Urban Outfitters 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 Urban Outfitters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 79

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
ÈANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended January 31, 2010
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 000-22754
URBAN OUTFITTERS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 23-2003332
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
5000 South Broad Street, Philadelphia, PA 19112-1495
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (215) 454-5500
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Exchange on Which Registered
Common Shares, $.0001 par value The NASDAQ Global Select Market LLC
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by checkmark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act. Yes ÈNo
Indicate by checkmark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)
of the Act. Yes No È
Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ÈNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate
website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post
such files). Yes No
Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated
filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ÈAccelerated filer
Non-accelerated filer (Do not check if a smaller reporting company) Smaller reporting company
Indicate by a checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). Yes No È
The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by
reference to the price at which the common equity was last sold, or the average bid and asked price of such common
equity, as of the last business day of the registrant’s most recently completed second fiscal quarter, was $3,087,566,534.
The number of shares outstanding of the registrant’s common stock on March 26, 2010 was 168,888,271.
DOCUMENTS INCORPORATED BY REFERENCE
Certain information required by Items 10, 11, 12, 13 and 14 is incorporated by reference into Part III hereof
from portions of the Proxy Statement for the registrant’s 2010 Annual Meeting of Shareholders.

Table of contents

  • Page 1
    ... FORM 10-K URBAN OUTFITTERS, INC. (Exact Name of Registrant as Specified in Its Charter) Pennsylvania (State or Other Jurisdiction of Incorporation or Organization) 23-2003332 (I.R.S. Employer Identification No.) 5000 South Broad Street, Philadelphia, PA (Address of Principal Executive Offices...

  • Page 2
    .... Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters ...Certain Relationships and Related Transactions, and Director Independence ...Principal Accountant Fees and Services...

  • Page 3
    ... the Urban Outfitters, Anthropologie, Free People and Terrain brands. We also operate a wholesale segment under the Free People and Leifsdottir brands. We have over 39 years of experience creating and managing retail stores that offer highly differentiated collections of fashion apparel, accessories...

  • Page 4
    ... retail centers, upscale street locations and enclosed malls. As of January 31, 2010, we operated 137 Anthropologie stores in North America and Europe, as well as the www.anthropologie.com web site and the Anthropologie catalog. We plan to open approximately 17 Anthropologie stores in fiscal 2011...

  • Page 5
    ...web site and the Free People catalog. We plan to open approximately 9 new Free People stores in fiscal 2011. Free People retail store sales accounted for approximately 2.0% of our consolidated net sales for fiscal 2010. Terrain. Terrain is designed to appeal to men and women interested in a creative...

  • Page 6
    ... services of list rental companies to identify potential customers that will receive future catalogs. We plan on increasing our spending on investments in web marketing for Urban Outfitters, Anthropologie, Free People and Terrain in fiscal 2011. These increases will be based on our daily evaluation...

  • Page 7
    ... of consolidated net sales for fiscal 2010. In addition to selling its merchandise to specialty retailers, Free People wholesale also shares production sourcing with our retail segment. Free People employs its own senior and creative management staff, but shares business support services with the...

  • Page 8
    ..., including internet music, video, film, magazines and pop culture. Merchandise Our Urban Outfitters stores, web sites and catalogs offer a wide array of eclectic merchandise, including women's and men's fashion apparel, footwear and accessories, and apartment wares and gifts. Product offerings in...

  • Page 9
    ... target customers. Our Free People retail stores include a store manager, a visual coordinator and full and part-time sales staff. A Terrain garden center may also include merchandise care and maintenance staff. An essential requirement for the success of our stores is our ability to attract, train...

  • Page 10
    ... daily updates of sales, inventory data and price changes. Our direct-to-consumer operations, which include the Anthropologie, Free People and Urban Outfitters catalogs and the Anthropologie, Free People, Urban Outfitters and Terrain retail web sites, maintain separate software systems that manage...

  • Page 11
    ..., and availability of merchandise, the level of customer service offered and merchandise price. Although we feel the eclectic mix of products offered in our retail stores helps differentiate us, it also means that our Urban Outfitters, Anthropologie, Free People and Terrain stores compete against...

  • Page 12
    ... key competitive factors for our direct-to-consumer operations include the success or effectiveness of customer mailing lists, response rates, catalog presentation, merchandise delivery and web site design and availability. Our direct-to-consumer operations compete against numerous catalogs and web...

