Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q4 FY2024 Earnings Presentation
22 slides from Urban Outfitters's earnings presentation, February 2024
Slide 1: FY'24 Q4 Results
Urban Outfitters, Inc. F Y ’ 24 Q4 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2024 fourth quarter commentary ahead of our earnings call scheduled for February 27th at 5:15pm. We remind you that any forward-looking statements made in this commentary are subject to our safe harbor statement found in our SEC filings.
Slide 3: Important Information Regarding Non-GAAP Financial Measures
Important Information Regarding Non-GAAP Financial Measures In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP ”), from time to time our management evaluates and analyzes results and any impact on th
Slide 4: Table of Contents
Table of Contents Key Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Sales by Segment. . . . . . . . . . . . . . . .
Slide 5: Key Financial Highlights
Key Financial Highlights Three Months Ended URBN net sales for the fourth quarter increased by 7% to a record $1.49 billion. URBN adjusted net sales for the fourth quarter increased by 8% to January 31, 2024 January 31, 2023 $1.50 billion. The increase in adjusted net sales was due to a 6% increase
Slide 6: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the fourth quarter ($ in millions) Variance (unaudited) increased by 7% to a record $1.49 billion. Total Company January 31, 2024 January 31, 2023 $ % adjusted net sales increased by 8% to $1.50 billion. URBN Retail segment sales in
Slide 7: Revenue Metrics – Anthropologie
Revenue Metrics Three Months Ended Total Anthropologie sales increased 13% to $680 million ($ in millions) Variance (unaudited) for the quarter. January 31, 2024 January 31, 2023 $ % Retail segment sales increased 13%, with comparable Total Sales $ 679.5 $ 602.9 $ 76.6 13% sales increasing 12%. The
Slide 8: Revenue Metrics – Free People
Revenue Metrics Three Months Ended Total Free People sales increased by 18% to $362 million ($ in millions) Variance (unaudited) for the quarter. This increase was due to an increase January 31, 2024 January 31, 2023 $ % in Retail segment sales of 20% and an 8% increase in Wholesale segment sales. T
Slide 9: Revenue Metrics – Urban Outfitters
Revenue Metrics Three Months Ended Total Urban Outfitters sales decreased by 12% to $373 ($ in millions) Variance (unaudited) million for the quarter. January 31, 2024 January 31, 2023 $ % Retail segment sales decreased 12%, with comparable Total Sales $ 372.6 $ 425.6 $ (53.0) (12%) sales decreasing
Slide 10: Revenue and Subscription Metrics
Revenue and Subscription Metrics Three Months Ended ($ in millions) Variance (unaudited) January 31, 2024 January 31, 2023 $ % Total Sales $ 63.1 $ 42.8 $ 20.3 48% Total Adjusted Sales(a) $ 72.2 $ 42.8 $ 29.4 69% Nuuly Subscribers Nuuly segment adjusted sales for the fourth quarter increased by 200,
Slide 11: Adjusted Gross Profit by Segment
Adjusted Gross Profit by Segment Three Months Ended Adjusted gross profit dollars increased by 20% to $452 million ($ in millions) Variance (unaudited) for the quarter, while adjusted gross profit rate increased 293 bps January 31, 2024 January 31, 2023 $ % to 30.2%. The increase in adjusted gross p
Slide 12: SG&A–Total Company
SG&A–Total Company Three Months Ended Selling general & administrative (‘ SG&A’) expenses ($ in millions) Variance (unaudited) increased by 11% to $370 million while SG&A as a January 31, 2024 January 31, 2023 $ % percentage of adjusted net sales deleveraged by 58 bps to 24.8%. The deleverage in SG&
Slide 13: Adjusted Operating Income by Segment
Adjusted Operating Income by Segment Three Months Ended Adjusted operating income dollars increased by 90% ($ in millions) Variance (unaudited) to $81 million while adjusted operating income rate January 31, 2024 January 31, 2023 $ % increased by 235 bps to 5.4%. The increase in dollars Operating In
Slide 14: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended January 31, 2024 (share count in millions) The adjusted effective tax (unaudited) rate for the fourth quarter As Reported % of Net Sales Total Adjustments Adjusted % of Adjusted Net Sales was 25% compared to an Net Sales (a ) $ 1,486.2 100.
Slide 15: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended January 31, 2023 (share count in millions) (unaudited) As Reported % of Net Sales Total Adjustments Adjusted % of Adjusted Net Sales Net Sales $ 1,384.6 100.0 % $ – $ 1,384.6 100.0% Cost of Sales (excluding Store Impairment) 1,006.8 72.7 –
Slide 16: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of January 31, 2024, cash (unaudited) January 31, 2024 January 31, 2023 and marketable securities totaled $779 million with $0 drawn down Assets on our $350 million asset backed Cash and Cash Equivalents $ 178 $ 201 line of credit facility. Marketable Securit
Slide 17: Cash Flows Summary
Cash Flows Summary ($ in millions) Twelve Months Ended (unaudited) January 31, 2024 January 31, 2023 Cash Flows from Operating Activities Net Income $ 288 $ 160 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation & Amortization 102 1 02 Inventory 39 (22) Pay
Slide 18: Inventory Data
Inventory Data ($ in millions) (unaudited) Cost Variance January 31, 2024 January 31, 2023 $ % URBN Total Inventory $ 550.2 $ 587.5 $ (37.3) (6%) Retail Segment Total Inventory $ 505.2 $ 529.9 $ (24.7) (5%) Retail Segment Comparable Inventory by Brand 401.6 409.5 (7.9) (2%) Anthropologie 198.9 213.8
Slide 19: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 300 5.8% $ 250 Home Office 4.2% 3.9% $ 200 Fulfillment $ 150 Technology $ 100 Stores $ 50 FY’ 22 FY’ 23 FY’ 24 Projected FY’ 25 During the fourth quarter, capital expenditures were $49 million while depreciation & amortization w
Slide 20: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) 140 130 120 110 100 90 FY ’19 FY ’20 FY ’21 FY ’22 FY ’23 FY ’24 Shares Repurchased Number of Shares 3.5 8.1 0.5 2.0 4.7 – Total Cost $ 121 $ 217 $7 $ 56 $ 112 – The Company did not repurchase any shares during the quarter. The
Slide 21: Global Retail Stores Summary
Global Retail Stores Summary YTD FY’24 Projected FY’25 Projected Open as of Open as of Projected Projected Open as of January 31, 2023 Openings Closings January 31, 2024 Openings Closings January 31, 2025 Anthropologie NA 217 7 6 218 14 6 226 Anthropologie EU 21 – 2 19 – – 19 Total Anthropologie 238
Slide 22: 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‘23 Q1 Store Count 237 174 262 11 684 Selling SF 1,810 368 2,270 n/a 4,448 Q2 Store Count 239 183 261 11 694 Selling SF 1,821 384 2,263 n/a 4,468 Q3 Store Count 241