Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q3 FY2021 Earnings Presentation
18 slides from Urban Outfitters's earnings presentation, November 2020
Slide 1: Urban Outfitters, Inc. FY'21 Q3 Results
Urban Outfitters, Inc. F Y ’ 21 Q3 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2021 third quarter commentary ahead of our earnings call scheduled for Novmber 23rd at 5:00pm. We remind you that any forward-looking statements made in this commentary are subject to our safeharbor statement found in our SEC filings. Ou
Slide 3: Table of Contents
Table of Contents Key Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Sales by Segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 4: Key Financial Highlights
Key Financial Highlights Three Months Ended URBN sales for the third quarter declined by 2% to $970 million. The decrease in sales was due to a 24% decline in Wholesale segment sales, while Retail segment sales October 31, 2020 October 31, 2019 were flat. Retail segment sales comp was also flat. Gro
Slide 5: Sales by Segment
Sales by Segment ($ in millions) Three Months Ended Variance Total Company or URBN sales for the third (unaudited) quarter decreased by 2% to $970 million. URBN October 31, 2020 October 31, 2019 $ % Retail segment sales were flat at $896 million. Total Sales $ 969.6 $ 987.5 $ (17.9) -2% Retail segme
Slide 6: Revenue Metrics: Anthropologie Group
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group brand sales decreased (unaudited) by 10% to $358 million. October 31, 2020 October 31, 2019 $ % Total Sales $ 358.5 $ 398.7 $ (40.2) -10% The decline in Anthropologie sales during the quarter primarily related to a
Slide 7: Revenue Metrics: Free People
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales increased by 1% to (unaudited) $207 million for the quarter. This increase was due October 31, 2020 October 31, 2019 $ % to an impressive increase in Retail segment sales of Total Sales $ 206.7 $ 205.5 $ 1.2 1%
Slide 8: Revenue Metrics: Urban Outfitters
Revenue Metrics ($ in millions) Three Months Ended Variance Total Urban Outfitters brand sales increased by 5% (unaudited) to $394 million for the quarter. October 31, 2020 October 31, 2019 $ % Total Sales $ 394.0 $ 374.5 $ 19.5 5% The increase in Urban Outfitters sales during the quarter was primar
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Total Company gross profit dollars increased by 1% to $323 million ($ in millions) Variance (unaudited) for the quarter, while gross profit rate increased 79 bps to 33.3%. The October 31, 2020 October 31, 2019 $ % increase in gross profit rate was due in pa
Slide 10: SG&A–Total Company
SG&A–Total Company ($ in millions) Three Months Ended Variance SG&A expenses decreased by 9% to $224 million (unaudited) while SG&A as a % of sales leveraged by 175 bps October 31, 2020 October 31, 2019 $ % to 23.1%. The leverage in SG&A as a rate to sales SG&A* $’s $ 224.4 $ 245.8 $ (21.4) -9% was
Slide 11: Operating Income by Segment
Operating Income by Segment ($ in millions) Three Months Ended Variance Operating income dollars increased by 31% to (unaudited) $99 million while operating income rate improved October 31, 2020 October 31, 2019 $ % by 254 bps to 10.2%. The increase in dollars was Operating Income $’s $ 98.5 $ 75.3
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for (share count in millions) the third quarter was 21% (unaudited) October 31, 2020 % of Net Sales October 31, 2019 % of Net Sales compared to 27% in the prior year quarter. The change in Net Sales $ 969.6 100 % $ 98
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of October 31, 2020, (unaudited) October 31, 2020 October 31, 2019 Inventory decreased 8% to Assets $489 million, primarily due Cash and Cash Equivalents $ 625 $ 167 to an 11% decrease in Retail Marketable Securities – 171 segment comp inventory. Accounts Rec
Slide 14: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance October 31, 2020 October 31, 2019 $ % URBN Inventory $ 498.2 $ 531.6 $ (42.4) -8% Retail Segment by Brand $ 450.3 $ 468.8 $ (18.5) -4% Anthropologie Group 206.2 217.4 (11.2) -5% Free People 73.9 61.3 12.6 21% Urban Outfitters 170.2 190.1 (19.9) -10
Slide 15: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 250 Home Office 5.5% $ 200 Fulfillment $ 150 Technology 2.9% $ 100 2.3% Stores $ 50 FY’ 18 FY’ 19 FY’ 20 Projected FY’ 21 During the third quarter, capital expenditures were $17 million while depreciation & amortization was $25
Slide 16: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) Ending Shares Outstanding 140 130 120 110 100 90 Q 1 Q2 Q3 FY ’16 FY ’17 FY ’18 FY ’19 FY ’20 FY ’21 Shares Repurchased Number of Shares 15 1.3 8.1 3.5 8.1 0.5 Total Cost $ 465 $ 46 $ 157 $ 121 $ 217 $7 The Company did not repu
Slide 17: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q3 FY’21 Projected Q4 FY’21 Projected Open as of Open as of Projected Projected Open as of January 31, 2020 Openings Closings October 31, 2020 Openings Closings January 31, 2021 Anthropologie Group NA 211 1 – 212 4 1 215 Anthropologie Group EU 20 2 – 22 – – 22 Total A
Slide 18: Global Store Count & Square Footage
Global Store Count & Square Footage (all data is as of the respective period ended) (Selling SF in thousands) AN FP UO M&V URBN * FY‘20 Q1 Store Count 228 136 245 12 621 Selling SF 1,782 304 2,196 n/a 4,282 Q2 Store Count 228 137 246 11 622 Selling SF 1,782 306 2,203 n/a 4,291 Q3 Store Count 231 143