Urban Outfitters 2009 Annual Report Download - page 5

www.anthropologie.com web site and the Anthropologie catalog. We plan to open approximately 16
Anthropologie stores in fiscal 2010 including our first Anthropologie store in Europe. Anthropologie’s
store sales accounted for approximately 35.0% of consolidated net sales for fiscal 2009.
Free People. Our Free People retail stores primarily offer Free People branded merchandise
targeted to young contemporary women aged 25 to 30. Free People offers a unique merchandise mix
of casual women’s apparel, accessories and gifts. Free People retail stores average approximately
1,400 square feet, carry up to 5,000 SKUs and are located in enclosed malls, upscale street locations
and specialty retail centers. The retail channels of Free People expose both our wholesale accounts and
retail customers to the full Free People product assortment and store environment. During fiscal 2009,
we circulated approximately 6.7 million catalogs and plan to expand circulation to approximately
7.4 million catalogs in fiscal 2010. As of January 31, 2009, we operated 30 Free People stores in the
United States, as well as the www.freepeople.com web site and the Free People catalog. We plan to
open approximately 9 new Free People stores in fiscal 2010. Free People retail store sales accounted
for approximately 1.8% of our consolidated net sales for fiscal 2009.
Terrain. Our Terrain concept was released as our fourth brand in fiscal 2008 and we opened our
first store in Glen Mills, Pennsylvania, Terrain at Styers’, in April 2008. Our new concept is designed
to appeal to men and women interested in a creative, sophisticated outdoor living and gardening
experience. Terrain creates a compelling shopping environment, inspired by the ‘greenhouse’. Sites
will be large and free standing. Merchandise includes lifestyle home and garden products combined
with antiques, live plants and flowers. Our Terrain garden center operates approximately 20,000 square
feet of enclosed selling space as well as approximately two acres of outdoor seasonal selling space
used for live plants, accessories and outdoor furniture. Terrain also offers a variety of landscape and
design service solutions. Terrain retail sales accounted for less than 1% of our consolidated net sales
for fiscal 2009. We plan to open one new Terrain garden center in fiscal 2010.
Catalogs and Web Sites
Anthropologie offers a direct-to-consumer catalog that markets select merchandise, most of
which is also available in our Anthropologie stores. During fiscal 2009, Anthropologie circulated
approximately 21.5 million catalogs. We believe the catalog has been instrumental in helping to build
the Anthropologie brand identity with our target customers. We plan to decrease circulation to
approximately 18.4 million catalogs during fiscal 2010, and replace reduced circulation expenditures
with investments in web marketing. We expect the number of catalogs circulated to be consistent over
the next few years.
Anthropologie operates a web site, www.anthropologie.com, which accepts orders directly from
customers. The web site captures the spirit of the store by offering a similar array of apparel,
accessories and household and gift merchandise as found in the stores. As with our catalog, we believe
that the web site increases Anthropologie’s reputation and brand recognition with its target customers
and helps support the traffic of Anthropologie’s store operations.
In March 2003, Urban Outfitters introduced a direct-to-consumer catalog offering select
merchandise, most of which is also available in our Urban Outfitters stores. During fiscal 2009, Urban
Outfitters circulated approximately 12 million catalogs. We believe the catalog has expanded our
distribution channels and increased brand awareness. We plan to maintain circulation of approximately
12 million catalogs during fiscal 2010 and continue to further invest in web marketing initiatives. We
expect the number of catalogs circulated to be consistent over the next few years.
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