Urban Outfitters’ Income Grows in Quarter

Urban Outfitters Inc. reported net income of $42.6 million for the first quarter, an increase over $29.4 million last year.

The direct marketer posted sales of $394.3 million for the quarter ended April 30, a 25% gain over $314.5 million in the prior year.

The Philadelphia company posted DM sales of $58.2 million for the quarter, an increase over $43,5 million in the prior year.

"We produced exceptional results during the quarter: 'comp' store sales jumped 10%; gross profit rose 41%, or over 400 basis points; operating margin improved 75% to 16% of net sales; and we opened 12 new stores, including the launch of our newest concept, Terrain," said CEO Glen T. Senk, in a statement.

The firm said that gross profit margins increased by 444 basis points over last year.

Management attributed this to reductions in merchandise markdowns, improvement to initial merchandise cost and leveraging of store occupancy costs.

In addition, Urban Outfitters’ selling, general and administrative expenses, expressed as a percentage of net sales, decreased by 7 basis points versus the comparable period last year.