Philadelphia -- Urban Outfitters reported Monday that profit for the first quarter declined more than expected, posting net income of $39 million compared with $53 million a year earlier.
However, revenue topped Wall Street's estimates, as the operator of Urban Outfitters, Anthropologie, Free People and Terrain banners saw sales rise 9% to $524 million. Same-store sales fell 5%. But direct-to-consumer (catalogs and online) same-store sales increased 15%.
In a conference call with analysts, CEO Glen Send said the chain is the final implementation of its order management system, a new planning and allocation system and the rollout of mobile POS systems across all three brands. It is also upping its investment in its new bridal brand, BHLDN, with a store opening in the third quarter in Houston and an early 2012 store opening in Chicago.
The company also said it plans open 50 to 55 new stores this year and remains on track with its long-term capital projects, including the addition of a West Coast fulfillment center and expansion of its home offices. It has budgeted fiscal 2012 capital expenditures of $175 million to $195 million.