Urban Outfitters, Inc., the umbrella company for the Anthropologie, Free People and Urban Outfitters brands, reported that earnings for the three months ended April 30, 2007, increased 45% to $29.4 million, or 17 cents per diluted share.
Total sales for the first quarter increased 16% to a record $314.5 million. Comparable store sales at Anthropologie and Free People were up 2% and 8%, respectively and down 5% at our Urban Outfitters stores. Total Company comparable store sales decreased 2%. Direct-to-consumer sales jumped 30% and Free People Wholesale sales rose 12% for the quarter.
“We are encouraged by the customer reaction to our assortments so far this May, and based on these results, remain guardedly optimistic about achieving our modest financial plan in the second quarter,'' said Richard A. Hayne, Chairman and President.
Net sales for the periods were as follows:
Three months ended April 30, 2007 2006 -------- -------- (in thousands) Urban Outfitters store sales $129,908 $117,113 Anthropologie store sales 118,599 99,928 Direct-to-consumer sales 43,507 33,486 Free People sales 22,530 19,480 -------- -------- Total net sales $314,544 $270,007 ======== ========
For the three months ended April 30, 2007, gross profit margins were relatively flat to last year. Total Company inventories grew by $27.4 million or 19.5% on a year-over-year basis as of April 30, 2007. The acquisition of inventory to stock new retail stores was the primary factor for this increase. Total comparable store inventories increased by 3%, but declined by 5% on a per unit basis.
For the three months ended April 30, 2007, selling, general and administrative expenses, expressed as a percentage of net sales, increased by 20 basis points versus the comparable quarter last year. This increase was primarily caused by the effect of 'comp' store sales declines on fixed store related expenses.
The company's tax rate improved to 22.3% or $0.03 per diluted share from 38.4% based upon receipt of certification for work performed on the development of its new offices that qualifies for certain one-time federal tax incentives and the benefit of certain reorganization efforts. Excluding the one-time federal tax incentive benefit the Company's estimated annual effective tax rate would have been approximately 36.2%, which the Company expects to maintain in FY08.
During the first quarter, URBN opened four new Urban Outfitters stores and two new Anthropologie stores or six new stores in total. The Company plans to open at least 38 new stores during fiscal year 2008.