Urban Outfitters 2009 Annual Report Download - page 4

In 1984 we established the Free People wholesale division to develop, in conjunction with Urban
Outfitters, private label apparel lines of young women’s casual wear that could be effectively sold at
attractive prices in Urban Outfitters stores. During the second quarter of fiscal 2009, we launched
Leifsdottir, the wholesale division of our Anthropologie brand.
Our fiscal year ends on January 31. All references in this discussion to our fiscal years refer to the
fiscal years ended on January 31 in those years. For example, our fiscal 2009 ended on January 31,
2009.
Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K
and amendments to those reports filed with, or furnished to, the SEC pursuant to Section 13(a) or 15(d)
of the Securities Exchange Act of 1934, as amended, are available free of charge on our investor
relations web site, www.urbanoutfittersinc.com, as soon as reasonably practicable after we
electronically file such material with, or furnish such material to, the SEC. We will voluntarily provide
electronic or paper copies (other than exhibits) of our filings free of charge upon written request. You
may also obtain any materials we file with, or furnish to, the SEC on its web site at www.sec.gov.
Retail Segment
Urban Outfitters. Urban Outfitters targets young adults aged 18 to 30 through its unique
merchandise mix and compelling store environment. We have established a reputation with these
young adults, who are culturally sophisticated, self-expressive and concerned with acceptance by their
peer group. The product offering includes women’s and men’s fashion apparel, footwear and
accessories, as well as an eclectic mix of apartment wares and gifts. Apartment wares range from rugs,
pillows and shower curtains to books, candles and novelties. Stores average approximately
9,500 square feet of selling space, and typically carry an estimated 35,000 to 40,000 stock keeping
units (“SKUs”). Our stores are located in large metropolitan areas, select university communities,
specialty centers and enclosed malls. Our stores accommodate our customers’ propensity not only to
shop, but also to congregate with their peers. In fiscal 2009, we circulated approximately 12 million
Urban Outfitters catalogs in an effort to expand our distribution channels and increase brand
awareness. We plan to maintain our circulation of approximately 12 million catalogs in fiscal 2010 and
will continue to invest in web marketing initiatives. As of January 31, 2009, we operated 142 Urban
Outfitters stores in North America and Europe, as well as the www.urbanoutfitters.com and
www.urbanoutfitters.co.uk web sites and the Urban Outfitters catalog. We plan to open approximately
16 Urban Outfitters stores in fiscal 2010. Urban Outfitters’ North American and European store sales
accounted for approximately 35.9% and 6.2% of consolidated net sales, respectively, for fiscal 2009.
Anthropologie. Anthropologie tailors its merchandise and inviting store environment to
sophisticated and contemporary women aged 30 to 45. Anthropologie’s unique and eclectic product
assortment includes women’s casual apparel and accessories, home furnishings and a diverse array of
gifts and decorative items. The home furnishings range from furniture, rugs, lighting and antiques to
table top items, bedding and gifts. Stores average approximately 7,400 square feet of selling space,
typically carry an estimated 40,000 to 45,000 SKUs and are located in specialty retail centers, upscale
street locations and enclosed malls. During fiscal 2009, we circulated approximately 21.5 million
catalogs and plan to decrease circulation to approximately 18.4 million catalogs in fiscal 2010. We
plan to replace reduced circulation expenditures with investments in web marketing initiatives. As of
January 31, 2009, we operated 121 Anthropologie stores in the United States, as well as the
2