Urban Outfitters 2011 Annual Report Download - page 41

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Seasonality and Quarterly Results
The following tables set forth our net sales, gross profit, net income and net income per common
share (basic and diluted) for each quarter during the last two fiscal years and the amount of such net
sales and net income, respectively, as a percentage of annual net sales and annual net income. The
unaudited financial information has been prepared in accordance with accounting principles generally
accepted in the United States for interim financial information and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been included.
Fiscal 2011 Quarter Ended (1)
April 30,
2010
July 31,
2010
Oct. 31,
2010
Jan. 31,
2011
(dollars in thousands, except per share data)
Net sales ..................................... $479,961 $552,159 $573,592 $668,390
Gross profit ................................... 200,786 234,781 235,993 265,060
Net income ................................... 52,957 71,657 73,106 75,238
Net income per common share—basic .............. 0.31 0.42 0.44 0.46
Net income per common share—diluted ............ 0.31 0.42 0.43 0.45
As a Percentage of Fiscal Year:
Net sales ..................................... 21% 24% 25% 30%
Net income ................................... 19% 26% 27% 28%
Fiscal 2010 Quarter Ended (1)
April 30,
2009
July 31,
2009
Oct. 31,
2009
Jan. 31,
2010
(dollars in thousands, except per share data)
Net sales ..................................... $384,796 $458,626 $505,900 $588,493
Gross profit ................................... 143,305 187,091 210,088 245,661
Net income ................................... 30,805 49,021 62,392 77,675
Net income per common share—basic .............. 0.18 0.29 0.37 0.46
Net income per common share—diluted ............ 0.18 0.29 0.36 0.45
As a Percentage of Fiscal Year:
Net sales ..................................... 20% 24% 26% 30%
Net income ................................... 14% 22% 29% 35%
(1) The sum of the quarterly per share amounts may not equal per share amounts reported for
year-to-date periods. This is due to changes in the number of weighted average shares outstanding
and the effects of rounding for each period.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to the following types of market risks—fluctuations in the purchase
price of merchandise, as well as other goods and services; the value of foreign currencies in relation to
the U.S. dollar; and changes in interest rates. Due to the Company’s inventory turnover rate and its
historical ability to pass through the impact of any generalized changes in its cost of goods to its
customers through pricing adjustments, commodity and other product risks are not expected to be
material. The 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.
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