Urban Outfitters Reports Q2 Earnings Jump 46%

PHILADELPHIA, Aug. 16, 2010 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (Nasdaq:URBN), a leading lifestyle specialty retail company operating under the Anthropologie, Free People, Leifsdottir, Terrain and Urban Outfitters brands today announced earnings of $72 million and $125 million for the three and six months ended July 31, 2010, respectively. Earnings per diluted share were $0.42 for the quarter and $0.72 for the six months ended July 31, 2010.

Total Company net sales rose by 20% over the same quarter last year to $552 million. Comparable retail segment net sales, which include our direct-to-consumer channels, jumped 11% for the quarter while comparable store net sales increased 7% for the quarter. Comparable retail segment net sales at Anthropologie, Free People and Urban Outfitters increased 13%, 24%, and 9%, respectively for the quarter. Direct-to-consumer net sales soared 36% and wholesale segment net sales rose 16% for the quarter.

"We are delighted to announce record second quarter sales and earnings, with every brand, channel, region and shared service group delivering exceptional results," said Glen T. Senk, Chief Executive Officer.  "Given the context of an uncertain economic environment, the Company continues to focus on superior creative execution combined with disciplined inventory and expense management," finished Mr. Senk.

Net sales by brand and channel for the three and six months were as follows: 

	Three Months Ended		Six Months Ended
	July 31		July 31
Net sales by brand	2010	2009	2010	2009
Urban Outfitters	$   243,232	$ 211,396	$   453,737	$ 392,682
Anthropologie	256,353	203,740	481,032	368,346
Free People	46,876	39,177	87,444	74,960
Other	5,698	4,313	9,907	7,434
Total Company	$   552,159	$  458,626	$ 1,032,120	$ 843,422
Net sales by channel
Retail Stores	$   425,655	$ 361,789	$   794,196	$ 661,580
Direct-to-consumer	96,571	70,931	182,838	131,741
Retail Segment	522,226	432,720	977,034	793,321
Wholesale Segment	29,933	25,906	55,086	50,101
Total Company	$   552,159	$ 458,626	$ 1,032,120	$ 843,422

For the three and six months ended July 31, 2010, gross profit margins improved by 173 and 303 basis points, respectively, versus the prior year's comparable periods. The increase in the quarter was primarily due to a lower rate of markdowns to clear seasonal inventories, leveraging of store occupancy expense driven by positive comparable store sales and improvements in initial merchandise margins. The improvements for the six months ended July 31, 2010 were primarily due to improved initial merchandise margins, leveraging of store occupancy expenses and a lower rate of merchandise markdowns.