Urban Outfitters Q3 Sales Jump 33%; Comps Rise 18%

Urban Outfitters, Inc. announced total company sales for the third quarter jumped 33% to a record $288.8 million from $216.4 million last year. Management pointed to a 13% rise in total company comparable store sales; a 28% increase in the number of stores in operation resulting in
new and noncomparable store sales increases of $31.7 million; a 32% gain in direct-to-consumer sales; and a 109% surge in Free People wholesale sales as causes for the gain.

Total company comparable store sales increased by 13% during the third quarter — this on top of an 18% 'comp' increase during the same period last year. Quarterly 'comp' store sales at the Urban Outfitters, Anthropologie and Free People brands rose by 19%, 7% and 21% respectively, this year, versus last year's increases of 16%, 22% and 48%.

“All of our Brands and modes of distribution posted record revenues during the third quarter,” said Richard A. Hayne, chairman and president. “The retail segment produced yet another quarterly double-digit 'comp' store sales gain, while our wholesale operation delivered its strongest quarterly revenue performance ever with a very impressive 109% year-over-year gain. We continue to maintain strong momentum going into the Holiday selling season and believe we will deliver record-shattering revenues in the fourth quarter, as well,” Mr. Hayne concluded.

Net sales for the periods were as follows:

                                Three months ended  Nine months ended
                                   October 31,         October 31,
                                 2005      2004      2005      2004
                                  (in thousands)      (in thousands)
 Urban Outfitters store sales  $137,483  $102,723  $363,901  $272,130
 Anthropologie store sales      101,410    81,467   279,320   221,807
 Direct-to-consumer sales        30,921    23,505    87,916    60,479
 Free People sales               18,987     8,658    42,381    27,711
                               --------  --------  --------  --------
    Total net sales            $288,801  $216,353  $773,518  $576,127
                               ========  ========  ========  ========

Management expects to release earnings results for the three and nine months ended October 31, 2005 on November 10, 2005.

Thus far this fiscal year, the company has opened 20 new stores and maintains its plan to open a total of 30-32 new stores, including 4 Free People stores, in the current fiscal year.