Initially created to showcase Urban's Free People wholesale line, which sells under shop-within-a-shop concepts at such upscale department stores as Bloomingdale's and Nordstrom and some trendy boutiques, it is now being tested as a third Urban Outfitters' store concept. The Urban Outfitters' spokesperson says preliminary plans, "unconfirmed," call for eight Free People stores by 2006. She declined to disclose any potential locations.

Third-quarter comp-store sales at Anthropologie units increased 22% over the same quarter a year ago. Currently there are 62 units of this brand in the US. They average about 8,500 sf and, according to Black, generate just over $600 sales per sf. They target primarily women between the ages of 30 and 45 with romantic, updated vintage apparel and a mix of tabletop, bed linens, and carefully edited vintage furniture pieces.

There are now 71 Urban Outfitters stores in the US, Canada and Europe. Slightly larger than Anthropologie, they range in size from about 9,000 sf to 10,000 sf, and, according to Black, average roughly $500 in sales per sf. These target a younger demographic, age 18 to 30, and are located primarily in metro areas, often near universities. They contain a mix of about 60% women's apparel, 20% men's apparel, and 20% home furnishings. Third-quarter comp-store sales for this division rose 15% over the same quarter of 2003.

In his newly released report, Black gives thumbs up to the company's expansion plans. Urban Outfitters, he says, has reached about 30% of its potential," and also applauds its shift from unconventional retail spaces to malls. "Mall stores are 14% more productive," he says. Furthermore, he thinks the growing base of US lifestyle centers "underpin strong unit growth for Anthropologie for at least several years."