Urban Outfitters, Inc., a specialty retail company operating under the Anthropologie, Free People, Terrain and Urban Outfitters brands today announced income from operations of $46.0 million or net income of 18 cents per diluted share for the three months ended April 30, 2009.


Total sales for the first quarter reached $385.0 million, a 2.0% decrease from the prior year's first quarter. Comparable retail segment sales, which include its Direct-to-consumer channels, decreased 7.0% for the quarter.


Comparable store sales at Urban Outfitters, Anthropologie and Free People decreased 6.0%, 13.0% and 23.0%, respectively, for a combined decrease of 9.6%. Direct-to-consumer sales increased 4.0% and Wholesale segment sales were flat for the quarter.

“Given the challenging economic environment, we were pleased to produce 12% operating profits,'' said Glen T. Senk, Chief Executive Officer. “Based on our read of the customer, I believe our business is well positioned to show improvement over the next several quarters,'' he said.


For the three months ended April 30, 2009, gross profit margins decreased by 300 basis points versus the comparable period last year. This decrease is primarily due to a higher rate of store occupancy expense driven by the decrease in comparable store sales, and merchandise markdowns to clear seasonal merchandise.

 

As of April 30, 2009, inventories decreased by $1.4 million, or 1.0% on a year-over-year basis as comparable store inventory declines more than offset additions to inventories in new stores. Total comparable store inventories decreased by 7.0%.

 

During the first quarter, selling, general and administrative expenses, expressed as a percentage of net sales, increased by 98 basis points versus the comparable period last year. This increase was primarily due to de-leveraging of fixed direct store costs.

 

Earnings per share decreased by 289% to 18 cents per diluted share for the three months ended April 30, 2009. The company's tax rate rose to 36.1%. Management expects the tax rate to remain fairly consistent for the balance of the fiscal year.

 

During the three months ended April 30, 2009 the company opened a total of five new stores including one new Urban Outfitters store, two new Anthropologie stores and two new Free People stores. The company expects to open approximately 42 new stores during the current fiscal year.
Three months ended
                                                         April 30,
                                                    ——————
                                                      2009      2008
                                                    ——–  ——–
                                                      (in thousands)
 Urban Outfitters stores                            $152,832  $159,790
 Anthropologie stores                                138,343   145,596
 Free People stores                                    7,313     5,859
 Terrain                                               1,303       617
                                                    ——–  ——–
   Net store sales                                   299,791   311,862
                                                    ——–  ——–
 Direct-to-consumer                                   60,810    58,248
                                                    ——–  ——–
   Retail segment net sales                          360,601   370,110
                                                    ——–  ——–
 Wholesale Segment Sales                              24,195    24,182
                                                    ——–  ——–
   Total net sales                                  $384,796  $394,292
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