Urban Outfitters eyes expansion through acquisition

Philadelphia Urban Outfitters said it will consider acquisitions of brands that have the potential over time to add about $500 million to annual revenue, according to Bloomberg.

Urban Outfitters said it will consider purchasing brands sold at department stores, specialty stores or at stand-alone locations in the next few years if the right opportunity presents itself.

“We do take a look at a lot of deals,” John Kyees, CFO, said during an interview with Bloomberg. “We get calls on many things because we have money. We have cash, we have no debt, and we will consider many types of acquisitions.”

Urban Outfitters has made only one acquisition in its 39-year history, buying J. Franklin Styer Nurseries at the start of 2008 to sell garden products and outdoor furniture in Philadelphia.

Kyees declined to specify brands that the company is looking at.

Urban Outfitters plans to open about 50 new stores next year. As many as seven will be Urban Outfitters and Anthropologie stores in Germany and the United Kingdom, Kyees said. The retailer currently has 18 European stores.

Italy, Spain and France are future targets for the company, and within the next 10 years the company could potentially expand its European store base to 100 Urban Outfitters stores and 100 Anthropologie stores, Kyees said.