Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q3 FY2020 Earnings Presentation
18 slides from Urban Outfitters's earnings presentation, November 2019
Slide 1: FY'20 Q3 Results
Urban Outfitters, Inc. F Y ’ 20 Q3 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2020 third quarter commentary ahead of our earnings call scheduled for November 19th 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: 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 increased by 1% to $987 million. The increase in sales was driven by Retail segment sales comp of 3% and $2 million of Subscription segment October 31, 2019 October 31, 2018 sales which were partially offset by a Wholesale
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the third quarter ($ in millions) Variance (unaudited) increased by 1% to $987 million. The sales growth October 31, 2019 October 31, 2018 $ % was due to Retail segment comp increase of 3% and Total Sales $ 987.5 $ 973.5 $ 14.0 1% $
Slide 6: Revenue Metrics: Anthropologie Group
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group brand sales increased (unaudited) by 4% to $399 million. The growth in brand sales October 31, 2019 October 31, 2018 $ % was driven by a 4% increase in Retail segment comp Total Sales $ 398.7 $ 385.0 $ 13.7 4% and
Slide 7: Revenue Metrics: Free People
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales increased by 2% to (unaudited) $205 million for the quarter. This increase was October 31, 2019 October 31, 2018 $ % driven by a strong Retail segment sales comp of Total Sales $ 205.5 $ 202.2 $ 3.3 2% 9% and n
Slide 8: Revenue Metrics: Urban Outfitters
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales decreased by 1% as a ($ in millions) Variance (unaudited) result of a $4 million decline in non-comp sales, and a flat October 31, 2019 October 31, 2018 $ % Retail segment sales comp. Wholesale segment sales of the UO BDG brand de
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Total Company gross profit decreased 5% to $321 million, ($ in millions) Variance (unaudited) while the gross profit rate declined by 217 basis points to October 31, 2019 October 31, 2018 $ % 32.5%. The decline in the total Company gross profit rate was dri
Slide 10: SG&A–Total Company
SG&A–Total Company ($ in millions) Three Months Ended Variance Total Company SG&A increased 2% to $246 (unaudited) million. Total Company SG&A as a percentage of October 31, 2019 October 31, 2018 $ % sales increased by 11 bps to 24.9%. The deleverage SG&A* $’s $ 245.8 $ 241.3 $ 4.5 2% in SG&A as a r
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income decreased by 22% to $75 million, ($ in millions) Variance (unaudited) while operating profit margin deleveraged by 228 basis October 31, 2019 October 31, 2018 $ % points to 7.6%. The decline in operating profit margin was driven by the
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate (unaudited) for the third quarter was October 31, 2019 October 31, 2018 26.6%. The increase Net Sales $ 987.5 $ 973.5 from the prior year is pri- marily due to the ratio of Cost of Sales 666.4 635.8 foreign taxable pr
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Inventory increased 18% to $532 (unaudited) October 31, 2019 October 31, 2018 million, driven by a 9% increase in Retail segment comp inventory Assets and a 63% increase in Wholesale Cash and Cash Equivalents $ 167 $ 329 segment inventory. The increase in Retail
Slide 14: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance October 31, 2019 October 31, 2018 $ % URBN Inventory $ 531.6 $ 451.7 $ 79.9 18% Retail Segment Comparable Inventory at Cost $ 405.4 $ 372.0 $33.4 9% Anthropologie Group 197.1 179.9 17.2 10% Free People 50.5 45.4 5.1 11% Urban Outfitters 157.8 146.7
Slide 15: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 250 Home Office $ 200 Fulfillment 4.1% $ 150 2.9% Technology 2.3% $ 100 Stores $ 50 FY’ 17 FY’ 18 FY’ 19 Projected FY’ 20 During the third quarter, capital expenditures were $55 million, while depreciation & amortization was $28
Slide 16: Shares Outstanding
Shares Outstanding (share count in millions) ($ in millions) (unaudited) Ending Shares Outstanding 140 130 120 110 100 90 Q 1 Q2 Q3 FY ’15 FY ’16 FY ’17 FY ’18 FY ’19 FY ’20 Shares Repurchased Number of Shares 17.4 15.0 1.3 8.1 3.5 8.1 Total Cost $ 611 $ 465 $ 46 $ 157 $ 121 $ 217 The Company did no
Slide 17: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q3 FY’20 Projected Q4 FY’20 Projected Open as of Open as of Projected Projected Open as of January 31, 2019 Openings Closings October 31, 2019 Openings Closings January 31, 2020 Anthropologie Group NA 216 – 2 214 – 5 209 Anthropologie Group EU 11 6 – 17 5 – 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 F&B URBN * FY‘ 19 Q1 Store Count 226 134 246 10 616 Selling SF 1,733 291 2,208 n/a 4,232 Q2 Store Count 227 135 246 10 618 Selling SF 1,750 298 2,208 n/a 4,256 Q3 Store Count 228 13