  • Page 13
    ... lead times in the manufacture and sale of its apparel. Our fashion decisions constitute a material risk and may have an adverse effect on our financial condition and results of operations. We may not be successful in expanding our business and opening new retail stores. Our growth strategy depends...

  • Page 14
    ... worldwide to support our retail and wholesale business segments in the United States, Western Europe and Canada, and for fulfillment of catalog and web site orders. The merchandise purchased for our United States and Canadian retail operation is shipped directly to our distribution centers in...

  • Page 15
    fulfillment center in Trenton, South Carolina. The merchandise purchased for our Western Europe retail and direct-to-consumer operations is shipped to Essex, England. If any of our distribution centers were to close for any reason, the other distribution centers may not be able to support the ...

  • Page 16
    ...on our business, financial condition and results of operations. We may not be successful in introducing additional store concepts. We may, from time to time, seek to develop and introduce new concepts or brands in addition to our existing Urban Outfitters, Anthropologie, Free People, Leifsdottir and...

  • Page 17
    ...technological change, diversion of sales from our stores, liability for online content, violations of state or federal laws, including those relating to online privacy, credit card fraud, risks related to the failure of the computer systems that operate our websites and their related support systems...

  • Page 18
    ... being depreciated based on the useful life of the improvements and fixtures. In fiscal 2010, we have begun a 54,000 square foot expansion of our home office. We expect this expansion to be complete in fiscal 2011. Our customer contact center is located in Trenton, South Carolina as part of our 459...

  • Page 19
    ... space to sell seasonal, live plants, accessories and outdoor furniture. The average store selling square feet is approximately 9,000 for Urban Outfitters, 7,400 for Anthropologie and 1,400 for Free People. Selling square feet can sometimes change due to floor moves, use of staircases, cash register...

  • Page 20
    ... Henderson Las Vegas New Jersey Edgewater Marlton Montclair North Brunswick Princeton Short Hills Shrewsbury Woodcliff Lake New Mexico Albuquerque New York Garden City Greenvale New York Union Square SoHo Rockefeller Center Victor White Plains North Carolina Charlotte Northlake Mall SouthPark Mall...

  • Page 21
    ... Dedham Texas Austin Dallas Virginia Arlington McLean Washington Bellevue Seattle Terrain Garden Center LOCATION Pennsylvania Glen Mills In addition to the stores listed above, Free People also operates wholesale sales and showroom facilities in New York City, Los Angeles and Chicago that...

  • Page 22
    ... the reported high and low closing sale prices for our common shares as reported on the NASDAQ Global Select Market. Market Information High Low Fiscal 2010 Quarter ended April 30, 2009 ...Quarter ended July 31, 2009 ...Quarter ended October 31, 2009 ...Quarter ended January 31, 2010 ...Fiscal 2009...

  • Page 23
    ...future performance of the common shares or the referenced indices. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Urban Outfitters Inc., The S&P 500 ...years ending January 31. Base Period Jan-05 INDEXED RETURNS Years Ended Jan-07 Jan-08 Jan-09 Company / Index Jan-06 Jan-10 Urban Outfitters...

  • Page 24
    ..., stock split, share consideration or similar change in our capitalization. (2) Weighted average exercise price does not take into account performance stock unit awards. Item 6. Selected Financial Data The following table sets forth selected consolidated income statement and balance sheet data for...

  • Page 25
    ... we opened 13 new Urban Outfitters stores, 12 of which are located within the United States and 1 which is located in Europe. Urban Outfitters targets young adults aged 18 to 30 through a unique merchandise mix and compelling store environment. Our product offering includes women's and men's fashion...

  • Page 26
    ... net sales for fiscal 2010. We operated 34 Free People stores as of January 31, 2010, all of which are located in the United States. During fiscal 2010 we opened 4 new Free People stores. Free People primarily offers private label branded merchandise targeted to young contemporary women aged...

  • Page 27
    ... services of list rental companies to identify potential customers that will receive future catalogs. We plan on increasing our spending on investments in web marketing for Urban Outfitters, Anthropologie and Free People in fiscal 2011. These increases will be based on our ongoing daily evaluation...

  • Page 28
    ..., Urban Outfitters and our own Free People stores. Free People wholesale sales accounted for approximately 4.9% of consolidated net sales for fiscal 2010. The Leifsdottir wholesale division was established in fiscal 2009. Leifsdottir designs, develops and markets sophisticated women's contemporary...

