Specialty retailer Urban Outfitters Inc. (URBN) Wednesday said in a filing with the Securities and Exchange Commission, or SEC, that total company sales thus far in fiscal 2010 are lower than the same period last year. The company also said that comparable- store sales trend has declined from its most recently completed fourth quarter.
According to the company, its historical and long-term goal is to achieve a net sales compounded annual growth rate of 20% or better through a combination of opening new stores, growing comparable store sales, continuing the growth of direct-to-consumer and wholesale operations and introducing new concepts.
For all brands combined, the company plans to open about 42 new stores during fiscal 2010, including approximately 9 new Free People stores and one new Terrain garden center. The remaining new stores will be divided approximately evenly between Urban Outfitters and Anthropologie.
The company also plans to decrease the circulation of anthropologie catalogs to approximately 18.4 million during fiscal 2010 from about 21.5 million catalogs circulated in fiscal 2009. The reduced circulation spend will be used for further investments in web marketing. Anthropologie's catalog circulation is expected to be consistent over the next few years.
The company also plans to maintain the circulation of approximately 12 million Urban Outfitters catalogs during fiscal 2010 and continue to further invest in web marketing initiatives. The catalog circulation is estimated to be consistent over the next few years. Meanwhile, Free People catalog circulation is planned to be expanded to about 7.4 million catalogs during fiscal 2010. The company also intends to increase the level of catalog circulation over the next few years.
Urban Outfitters also said in the filing that its fiscal 2009 net sales were up 21.7% to $1.83 billion from $1.51 billion last year, driven by a 22% increase in retail segment sales. The company's wholesale segment contributed $16 million to the fiscal 2009 revenue growth as Free People wholesale net sales rose 13.4% and Leifsdottir contributed $3 million.
The company attributed higher retail segment sales during fiscal 2009 to a $156 million increase in non-comparable and new store net sales, a 32.4% rise in direct-to-consumer net sales and 7.8% comparable store net sales growth. The increase in comparable-store net sales was comprised of 3.4%, 4.1% and 11.9% increases at Anthropologie, Free People and Urban Outfitters, respectively.
Urban Outfitters also stated that higher net sales attributable to non-comparable and new stores was primarily due to the opening of 49 new stores in fiscal 2009 and 38 new stores in fiscal 2008. Further, average unit sales prices and transactions grew in fiscal 2009, resulting from an increased response to the company's merchandise offerings. These increases more than offset a slight decrease in the number of units sold per transaction, Urban Outfitters noted.
The company also stated that direct-to-consumer sales contributed approximately 14.9% of its consolidated net sales for fiscal 2009. Free People wholesale sales accounted for about 5.8% of full-year 2009 consolidated net sales.
At the end of fiscal 2009, the company's net inventories totaled $169.7 million, representing 12.8% of its total assets.
URBN is trading at $15.29, down $1.09, on a volume of 7.48 million shares.
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