When I stopped by the Washington, D.C., outlet of Urban Outfitters
Fourth-quarter earnings at Urban Outfitters rocketed ahead 72% to $31.7 million, or $0.38 per diluted share. Net sales increased 43% to $251.6 million. Meanwhile, same-store sales leapt 13%. Urban Outfitters runs not only its namesake stores but also the Anthropologie and Free People shops; same-store sales increased 10% at Urban Outfitters and a very impressive 17% and 58% at Anthropologie and Free People, respectively.
Reminiscent of another hot retailer, Chico's
That's because there are several aspects that hint at quality. Urban Outfitters has a nice stockpile of cash, so it can fund its expansion without debt. (Expansion through debt is a mistake that Motley Fool Stock Advisor pick Gap
A few months ago, Urban Outfitters gave investors the chills by warning that growth may slow this year. That's not shocking when you consider that the company had a great 2004, and it means the company faces some tough comparisons now that 2005 is under way. However, Urban Outfitters has a great track record of appealing to kids and young adults, and so far, it seems to be doing quite well at expanding its appeal to more-mature markets with Anthropologie.
Of course, investing is about looking ahead. Given that Urban Outfitters seems to stay hot and still has a lot of room to grow, today's numbers still point to a pretty hip investment.
I've taken a look at Urban Outfitters a few times before. For a refresher, see:
Or, catch up with Fool community members who are actively discussing Urban Outfitters' earnings and outlook at the moment on our Urban Outfitters discussion board.
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Alyce Lomax does not own shares of any of the companies mentioned.