  • Page 29
    ...performed in order to determine if inventory is properly stated at the lower of cost or market. Factors related to current inventories such as future consumer demand and fashion trends, current aging, current and anticipated retail markdowns or wholesale discounts, and class or type of inventory are...

  • Page 30
    ...stores may take time to generate positive operating and cash flow results. Factors such as store type (e.g., mall versus free-standing), store location (e.g., urban area versus college campus or suburb), current marketplace awareness of our brands, local customer demographic data and current fashion...

  • Page 31
    ... to time, we are named as a defendant in legal actions arising from our normal business activities. We account for contingencies such as these in accordance with generally accepted accounting principles in the United States. We are required to record an estimated loss contingency when information...

  • Page 32
    ... in comparable store net sales and $24 million of foreign currency translation adjustments. The decrease in comparable store net sales was comprised of 0.6%, 11.0% and 4.0% decreases at Anthropologie, Free People and Urban Outfitters, respectively. The decline in our wholesale segment net sales was...

  • Page 33
    ... web sites, which more than offset decreases in conversion rate and average order value. Catalog circulation across all brands decreased by 3 million or 8.2%. The decrease in Free People wholesale net sales was driven by decreases in transactions and average unit sale prices. Leifsdottir wholesale...

  • Page 34
    ... year primarily due to increased traffic to our web sites, that more than offset minor decreases in conversion rate and average order value. Circulation modestly increased by 688,000 catalogs or 1.7%. The increase in Free People wholesale net sales was driven by increased average unit sale prices...

  • Page 35
    ... 2010, 2009 and 2008 were $109 million, $109 million and $92 million respectively, and were primarily used to expand and support our store base. During fiscal 2011, we plan to construct and open approximately 45 new stores, renovate certain existing stores, complete an expansion of our home office...

  • Page 36
    ... locations to adjust the minimum rental due to the current market rate multiple times during the term. The table above includes our best estimate of the future payments for these locations. Amounts noted above include commitments for 22 executed leases for stores not opened as of January 31, 2010...

  • Page 37
    ... (1) Consists primarily of outstanding letter of credit commitments in connection with import inventory purchases. Off-Balance Sheet Arrangements As of and for the three years ended January 31, 2010, except for operating leases entered into in the normal course of business, we were not party to any...

  • Page 38
    ...Company purchases the majority of its merchandise in U.S. dollars, including a portion of the goods for its stores located in Canada and Europe. The Company's exposure to market risk for changes in interest rates relates to its cash, cash equivalents and marketable securities. As of January 31, 2010...

  • Page 39
    ... associated with these failed auctions will not be available until either a successful auction occurs, the bond is called by the issuer, a buyer is found from outside the auction process, or the debt obligation reaches its maturity. Based on review of credit quality, collateralization, final stated...

  • Page 40
    ... public accounting firm, as stated in their report that is included on page 39 of this annual report on Form 10-K. Changes in Internal Control Over Financial Reporting There were no changes in the Company's internal control over financial reporting during the Company's fourth quarter of fiscal 2010...

  • Page 41
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Urban Outfitters, Inc. Philadelphia, Pennsylvania We have audited the internal control over financial reporting of Urban Outfitters, Inc. and subsidiaries (the "Company") as of January 31, 2010, based on...

  • Page 42
    ... of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Company as of January 31, 2010, and the related consolidated statements of income, shareholders' equity, and cash flows for the year then ended and our report dated March 31, 2010 expressed an...

  • Page 43
    ...of Directors and President Director and Chief Executive Officer Chief Financial Officer General Counsel and Secretary President, Urban Outfitters Brand Co-President, Anthropologie Brand Co-President, Anthropologie Brand Chief Administrative Officer President, Free People Controller Director Director...

  • Page 44
    ... joined Urban Outfitters in March 2007 as Director of Finance and SEC Reporting and has been Controller since February 2009. Prior to joining the Company, Mr. Conforti, a Certified Public Accountant, worked for AlliedBarton Security Services, LLC for five years serving as Controller for three years...

  • Page 45
    ... and service businesses. Code of Conduct and Ethics We have had a written code of conduct for a number of years. Our Code of Conduct and Ethics applies to our Directors and employees, including our President, Chief Executive Officer, Chief Financial Officer and Principal Accounting Officer. The...

