Urban Outfitters Reports Record 4th Quarter Operating Profit

PHILADELPHIA, March 7, 2011 (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 $75 million and $273 million for the fourth quarter and year ended January 31, 2011, respectively. Earnings per diluted share were $0.45 for the quarter and $1.60 for the year.

Total Company net sales rose by 14% over the same quarter last year to $668 million. Comparable retail segment net sales, which include our direct-to-consumer channels, improved 4% for the quarter while comparable store net sales decreased 2% for the quarter. Comparable retail segment net sales at Anthropologie, Free People and Urban Outfitters increased 1%, 28%, and 5% respectively for the quarter. Direct-to-consumer comparable net sales soared 28% and wholesale segment net sales rose 31% for the quarter.

"I am pleased to announce record sales and operating profits for the quarter, as well as our second highest operating margin rate for the fourth quarter and year," said Glen T. Senk, Chief Executive Officer. "It was another year of strong performance as we delivered 17% sales growth, 22% operating income growth, and executed our long standing goal of growing profits faster than sales," finished Mr. Senk.

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

	Three Months Ended January 31		Twelve Months Ended January 31
Net sales by brand	2011	2010	2011	2010
Urban Outfitters	$321,772	$284,068	$1,041,502	$917,223
Anthropologie	283,418	257,759	1,011,999	842,374
Free People	58,941	43,589	202,493	163,634
Other	4,259	3,077	18,108	14,584
Total Company	$668,390	$588,493	$2,274,102	$1,937,815
Net sales by channel
Retail Stores	$492,381	$452,774	$1,720,002	$1,509,994
Direct-to-consumer	145,282	112,231	433,790	323,739
Retail Segment	637,663	565,005	2,153,792	1,833,733
Wholesale Segment	30,727	23,488	120,310	104,082
Total Company	$668,390	$588,493	$2,274,102	$1,937,815

For the fourth quarter ended January 31, 2011, gross profit margin percentage declined by 208 basis points versus the prior year's comparable period. This decrease was primarily due to increased merchandise markdowns to clear seasonal inventory associated with changing women's apparel fashion trends, along with higher shipping costs associated with increased penetration of international direct-to-consumer business.