Operator: Good day, ladies and gentlemen and welcome to Urban Outfitters, Incorporated First Quarter Fiscal 2011 Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. Please do not queue for the Q&A portion of this call until announced. Anyone doing so prematurely will be deleted from the queue. (Operator Instructions). As a reminder this conference call is being recorded. The following discussions may include forward-looking statements.
Please note that actual results may differ materially from those statements. Additional information concerning factors that could cause actual results to differ materially from projected results is contained in the company’s filings with the Securities and Exchange Commission.
I would now like to introduce your host for today’s conference Mr. Glen Senk, CEO. Sir, you may begin.
Glen T. Senk - CEO: Good morning and welcome to the URBN quarterly conference call. Joining me today is Eric Artz, Chief Financial Officer; John Kyees, Chief Investor Relations Officer; and the majority of our brand and shared service leaders.
Earlier this morning, the company issued a press release outlining the financial and operating results for the three-month period ending April 30, 2010. I will begin today’s call by reading prepared commentary regarding our performance, then the Group and I will be pleased to answer any questions you may have. As usual, you will be able to access the text of today’s conference call on our corporate website at www.urbanoutfittersinc.com.
We are delighted to begin the new fiscal year with the series of record breaking results for the quarter. The following summarizes our first quarter fiscal 2011 performance versus the comparable quarter last year; net sales increased 25% to $480 million. Income from operations grew 78% to $82 million, resulting in an operating margin of 17%. Net income increased 72% to $53 million or $0.31 per diluted share.
Comparable Retail segment sales, which include our direct-to-consumer channel rose 16% with increases of 22%, 25%, 22% and 9% at Anthropologie, Free People, Terrain and Urban Outfitters, respectively.
Total company comparable store sales increased 11%. Direct-to-consumer sales rose 42%, with all three brands posting double-digit increases. Wholesale revenue increased 4% to $25 million.
Gross profit margins increased 459 basis points, aided by significant gains in initial margins, reductions in merchandise markdowns to clear seasonal product, and the lower rate of occupancy expense driven by the strong store comparable net sales growth.
Selling, general and administrative expenses expressed as the percentage of sales, declined 55 basis points to 24.7%. Comparable Retail segment inventories, which include our direct-to-consumer channel, were 3% higher at quarter’s ends.
Finally, cash, cash equivalents and marketable securities grew year-to-year by $213 million to $773 million, increasing $28 million to the January 31, 2010 balance. I'll begin today by providing more detail on each of our key business metrics for the quarter starting with sales.