Urban Outfitters Third Quarter Earnings Call

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Author: 123jump.com Staff
123jump.com
Last Update: 12:38 AM EST November 15 2006

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The apparel and accessories retailer reported net sales increase of 7% to $308.4 million, as a 24% increase in the number of stores in operation and a 17% rise in direct-to-consumer sales offset 10% drop in same store sales. Year to date, Urban Outfitters has opened 23 new stores and plans to open additional nine stores in the fourth quarter. The company expects to continue to grow sales at 20% each year, and plans to return to the target 20% operating profitability.

The CapEx seemed to be little higher than expected. What do you think about next year’s CapEx?

This year''s CapEx will be much higher than the subsequent years because this year there was reconstruction of the corporate office. Next year the CapEx number should be in the $80 to $100 million range. That will be significantly less than the $150 or $160 million of this year.

Was there a trade off between the numbers of Free Peoples last year versus the new concept you talked about?

The company talked about concept that it is working on. It has not announced it as it will not be a material part of the business for the next three years.

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