Urban Outfitters, Inc. saw total sales for the two month 'holiday' period ended December 31, 2006 jump 13% over the same period last year to $278 million. The growth was primarily driven by a 21% increase in the total number of stores in operation, but was offset by 5% decrease in comp sales. Increases from new and non-comparable stores added $34 million in sales during the period. Also contributing to the increase was a 21% rise in direct-to-consumer sales through the company's catalogs and web sites and a 19% increase in Free People Wholesale sales.
By brand, comp store sales decreased by 8% at Anthropologie, 4% at Urban Outfitters and increased by 4% at Free People. In the same prior year period, total company comps rose by 8% and, by brand, increased by 2%, 14% and 21%, respectively.
Sales for the calendar month of December grew by 15% while total company comparable store sales declined by 5% versus a combined 'comp' increase of 6% for the same period last year. Free People 'comp' sales gained 4%, while Anthropologie and Urban Outfitters 'comp' store sales for the month declined by 9% and 2%, respectively. Direct-to-consumer sales jumped 23% while Free People wholesale sales rose by 13%. Sales (issuance) of gift card units during the Holiday period were up 12% against the same Holiday period last year, increasing by over $1.2 million.
“During the Holiday period we continued to make progress in aligning our fashion offerings with our customers' preferences as the percentage decline in 'comp' store sales was cut in half from those reported for the third quarter. Direct-to-consumer Holiday sales were robust and continue to increase their penetration of overall Holiday business. The Urban European stores remained significantly ahead of plan and Free People Wholesale posted respectable gains from last year's Holiday period,'' said Richard A. Hayne, Chairman and President.
For the 11-month year-to-date period, total company sales increased by 12% to $1.14 billion. Total comparable store sales for the 11 months were down 6%. Direct sales rose 16% for the period, with solid growth at all brands. Finally, Free People wholesale sales jumped 39% for the year-to-date period.
Thus far, the company has opened 16 Urban Outfitters stores, 12 Anthropologie stores and 2 Free People stores — 30 new stores in total during the fiscal year. Management expects to open an additional 1 or 2 stores during January. The company will release Fourth Quarter and FY 2007 sales results on February 6, 2007.
