Urban Outfitters Income Skyrockets

Urban Outfitters Inc. posted net income of $546.9 million for the second quarter, a 79% surge over $31.9 million in the prior year.

The direct marketer and retailer reported net sales of $454.2 million for the quarter ended July 31, an increase over net sales of $348.4 million last year.

The Philadelphia company posted direct marketing sales of $60.5 million for the quarter, an increase over sales of $42.5 million in the prior year.

For the quarter, Urban reported that gross profit margins increased by 373 basis points over the prior year. Management attributed this to “improvements in initial merchandise cost, reductions in markdowns and leverage of store occupancy costs.”

In addition, the firm's second quarter selling, general and administrative expenses, expressed as a percentage of net sales, decreased by 95 basis points, compared to the prior year.