Urban Outfitters, Inc. announced earnings of $14.1 million
for the third quarter ended October 31, 2003, a 76% increase over the comparable quarter last year. Third quarter earnings per diluted share rose to $0.35 this year versus $0.20 in the prior year.

As reported earlier, net sales for the quarter increased by 29% to a record $142.3 million. This increase over the prior year was fueled by a 23% increase in the number of stores in operation, a 17% increase in total Company comparable store sales and a 48% increase in direct-to-consumer sales.

During the quarter, comparable store sales rose 15% at Urban Outfitters Retail and 19% at Anthropologie Retail, as compared to increases of 8% and 15%, respectively, for the same period in the prior year. New and noncomparable store sales increases for the quarter totaled $13.2 million.

“Our Retail brands and Direct businesses produced truly
outstanding results in the third quarter,” said Richard A. Hayne,
Chairman and President. “Sales were strong in all regions where we
operate stores; and Direct sales, particularly over the internet,
continued their meteoric growth. Most gratifying, however, was
delivering 16.5% operating margins. This is the highest quarterly rate
in the last seven years.”

Net sales for the periods were as follows: 

                              Three months ended   Nine months ended
                                  October 31,          October 31,
                                2003      2002       2003      2002
                              --------- ---------  --------- ---------
                                (in thousands)       (in thousands)
Urban Outfitters store sales   $71,290   $57,660   $184,149  $154,590
Anthropologie store sales       52,865    37,547    141,693   112,577
Direct-to-consumer sales        12,690     8,583     31,421    22,374
Free People sales                5,486     6,316     14,975    15,640
                              --------- ---------  --------- ---------
  Total net sales             $142,331  $110,106   $372,238  $305,181
                              ========= =========  ========= =========

For the quarter and the nine months, the Company's gross profit
margins increased by 434 and 263 basis points, respectively, versus
the comparable prior year periods. These gains were due primarily to
higher initial merchandise margins, decreased markdowns and the
leveraging of occupancy expenses.

As of October 31, 2003, total Company inventories grew by $15.7
million on a year-over-year basis. This increase was almost entirely
due to the acquisition of inventory to stock new retail stores. On a
comparable store basis, inventories decreased by a modest 0.9% versus
the prior year. Management believes that existing inventory, along
with shipments of merchandise scheduled to arrive in November and
early December, will be adequate to satisfy Holiday demand even though
comparable store sales in early November continue to significantly
exceed plan.

For the quarter and the nine months, selling, general and
administrative expenses, expressed as percentages of net sales,
decreased by approximately 27 and 29 basis points, respectively,
versus the same periods in the prior year. The leveraging of
store-related expenses more than offset additional costs associated
with the distribution of approximately 1.7 million and 2.6 million
copies of the newly launched Urban Direct catalog during the three and
nine months, respectively.

Thus far this fiscal year, the Company has opened thirteen new
stores – eight Anthropologie stores and five Urban Outfitters stores.
Management plans to open seven or eight additional new stores during
the remainder of Fiscal 2004.

   
                        URBAN OUTFITTERS, INC.

              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
        (amounts in thousands, except share and per share data)
                              (Unaudited)

                         Three months ended      Nine months ended
                             October 31,             October 31,
                          2003        2002        2003        2002
                       ----------- ----------- ----------- -----------

Net sales                $142,331    $110,106    $372,238    $305,181
Cost of sales,
 including certain
 buying, distribution
 and occupancy costs       85,520      70,932     231,846     198,080
                       ----------- ----------- ----------- -----------
Gross profit               56,811      39,174     140,392     107,101
Selling, general and
 administrative
 expenses                  33,333      26,082      90,753      75,293
                       ----------- ----------- ----------- -----------
Income from operations     23,478      13,092      49,639      31,808
Other income, net             198         397         692         185
                       ----------- ----------- ----------- -----------
Income before income
 taxes                     23,676      13,489      50,331      31,993
Income tax expense          9,589       5,463      20,384      12,957
                       ----------- ----------- ----------- -----------
Net income                $14,087      $8,026     $29,947     $19,036
                       =========== =========== =========== ===========
Net income per common
 share:
Basic                       $0.36       $0.21       $0.77       $0.51
                       =========== =========== =========== ===========
Diluted                     $0.35       $0.20       $0.75       $0.50