  • Page 46
    ... by reference from the Company's Proxy Statement for the 2010 Annual Meeting of Shareholders. Item 14. Principal Accountant Fees and Services Information required by this item is incorporated herein by reference from the Company's Proxy Statement for the 2010 Annual Meeting of Shareholders. 44

  • Page 47
    ... and Restated Bylaws are incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed on March 2, 2009. Amended and Restated Credit Agreement by and among Urban Outfitters, Inc. and Wachovia Bank, National Association is incorporated by reference to Exhibit 10.1 of the...

  • Page 48
    ...on Schedule 14A filed on April 1, 2010. Form of 2004 Plan-Non-Qualified Stock Option Agreement is incorporated by reference to Exhibit 99.1 of the Company's Current Report on Form 8-K filed on June 18, 2009. Form of 2004 Plan-Non-Employee Director Non-Qualified Stock Option Agreement is incorporated...

  • Page 49
    ...President and Director Chief Executive Officer and Director April 1, 2010 /s/ GLEN T. SENK April 1, 2010 Glen T. Senk (Principal Executive Officer) /s/ ERIC ARTZ Chief Financial Officer April 1, 2010 Eric Artz (Principal Financial Officer) /s/ FRANK J. CONFORTI Controller April 1, 2010...

  • Page 50
    ...Report of Independent Registered Public Accounting Firm-Deloitte & Touche LLP ...Consolidated Balance Sheets as of January 31, 2010 and January 31, 2009 ...Consolidated Statements of Income for the fiscal years ended January 31, 2010, 2009 and 2008 ...Consolidated Statements of Shareholders' Equity...

  • Page 51
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Urban Outfitters, Inc. Philadelphia, Pennsylvania We have audited the accompanying consolidated balance sheets of Urban Outfitters, Inc. and subsidiaries (the "Company") as of January 31, 2010 and ...

  • Page 52
    URBAN OUTFITTERS, INC. Consolidated Balance Sheets (in thousands, except share and per share data) January 31, 2010 2009 ASSETS Current assets: Cash and cash equivalents ...Marketable securities ...Accounts receivable, net of allowance for doubtful accounts of $1,284 and $1,229, respectively ......

  • Page 53
    URBAN OUTFITTERS, INC. Consolidated Statements of Income (in thousands, except share and per share data) 2010 Fiscal Year Ended January 31, 2009 2008 Net sales ...Cost of sales, including certain buying, distribution and occupancy costs ...Gross profit ...Selling, general and administrative ...

  • Page 54
    URBAN OUTFITTERS, INC. Consolidated Statements of Shareholders' Equity (in thousands, except share data) Accumulated Other Comprehensive Income (Loss) Comprehensive Income Common Shares Additional Number of Par Paid-in Shares Value Capital Retained Earnings Total Balances as of February 1, 2007...

  • Page 55
    ...securities ...Sales and maturities of marketable securities ...Net cash used in investing activities ...Cash flows from financing activities: Exercise of stock options ...Excess tax benefit from stock option exercises ...Net cash provided by financing activities ...Effect of exchange rate changes on...

  • Page 56
    ... operation of a general consumer product retail and wholesale business selling to customers through various channels including retail stores, three catalogs and five web sites. As of January 31, 2010 and 2009, the Company operated 327 and 294 stores, respectively. Stores located in the United States...

  • Page 57
    ... than one year from the balance sheet date. Available for sale securities such as Auction Rate Securities ("ARS") that fail at auction and do not liquidate under normal course are classified as long term assets, any successful auctions would be classified as current assets. Marketable securities as...

  • Page 58
    ...performed in order to determine if inventory is properly stated at the lower of cost or market. Factors related to current inventories such as future consumer demand and fashion trends, current aging, current and anticipated retail markdowns or wholesale discounts, and class or type of inventory are...

  • Page 59
    ... job or service for landscape sales. Revenue is presented on a net basis and does not include any tax assessed by a governmental or municipal authority. Payment for merchandise at stores and through the Company's direct-to-consumer business is tendered by cash, check, credit card, debit card or gift...

  • Page 60
    ...: the cost of merchandise; merchandise markdowns; obsolescence and shrink; store occupancy costs including rent and depreciation; customer shipping expense for direct-to-consumer orders; in-bound and outbound freight; U.S. Customs related taxes and duties; inventory acquisition and purchasing costs...

  • Page 61
    ...production of photographic images used in our catalogs and on our web sites. These costs are amortized over the period in which the customer responds to the marketing material determined based on historical customer response trends to a similar season's advertisement. Amortization rates are reviewed...

  • Page 62
    ...-party credit cards are processed by financial institutions, which are monitored for financial stability. The Company periodically evaluates the financial condition of its wholesale segment customers. The Company's allowance for doubtful accounts reflects current market conditions and management...

