Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q2 FY2023 Earnings Presentation
19 slides from Urban Outfitters's earnings presentation, August 2022
Slide 1: FY'23 Q2 Results
Urban Outfitters, Inc. F Y ’ 23 Q2 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2023 second quarter commentary ahead of our earnings call scheduled for August 23rd 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. O
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 second quarter increased by 2% to a record $1.18 billion. The increase in sales was due to a $19 million increase in Nuuly segment sales, July 31, 2022 July 31, 2021 1% increase in Retail segment sales and a 1% increase in Wholesale segm
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the second quarter ($ in millions) Variance (unaudited) increased by 2% to a record $1.18 billion. URBN Retail July 31, 2022 July 31, 2021 $ % segment sales increased 1% to $1.10 billion, with comparable sales increasing 1%. Retail
Slide 6: Revenue Metrics
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased 6% to ($ in millions) Variance (unaudited) $479 million for the quarter. July 31, 2022 July 31, 2021 $ % Retail segment sales increased 6%, with comparable sales Total Sales $ 479.2 $ 450.6 $ 28.6 6% increasing 7%. Th
Slide 7: Revenue Metrics
Revenue Metrics Three Months Ended Total Free People Group sales increased by 9% to $271 ($ in millions) Variance (unaudited) million for the quarter. This increase was due to an July 31, 2022 July 31, 2021 $ % increase in Retail segment sales of 10% and a 4% increase in Wholesale segment sales. Tot
Slide 8: Revenue Metrics
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales decreased by 10% to ($ in millions) Variance (unaudited) $396 million for the quarter. July 31, 2022 July 31, 2021 $ % Retail segment sales decreased 10%, with comparable Total Sales $ 396.4 $ 441.6 $ (45.2) (10%) sales decreasing
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars decreased by 14% to $375 million for the ($ in millions) Variance (unaudited) quarter, while gross profit rate decreased 595 bps to 31.7%. July 31, 2022 July 31, 2021 $ % The decrease in gross profit dollars and rate was primarily due t
Slide 10: SG&A–Total Company
SG&A–Total Company Three Months Ended Selling general & administrative (‘SG&A’) expenses ($ in millions) Variance (unaudited) increased by 7% to $289 million while SG&A as a % of July 31, 2022 July 31, 2021 $ % sales deleveraged by 113 bps to 24.4%. The deleverage in SG&A as a rate to sales and grow
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars decreased by 48% to $86 ($ in millions) Variance (unaudited) million while operating income rate decreased by July 31, 2022 July 31, 2021 $ % 708 bps to 7.3%. The decrease in dollars and rate was primarily due to the lower gross
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for the (share count in millions) second quarter was 29% compared (unaudited) July 31, 2022 % of Net Sales July 31, 2021 % of Net Sales to an effective tax rate of 22% in the second quarter of fiscal 2022. Net Sales $
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of July 31, 2022, cash and (unaudited) July 31, 2022 July 31, 2021 marketable securities totaled $404 million with $0 drawn down Assets on our $350 million asset backed Cash and Cash Equivalents $ 92 $ 465 line of credit facility. Marketable Securities 160 15
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Six Months Ended (unaudited) July 31, 2022 July 31, 2021 Cash Flows from Operating Activities Net Income $ 91 $ 181 Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities: Depreciation & Amortization 52 51 Inventory (134) (93) Pa
Slide 15: Inventory Data
Inventory Data ($ in millions) Cost Variance (unaudited) July 31, 2022 July 31, 2021 $ % URBN Total Inventory $ 697.5 $ 483.1 $ 214.4 44% Retail Segment Total Inventory $ 623.6 $ 438.1 $ 185.5 42% Retail Segment Comparable Inventory by Brand 438.3 323.0 115.3 36% Anthropologie Group 216. 4 152.7 63.
Slide 16: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 300 5.8% $ 250 Home Office 5.5% $ 200 Fulfillment 4.6% $ 150 Technology $ 100 Stores $ 50 FY’ 20 FY’ 21 FY’ 22 Projected FY’ 23 During the second quarter, capital expenditures were $26 million while depreciation & amortization w
Slide 17: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) 140 130 120 110 100 90 FY ’18 FY ’19 FY ’20 FY ’21 FY ’22 FY ’23 Shares Repurchased Number of Shares 8.1 3.5 8.1 0.5 2.0 4.7 Total Cost $ 157 $ 121 $ 217 $7 $ 56 $ 112 During the second quarter, the Company repurchased 2.3 mill
Slide 18: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q2 FY’23 Q3–Q4 FY’23 Projected Open as of Open as of Projected Projected Open as of January 31, 2022 Openings Closings July 31, 2022 Openings Closings January 31, 2023 Anthropologie Group NA 217 1 1 217 4 6 215 Anthropologie Group EU 21 1 – 22 – – 22 Total Anthropolog
Slide 19: 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‘22 Q1 Store Count 238 153 251 11 653 Selling SF 1,816 338 2,224 n/a 4,378 Q2 Store Count 239 162 255 10 666 Selling SF 1,820 352 2,238 n/a 4,410 Q3 Store Count 242 17