Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q3 FY2022 Earnings Presentation
23 slides from Urban Outfitters's earnings presentation, November 2021
Slide 1: FY'22 Q3 Results
Urban Outfitters, Inc. F Y ’ 22 Q3 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2022 third quarter commentary ahead of our earnings call scheduled for November 22nd at 5:15pm. We remind you that any forward-looking statements made in this commentary are subject to our safeharbor statement found in our SEC filings. T
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 15% to a record $1.13 billion. The increase in sales was due to a 16% increase in Retail segment sales, partially offset by a 15% October 31, 2021 October 31, 2019 decline in Wholesale segment sales. Retail seg
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the third quarter ($ in millions) Variance (unaudited) increased by 15% to a record $1.13 billion. URBN October 31, 2021 October 31, 2019 $ % Retail segment sales increased 16% to $1.04 billion, Total Sales $ 1,131.4 $ 987.5 $ 143.9
Slide 6: Revenue Metrics: Anthropologie Group
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased ($ in millions) Variance (unaudited) 8% to $431 million for the quarter. October 31, 2021 October 31, 2019 $ % Total Sales $ 431.4 $ 398.7 $ 32.7 8% Retail segment sales increased 9%, with comparable sales also increa
Slide 7: Revenue Metrics: Free People Group
Revenue Metrics Three Months Ended Total Free People Group sales increased by 29% to ($ in millions) Variance (unaudited) $265 million for the quarter. This increase was due October 31, 2021 October 31, 2019 $ % to an increase in Retail segment sales of 59%, which Total Sales $ 265.0 $ 205.5 $ 59.5
Slide 8: Revenue Metrics: Urban Outfitters
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales increased by 11% to ($ in millions) Variance (unaudited) $416 million for the quarter. October 31, 2021 October 31, 2019 $ % Total Sales $ 415.9 $ 374.5 $ 41.4 11% Retail segment sales increased 10%, with comparable sales increasi
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars increased by 22% to $391 million for the quarter, while ($ in millions) Variance (unaudited) gross profit rate increased 202 bps to 34.5%. The increase in gross profit rate was primarily due to record low third quarter merchandise markd
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 12% to $275 million while SG&A as a % October 31, 2021 October 31, 2019 $ % of sales leveraged by 60 bps to 24.3%. The leverage SG&A* $’s $ 274.8 $ 245.8 $ 29.0
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars increased by 54% to $116 ($ in millions) Variance (unaudited) million while operating income rate increased by 262 October 31, 2021 October 31, 2019 $ % bps to 10.2%. The increase in dollars was due to the Operating Income $’s $
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for (share count in millions) (unaudited) the third quarter was 23% October 31, 2021 % of Net Sales October 31, 2019 % of Net Sales compared to 27% in the third quarter of fiscal 2020. The Net Sales $ 1,131.4 100.0% $
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of October 31, 2021, cash (unaudited) October 31, 2021 October 31, 2019 and marketable securities totaled $695 million with $0 Assets drawn down on our $350 Cash and Cash Equivalents $ 236 $ 167 million asset backed line of Marketable Securities 188 171 credi
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Nine Months Ended (unaudited) October 31, 2021 October 31, 2019 Cash Flows from Operating Activities Net Income $ 270 $ 149 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation & Amortization 78 84 Inventory (238) (161) Pay
Slide 15: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance October 31, 2021 October 31, 2019 $ % URBN Inventory $ 627.1 $ 531.6 $ 95.5 18% Retail Segment by Brand $ 582.7 $ 468.8 $ 113.9 24% Anthropologie Group 281.8 217.4 64.4 30% Free People Group 92.9 61.3 31.6 52% Urban Outfitters 208.0 190.1 17.9 9% W
Slide 16: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 300 $ 250 Home Office 5.5% $ 200 Fulfillment 4.6% $ 150 Technology 2.9% $ 100 Stores $ 50 FY’ 19 FY’ 20 FY’ 21 Projected FY’ 22 During the third quarter, capital expenditures were $53 million while depreciation & amortization wa
Slide 17: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) 140 130 120 110 100 90 Q 1 Q2 Q 3 FY ’17 FY ’18 FY ’19 FY ’20 FY ’21 FY ’22 Shares Repurchased Number of Shares 1.3 8.1 3.5 8.1 0.5 0.5 Total Cost $ 46 $ 157 $ 121 $ 217 $7 $ 15 During the third quarter, the Company repurchased
Slide 18: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q3 FY’22 Q4 FY’22 Projected Open as of Open as of Projected Projected Open as of January 31, 2021 Openings Closings October 31, 2021 Openings Closings January 31, 2022 Anthropologie Group NA 215 6 3 218 1 4 215 Anthropologie Group EU 22 2 – 24 – 2 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‘21 Q1 Store Count 233 144 249 11 637 Selling SF 1,793 325 2,220 n/a 4,338 Q2 Store Count 233 143 248 11 635 Selling SF 1,793 321 2,212 n/a 4,326 Q3 Store Count 234 14
Slide 20: Appendix
Appendix FY ’ 22 Q 3 RESULTS | 20
Slide 21: Sales by Brand and Segment
Sales by Brand and Segment Three Months Ended ($ in millions) Variance (unaudited) October 31, 2021 October 31, 2020 $ % Sales by Brand $ 1,131.4 $ 969.6 $ 161.8 17% Anthropologie Group 431.4 358.5 72.9 20% Free People Group 265.0 206.7 58.3 28% Urban Outfitters 415.8 394.0 21.8 6% Menus & Venues 6.
Slide 22: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended (share count in millions) (unaudited) October 31, 2021 % of Net Sales October 31, 2020 % of Net Sales Net Sales $ 1,131.4 100.0% $ 969.6 100.0% Cost of Sales 740.7 65.5 646.7 66.7 Gross Profit 390.7 34.5 322.9 33.3 Selling, General and Admi
Slide 23: Balance Sheet Summary
Balance Sheet Summary ($ in millions) (unaudited) October 31, 2021 October 31, 2020 Assets Cash and Cash Equivalents $ 236 $ 625 Marketable Securities 188 – Accounts Receivable, Net 114 87 Inventory 627 489 Other Current Assets 204 171 Total Current Assets 1,369 1,372 Property and Equipment, Net 1,0