Urban Outfitter’s 1st Quarter Earnings Soar 72%

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Philadelphia—Citing improved margins and decreased markdowns, Urban Outfitters Inc. reported today its first quarter earnings hit 72%.

For the quarter ended April 30, Urban Outfitters reported a profit of $53 million, or 31 cents a share, up from $30.8 million, or 18 cents a share, a year earlier. Market analysts had forecasted 30 cents a share. Comparable retail sales, which include the direct-to-consumer channel, rose 16%, while same-store sales were up by 11%. Gross profit margins for the quarter improved by 459 basis points thanks to better initial merchandise margins, lower markdowns and higher same-store sales.

The company, operates under the Anthropologie, Free People, Leifsdottir, Terrain and Urban Outfitters brands, is one of the few specialty retailers catering to younger generations that seems to have weathered the recession selling popular trends, analysts says.

“We are delighted to begin the new fiscal year with a series of record-breaking results for the quarter,” said Glen T. Senk, ceo.”I believe our ability to deliver this performance within the greater context of our long term goals of investing in store productivity, ecommerce penetration, international expansion and new brands is all the more impressive.”

All Divisions Report Increases

Revenue for the retailer’s namesake Urban Outfitters stores were up 9 percent, direct-to-consumer sales increased 42 percent. Retail sales at the company’s Anthropologie locations jumped 22%, up 25% at Free People and Terrain sales increased 22%.

So far this year, the company has opened two new Urban Outfitters, five Anthropolgie stores and two Free People stores. The company expects to open 45 stores this year.

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