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Urban Outfitters Reports Q3 Earnings Increase 17%

During the nine months ended October 31, 2010, the Company has opened a total of 29 new stores including: 11 Urban Outfitters stores, 13 Anthropologie stores and 5 Free People stores. As of February 1, 2010, the Company converted one Free People store to a new Free People wholesale showroom. The Company expects to open approximately 45 new stores during the fiscal year.

Urban Outfitters, Inc. is an innovative specialty retail company which offers a variety of lifestyle merchandise to highly defined customer niches through 166 Urban Outfitters stores in the United States, Canada, and Europe, catalogs and two web sites; 150 Anthropologie stores in the United States, Canada and Europe, catalogs and two websites; Free People wholesale, which sells its product to approximately 1,400 specialty stores and select department stores; 38 Free People stores, catalogs and web site; Leifsdottir wholesale, which sells its product to approximately 65 specialty stores and select department stores, and a Leifsdottir web site and 1 Terrain garden center and web site as of October 31, 2010. 

Management third quarter commentary is located on our website at www.urbanoutfittersinc.com .   A conference call will be held today to discuss third quarter results and will be web cast at 5:00 pm. EST at:  http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-EventDetails&EventId=3273164

This news release is being made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 . Certain matters contained in this release may constitute forward-looking statements. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, overall economic and market conditions and the resultant impact on consumer spending patterns, including any effects of terrorist acts or war, availability of suitable retail space for expansion, timing of store openings, seasonal fluctuations in gross sales, the departure of one or more key senior managers, import risks, including potential disruptions and changes in duties, tariffs and quotas and other risks identified in filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.

 

URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
         
  Three Months Ended Nine Months Ended
  October 31, October 31,
  2010 2009 2010 2009
         
Net sales $573,592 $505,900 $1,605,712 $1,349,322
Cost of sales, including certain buying, distribution and occupancy costs 337,599 295,812 934,152 808,838
Gross profit 235,993 210,088 671,560 540,484
Selling, general and administrative expenses 131,193 114,327 377,680 320,162
Income from operations 104,800 95,761 293,880 220,322
Other income, net 876 1,817 1,915 4,847
Income before income taxes 105,676 97,578 295,795 225,169
Income tax expense 32,570 35,186 98,075 82,951
Net income $73,106 $62,392 $197,720 $142,218
         
Net income per common share:         
Basic $0.44 $0.37 $1.18 $0.85
Diluted $0.43 $0.36 $1.16 $0.83
         
Weighted average common shares and common share equivalents outstanding:        
Basic 165,699,540 168,319,514 167,808,729 167,903,283
Diluted 168,575,637 171,443,902 171,228,883 170,831,491
         
AS A PERCENT OF NET SALES        
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales, including certain buying, distribution and occupancy costs 58.9% 58.5% 58.2% 59.9%
Gross profit 41.1% 41.5% 41.8% 40.1%
Selling, general and administrative expenses 22.8% 22.6% 23.5% 23.8%
Income from operations 18.3% 18.9% 18.3% 16.3%
Other income, net 0.1% 0.4% 0.1% 0.4%
Income before income taxes 18.4% 19.3% 18.4% 16.7%
Income tax expense 5.7% 7.0% 6.1% 6.2%
Net income 12.7% 12.3% 12.3% 10.5%
URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
 (unaudited)
       
       
  October 31, 2010 January 31, 2010 October 31, 2009
       
Assets      
Current assets:      
Cash and cash equivalents $253,546 $159,024 $202,316
Marketable securities 250,078 342,512 216,079
Accounts receivable, net of allowance for doubtful accounts of $1,538, $1,284 and $1,276, respectively 47,653 38,405 37,592
Inventories 289,256 186,130 234,521
Prepaid expenses, deferred taxes and other current assets 59,073 80,142 46,987
Total current assets 899,606 806,213 737,495
       
Property and equipment, net 582,786 539,961 534,260
Marketable securities 186,202 243,445 233,525
Deferred income taxes and other assets 53,377 46,474 35,867
Total Assets $1,721,971 $1,636,093 $1,541,147
       
Liabilities and Shareholders' Equity      
Current liabilities:      
Accounts payable $114,967 $78,041 $93,264
Accrued expenses, accrued compensation and other current liabilities 123,061 110,508 88,950
Total current liabilities 238,028 188,549 182,214
       
Deferred rent and other liabilities 164,044 150,769 143,673
Total Liabilities 402,072 339,318 325,887
       
Shareholders' equity:      
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued
Common shares; $.0001 par value, 200,000,000 shares authorized, 163,914,628, 168,558,371 and 168,397,488 issued and outstanding, respectively 17 17 17
Additional paid-in capital 10,165 184,620 179,642
Retained earnings 1,318,952 1,121,232 1,043,557
Accumulated other comprehensive loss (9,235) (9,094) (7,956)
Total Shareholders' Equity 1,319,899 1,296,775 1,215,260
Total Liabilities and Shareholders' Equity $1,721,971 $1,636,093 $1,541,147
CONTACT:  Urban Outfitters, Inc.
          Oona McCullough, Director of Investor Relations
          (215) 454-4806

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