Urban Outfitters Store Comps Up 11% for Holiday Period

Urban Outfitters, Inc., which operates under the Anthropologie, Free People and Urban Outfitters brands, announced record sales for the two-month period beginning November first and ending December 31, 2004.

Total Company sales for the two-month Holiday selling season jumped 47% to a record $194.6 million. Total comparable store sales for the two months at Anthropologie, Free People and Urban Outfitters were up 18%, 64%, and 11%, respectively, for a combined 14% increase, versus a combined 20% comp increase for the same period last year. Direct-to-consumer sales shot up 74% for the period, with significant growth at both Anthropologie Direct and Urban Direct. Free People wholesale sales for the period more than doubled, rising by 175%.

Comparable store sales for the calendar month of December grew by a combined 15% with Anthropologie, Free People and Urban Outfitters reporting gains of 18%, 61% and 12%, respectively, against the same month in the prior year. Direct-to-consumer sales rose 57% while Free People wholesale sales surged ahead 122%. Sales (issuance) of gift cards during the Holiday period were up 61% against the same Holiday period last year, increasing by over $2.7 million.

“During the two-month Holiday selling season, sales in the stores, through the direct channels and to our wholesale customers were exceptional,” said Richard A. Hayne, Chairman and President. “This December, 93% of our stores recorded their highest single-month sales volume ever. While we are deeply gratified by these Holiday results, especially given the strong same-store sales last year, we remain cautious as we approach the more difficult comp store sales comparisons in the first quarter of next year.”

Total Company sales for the 11-month period jumped 53% to a record $770.7 million. Total comparable store sales for the 11 months were up 23%. Direct-to-consumer sales rose 87% for the period, with significant growth at both Anthropologie Direct and Urban Direct. Free People wholesale sales increased 59% for the period.

The Company has opened 13 Anthropologie stores, 14 Urban Outfitters stores and 1 Free People store – 28 new stores in total during the fiscal year. This is slightly higher than our previously stated goal of 25 to 27 new stores. Management expects to release the Company’s Fourth Quarter and FY 2005 sales results on February 3, 2005.