Urban's earnings shot up 31%, hitting $59 million. Net sales rose 46%, to $478 million, while same-store sales were up 10% at the company's three primary chains. At its 140 namesake units, comps rose 17% year over year. Its 118 Anthropologie stores inched up 2%; comps at its 27 Free People locations rose 4%.
Management said during its Q3 earnings call that it could use this strong financial leverage in dealing with landlords. "We are going to go back to reviewing leases," says Tedford Marlow, president of the company's urban retail division. "Of all the retailers out there we have the better opportunity of extracting some rent reductions."
Though the retailer has put in a strong performance so far this year, management is cautious about the consumer environment. CEO Glen Bodzy says: "The consumer is fearful, and many retailers are suffering. We expect it's going to become more promotional before the end of the holidays. We expect the month ahead to be challenging and are prepared to respond."
During the third quarter, Urban Outfitters opened a total of 41 stores, including eight namesake units, six Free People locations and three Anthropologie stores.
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