  • Page 63
    ... changes in risk exposure due to that involvement. The provisions of ASC Topic 810 are effective for fiscal years beginning after November 15, 2009. The Company plans to adopt these provisions in fiscal 2011 and anticipates the adoption to have no effect on its financial condition, results...

  • Page 64
    ...periods shown, marketable securities are classified as available-for-sale. The amortized cost, gross unrealized gains (losses) and fair values of available-for-sale securities by major security type and class of security as of January 31, 2010 and 2009 are as follows: Amortized Cost Unrealized Gains...

  • Page 65
    ... as of January 31, 2010 and 2009 was $4,120 and $5,283, respectively. The Company deemed all of these securities as temporarily impaired. The unrealized loss positions were primarily due to auction failures of the ARS held and fluctuations in the market interest rates for remaining securities. The...

  • Page 66
    ... directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity's own assumptions. • Management...

  • Page 67
    ... rates and valuation models. As a result of this review, the Company determined its ARS to have a temporary impairment of $4,120 and $5,283 as of January 31, 2010 and January 31, 2009, respectively. The estimated fair values could change significantly based on future market conditions. The Company...

  • Page 68
    ... consist of the following: January 31, 2010 2009 Accrued rents and estimated property taxes ...Gift certificates and merchandise credits ...Accrued construction ...Accrued income taxes ...Accrued sales taxes ...Accrued payroll taxes ...Sales return reserve ...Other current liabilities ...Total...

  • Page 69
    ... 31, 2010 and January 31, 2009, respectively. The available credit, including the accordion feature under the Line was $63,719 and $64,861 as of January 31, 2010 and January 31, 2009, respectively. The Company believes the renewed Line will satisfy its letter of credit needs through fiscal 2011. The...

  • Page 70
    ...: January 31, 2010 2009 Deferred tax liabilities: Prepaid expenses ...Depreciation ...Gross deferred tax liabilities ...Deferred tax assets: Deferred rent ...Inventories ...Accounts receivable ...Net operating loss carryforwards ...Tax uncertainties ...Accrued salaries and benefits, and other...

  • Page 71
    ...31, 2010 and 2009, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In January 2010, the Company received an examination report from the IRS setting forth proposed adjustments to the Company's U.S. income tax returns for...

  • Page 72
    ... risk-free rate of interest, volatility and exercise rate to vary over time reflecting a more realistic pattern of economic and behavioral occurrences. The Company uses historical data on exercise timing to determine the expected life assumption. The decrease in the expected life in fiscal year 2009...

  • Page 73
    ... Year Ended January 31, 2010 2009 2008 (In thousands, except per share data) Weighted-average fair value of options granted per share ...Intrinsic value of options exercised ...Cash received from option exercises ...Actual tax benefit realized for tax deductions from option exercises ...Information...

  • Page 74
    ....09 37.31 19.12 (1) Options included in this range contain certain restrictions on the sale of the stock which expire in November 2010. Non-vested Shares The Company may make non-vested share awards to employees, non-employee directors and consultants. A non-vested share award is an award of common...

  • Page 75
    ... average period of 1.3 years. In November 2009, the Company granted an award of 1,000,000 PSU's ("Grant E"). These PSU's are subject to a performance period of seven years and are subject to various company performance targets and external market conditions. If any of these targets are not met, the...

  • Page 76
    ...executed leases for stores not opened as of January 31, 2010. The majority of our leases allow for renewal options between five and ten years upon expiration of the initial lease term. The store leases generally provide for payment of direct operating costs including real estate taxes. Certain store...

  • Page 77
    ... Company's matching contribution vests at 20% per year of employee service. The Company's contributions were $1,171, $1,090 and $969 for fiscal years 2010, 2009 and 2008, respectively. Contingencies The Company is party to various legal proceedings arising from normal business activities. Management...

  • Page 78
    ... "Anthropologie," "Free People" and "Terrain" and includes their direct marketing campaigns which consist of three catalogs and five web sites as of January 31, 2010. Our Retail stores and their direct marketing campaigns are considered operating segments. Net sales from the Retail segment accounted...

  • Page 79
    ... Accounting Policies." Both the retail and wholesale segments are highly diversified. No customer comprises more than 10% of sales. A summary of the information about the Company's operations by segment is as follows: 2010 Net sales Retail operations ...Wholesale operations ...Intersegment...