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Segment Reporting
 3 Months Ended
Apr. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting

10. Segment Reporting

The Company is a global retailer of lifestyle-oriented general merchandise with two reporting segments—"Retail" and "Wholesale." The Company's Retail segment consists of the aggregation of its five brands operating through 443 stores under the retail names "Urban Outfitters," "Anthropologie," "Free People," "Terrain" and "BHLDN" and includes their direct marketing campaigns, which consist of five catalogs and nine web sites as of April 30, 2012. Our Retail stores and their direct marketing campaigns are considered an operating segment. Net sales from the Retail segment accounted for more than 94% of total consolidated net sales for the three months ended April 30, 2012 and April 30, 2011, respectively. The remainder is derived from the Company's Wholesale segment that distributes apparel to its retail segment and to approximately 1,400 better department and specialty retailers worldwide.

The Company has aggregated its retail stores and associated direct marketing campaigns into a Retail segment based upon their shared management, customer base and economic characteristics. Reporting in this format provides management with the financial information necessary to evaluate the success of the segments and the overall business. The Company evaluates the performance of the segments based on the net sales and pre-tax income from operations (excluding inter-company charges) of the segment. Corporate expenses include expenses incurred and directed by the corporate office that are not allocated to segments. The principal identifiable assets for each operating segment are inventories and property and equipment. Other assets are comprised primarily of general corporate assets, which principally consist of cash and cash equivalents, marketable securities, deferred taxes and prepaid expenses which are typically not allocated to the Company's segments. The Company accounts for inter-segment sales and transfers as if the sales and transfers were made to third parties making similar volume purchases.

The accounting policies of the operating segments are the same as the policies described in Note 2, "Summary of Significant Accounting Policies", in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2012. Both the Retail and Wholesale segments are highly diversified. No one customer comprises more than 10% of the Company's total consolidated net sales. A summary of the information about the Company's operations by segment is as follows:

 

     April 30,
2012		      January 31,
2012		      April 30,
2011		  

Inventories

         

Retail operations

    $ 285,562       $ 237,825       $ 251,935   

Wholesale operations

      14,188         12,248         12,343   
  

 

 

     

 

 

     

 

 

  

Total inventories

    $ 299,750       $ 250,073       $ 264,278   
  

 

 

     

 

 

     

 

 

  

Property and equipment, net

         

Retail operations

    $ 708,635       $ 681,501       $ 597,600   

Wholesale operations

      3,297         3,478         3,649   
  

 

 

     

 

 

     

 

 

  

Total property and equipment, net

    $ 711,932       $ 684,979       $ 601,249   
  

 

 

     

 

 

     

 

 

  

 

     Three Months Ended
April 30,		  
     2012     2011  

Net sales

     

Retail operations

    $ 537,746      $ 493,462   

Wholesale operations

      32,579        31,583   

Intersegment elimination

      (1,395 )      (1,026 ) 
  

 

 

    

 

 

  

Total net sales

    $ 568,930      $ 524,019   
  

 

 

    

 

 

  

Income from operations

     

Retail operations

    $ 52,907      $ 62,968   

Wholesale operations (1)

     7,994        2,958   

Intersegment elimination

      (146 )      (71 ) 
  

 

 

    

 

 

  

Total segment operating income

      60,755        65,855   

General corporate expenses

      (7,840 )      (7,018 ) 
  

 

 

    

 

 

  

Total income from operations

    $ 52,915      $ 58,836   
  

 

 

    

 

 

  
(1)

Increase in Wholesale segment income from operations for the three months ended April 30, 2012 as compared to the prior year comparable period was principally due to one-time charges included in the three months ended April 30, 2011 resulting from the discontinuation of wholesale distribution of the Leifsdottir brand, which began in the first quarter of fiscal 2012.

 

The Company has foreign operations in Europe and Canada. Revenues and long-lived assets, based upon the Company's domestic and foreign operations, are as follows:

 

April 30,
2012		      January 31,
2012		      April 30,
2011		  

Property and equipment, net

         

Domestic operations

    $ 570,663       $ 557,512       $ 499,025   

Foreign operations

      141,269         127,467         102,224   
  

 

 

     

 

 

     

 

 

  

Total property and equipment, net

    $ 711,932       $ 684,979       $ 601,249   
  

 

 

     

 

 

     

 

 

  

 

     Three Months Ended
April 30,		  
     2012      2011  

Net sales

      

Domestic operations

    $ 500,608       $ 466,851   

Foreign operations

      68,322         57,168   
  

 

 

     

 

 

  

Total net sales

    $ 568,930       $ 524,019