Profits soar at Urban Outfitters
19 August 2010 09:36
Impressive positive growth has continued at Urban Outfitters in the three months to July 31st. Results were in line with forecasts, with total quarterly revenue up by 21% to $552 million, driven by new stores and an 11% lift in comparable retail segment sales.
By brand, comparable sales rose by 9% at Urban Outfitters, 13% at Anthropologie and 24% at Free People with traffic strong across all three concepts. Transaction counts increased by 6%, with direct-to-consumer sales up by 36%. Gross margin improved to 42.5% from 40.8% as a result of fewer markdowns and better merchandise mix.
Chief executive Glen T Senk said: "We are delighted to announce record second quarter sales and earnings, with every brand, channel, region and shared service group delivering exceptional results. Given the context of an uncertain economic environment, the company continues to focus on superior creative execution combined with disciplined inventory and expense management."
During the six months ended July 31st, the company opened a total of 16 new stores including: five Urban Outfitters stores, eight Anthropologie stores and three Free People stores. The group expects to open approximately 45 new stores during the fiscal year.
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