Urban Outfitters, Inc. saw total company sales for the first quarter increase 17% over the same period last year to $270.0 million. The jump in sales was driven by a 22% increase in the number of stores in operation resulting in new and noncomparable store sales increases of $32.4 million; a 65% jump in Free People wholesale sales; and a 17% gain in direct-to-consumer sales.

The combination of these factors more than offset a 3% decrease in total company comparable store sales during the first quarter. By brand, 'comp' store sales decreased by 2% at Anthropologie and 4% at Urban Outfitters, and increased by 14% at Free People. In the prior year's first quarter, 'comps' at those brands increased by 9%, 13% and 45%, respectively and total Company 'comps' rose by 11%.

“As our merchants navigate through the turbulence caused by the recent macro-change in women's fashion, our Urban Outfitters and Anthropologie brands both delivered Q1 'comp' store sales well below our original expectation,” said Richard A. Hayne, Chairman and President. “At the same time, the Free People wholesale and retail groups and the Urban European division produced sales results that significantly exceeded our plans. In addition, total 'comp' store sales strengthened in April over the prior two months due to the Easter calendar shift and a better customer response to the newly arrived Anthropologie summer apparel assortment,” Mr. Hayne added.

Net sales for the three months were as follows:



                                              Three months ended
                                                  April 30,
                                            2006            2005
                                            ----            ----
                                               (in thousands)
 Urban Outfitters store sales             $117,113        $104,109
 Anthropologie store sales                  99,928          87,307
 Direct-to-consumer sales                   33,486          28,722
 Free People sales                          19,480          11,187
                                          --------        --------
   Total net sales                        $270,007        $231,325
                                          ========        ========