Urban Outfitters 1Q Profit Surges 45%

Philadelphia Urban Outfitters Inc. said Thursday its first-quarter profit rose 45%, helped by fewer markdowns and improved same-store sales.

The company’s reported net income jumped to $42.6 million compared with $29.4 million in the previous year.

For the period ended April 30, sales grew 25% to $394.3 million from $314.5 million.

Combined, same-store sales for its Anthropologie, Free People and Urban Outfitters brands increased 10% during the quarter.

“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 Glen T. Senk, CEO.

The company plans to open approximately 45 new stores during fiscal year 2009.