Urban Outfitters looks good as profits double

Urban Outfitters, the US fashion retailer with a cooler-than-thou attitude, proved today that it is still impressing the British shopper.

The chain, which has three shops in central London and one at Bluewater in Kent, grew sales by a third at its European arm to £56.7 million in the year to the end of January. Profits before tax more than doubled on the previous year to £5.2 million.

But the retailer, which stocks labels such as Luella and See by Chloe alongside its own menswear and womenswear collections, admitted that trading had been tougher in the second half of the financial year as the recession forced its customers to rein in spending. Margins have also been squeezed as it cut prices to clear stock.

Internet sales have been booming, however, reaching £4.8 million, or 8.5% of the group's turnover.