Urban Outfitters Inc, a leading lifestyle specialty retail company operating under the Anthropologie, Free People, Terrain and Urban Outfitters brands announced that for the three months ended April 30, 2008, income from operations increased 75% to $62.9 million and generated earnings of $0.25 per diluted share.
As stated in the Company's previous sales release on May 8, 2008, total Company sales for the first quarter increased 25% to a record $394.3 million. Comparable (comp) store sales at Anthropologie, Free People and Urban Outfitters rose 10%, 19% and 10%, respectively, for a combined 10% increase. Direct-to-consumer sales jumped 34% and Free People wholesale sales increased 22%.
"We produced exceptional results during the quarter: 'comp' store sales jumped 10%; gross profit rose 41%, or over 400 basis points; operating margin improved 75% to 16% of net sales; and we opened 12 new stores, including the launch of our newest concept, Terrain," said Glen T. Senk, Chief Executive Officer. "I want to congratulate our teams for delivering such an excellent performance," finished Mr. Senk.
For the three months ended April 30, 2008, gross profit margins increased by 444 basis points versus the comparable period last year. Reductions in merchandise markdowns, followed by improvement to initial merchandise cost and leveraging of store occupancy costs helped achieve the margin growth. As of April 30, 2008, inventories grew by $23.2 million or 13.8%, on a year-over-year basis, driven by the acquisition of inventory to stock new retail stores. Total comparable store inventories decreased by 3%.