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Urban Outfitters Inc URBN
Q4 2013 Earnings Call Transcript

Transcript Call Date 03/11/2013

Operator: Good day, ladies and gentlemen, and welcome to the Urban Outfitters Fourth Quarter Fiscal 2013 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions with instructions following 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. As a reminder this conference is being recorded.

I would like to now introduce Oona McCullough, Director of Investor Relations. Ms. McCullough you may begin.

Oona McCullough - Director, IR: Good afternoon, and welcome to the URBN fourth quarter fiscal 2013 conference call. Earlier this afternoon, the Company issued a press release outlining the financial and operating results for the three-month period ending January 31, 2013.

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.

We will begin today's call with Frank Conforti, our Chief Financial Officer, who will provide financial highlights for the fourth quarter; Richard Hayne, our Chief Executive Officer, will then comment on our broader strategic initiatives. Following that, we will be pleased to address your questions.

As usual, the text of today's conference call, along with detailed management commentary will be posted to our corporate website at www.urbanoutfittersinc.com.

I'll now turn the call over to Frank.

Frank J. Conforti - CFO: Thank you, Oona and good afternoon, everyone. We are pleased to announce strong sales growth and significant gross margin and profit improvement for the quarter. We are very proud of these results and the progress we've made this year. We entered the year with a goal to accelerate sales growth, while improving margin rates and we achieved exactly that. each quarter this year, our sales growth rate was stronger than the preceding quarter and we improved our gross profit margin by over 200 basis points for the year. I will discuss our fiscal 2013 fourth quarter financial results versus the prior comparable quarter and then I will pass the call onto our Chief Executive Officer Dick Hayne for his remarks.

Lastly, Dick will hand the call back to me and I will give you some details on our plans for fiscal year, 2014. Total Company sales for the quarter increased by 17% to a fourth quarter record of $857 million. This increase was driven by a robust direct to-consumer growth rate of 44%, a $19 million increase in non-comparable store sales, which includes 10 new stores opened during the quarter and double-digit wholesale growth.

Total Company comparable retail segment sales, which includes comparable sales from our stores and direct to-consumer channel, increased by 11%. This includes increases of 37%, 11% and 7% at Free People, Urban Outfitters and Anthropologie respectively. Total Company comparable store sales were flat due to a 2% increase in transactions, which was offset by a 2% decrease in average unit selling price with no change in units per transaction.

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