Urban Outfitters Has Strong Q3, Renegotiates Leases

PHILADELPHIA-There is some good news in the retail world this fall coming from a chain other than Wal-Mart. Urban Outfitters posted sharp increases in its sales and earnings during its third quarter.

Urban’s earnings shot up 31%, hitting $59 million. Net sales rose 46%, to $478 million, while same-store sales were up 10% at the company’s three primary chains. At its 140 namesake units, comps rose 17% year over year. Its 118 Anthropologie stores inched up 2%; comps at its 27 Free People locations rose 4%.

Management said during its Q3 earnings call that it could use this strong financial leverage in dealing with landlords. “We are going to go back to reviewing leases,” says Tedford Marlow, president of the company’s urban retail division. “Of all the retailers out there we have the better opportunity of extracting some rent reductions.”