate to remain fairly consistent for the balance of the fiscal year.

During the three months ended April 30, 2009 the Company opened a total of five new stores including one new Urban Outfitters store, two new Anthropologie stores and two new Free People stores. The Company expects to open approximately 42 new stores during the current fiscal year.

Urban Outfitters Inc

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