Net sales at apparel marketer Urban Outfitters and which manages several brands like Anthropologie, Bhldn, Free People, Terrain, for the three months to July 31, 2015 climbed 7 per cent year over year. In a press release, the company said its net sales for the second quarter of fiscal 2016 grew 7 per cent over the same quarter last year to a record $867 million. Comparable retail segment net sales, which include its comparable direct-to-consumer channel, increased 4 per cent. Comparable Retail segment net sales drove up 14 per cent at Free People, 4 per cent at Urban Outfitters and 2 per cent at Anthropologie, while wholesale segment net sales surged 21 per cent. For the reporting quarter, gross profit rate declined 71 basis points versus the prior fiscal second quarter, driven by higher delivery and fulfillment center expenses. As of July 31, 2015, total inventories increased by $22 million, or 6 per cent from a fiscal ago period, which the company attributed to acquisition of inventory to stock new and non-comparable stores. In the same quarter, comparable retail segment inventories decreased 2 per cent at cost while declining 7 per cent in units. For the three months ended July 31, 2015, selling, general and administrative expenses, expressed as a percentage of net sales, increased by 29 basis points. According to Urban Outfitters, the increase was primarily due to increased marketing and technology expenses which drove higher direct-to-consumer traffic. The Company’s effective tax rate for the second quarter of fiscal 2016 was 35.2 per cent compared to 35.5 per cent in the prior fiscal’s comparable period. During the six months ended July 31, 2015, the Company repurchased and subsequently retired 2.3 million shares at a total cost of $82.8 million which completed this authorisation. On July 1, 2015, the Company entered into a five-year $400 million asset-based revolving credit facility with a group of lenders, with JPMorgan Chase Bank N.A. as administrative agent. The new credit facility replaced the Company’s existing $175 million line of credit facility with Wells Fargo Bank, National Association, which was set to expire in March 2019. As of July 31, 2015, borrowings under the new revolving credit facility totaled approximately $115 million and all borrowings under the revolving credit facilities were used to fund the repurchase of common shares. During the six months ended July 31, 2015, the Company opened a total of 13 new stores including; 7 Free People stores, 4 Anthropologie Group stores and 2 Urban Outfitters stores. The Company closed 3 stores during the six months ended July 31, 2015, 2 Urban Outfitters stores and 1 Free People store.
