Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q3 FY2023 Earnings Presentation
19 slides from Urban Outfitters's earnings presentation, November 2022
Slide 1: FY'23 Q3 Results
Urban Outfitters, Inc. F Y ’ 23 Q3 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2023 third quarter commentary ahead of our earnings call scheduled for November 21st 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 4% to a record $1.18 billion. The increase in sales was due to a $23 million increase in Nuuly segment sales October 31, 2022 October 31, 2021 and a 2% increase in Retail segment sales, partially offset by a 3%
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the third quarter ($ in millions) Variance (unaudited) increased by 4% to a record $1.18 billion. URBN October 31, 2022 October 31, 2021 $ % Retail segment sales increased 2% to $1.07 billion, with comparable sales increasing 4%, pa
Slide 6: Revenue Metrics
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased 12% ($ in millions) Variance (unaudited) to $484 million for the quarter. October 31, 2022 October 31, 2021 $ % Retail segment sales increased 12%, with comparable Total Sales $ 484.2 $ 431.4 $ 52.8 12% sales increasi
Slide 7: Revenue Metrics
Revenue Metrics Three Months Ended Total Free People Group sales increased by 6% to $281 ($ in millions) Variance (unaudited) million for the quarter. This increase was due to an October 31, 2022 October 31, 2021 $ % increase in Retail segment sales of 9%, partially offset by a 4% decrease in Wholes
Slide 8: Revenue Metrics
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales decreased by 12% ($ in millions) Variance (unaudited) to $368 million for the quarter. October 31, 2022 October 31, 2021 $ % Retail segment sales decreased 12%, with comparable Total Sales $ 367.6 $ 415.9 $ (48.3) (12%) sales decr
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars decreased by 9% to $357 million for the ($ in millions) Variance (unaudited) quarter, while gross profit rate decreased 416 bps to 30.4%. October 31, 2022 October 31, 2021 $ % The decrease in gross profit dollars and rate was primarily
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 9% to $300 million while SG& A as a % of October 31, 2022 October 31, 2021 $ % sales deleveraged by 121 bps to 25.5%. The deleverage in SG& A as a rate to sale
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars decreased by 51% to $57 ($ in millions) Variance (unaudited) million while operating income rate decreased by October 31, 2022 October 31, 2021 $ % 537 bps to 4.9%. The decrease in dollars and rate was primarily due to the lower
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for the third (share count in millions) quarter was 29% compared to an (unaudited) October 31, 2022 % of Net Sales October 31, 2021 % of Net Sales effective tax rate of 23% in the third quarter of fiscal 2022. The Net
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of October 31, 2022, cash (unaudited) October 31, 2022 October 31, 2021 and marketable securities totaled $389 million with $0 drawn down Assets on our $350 million asset backed Cash and Cash Equivalents $ 147 $ 236 line of credit facility. Marketable Securit
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Nine Months Ended (unaudited) October 31, 2022 October 31, 2021 Cash Flows from Operating Activities Net Income $ 128 $ 270 Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities: Depreciation & Amortization 78 78 Inventory (185)
Slide 15: Inventory Data
Inventory Data ($ in millions) Cost Variance (unaudited) October 31, 2022 October 31, 2021 $ % URBN Total Inventory $ 743.6 $ 627.1 $ 116.5 19% Retail Segment Total Inventory $ 682.0 $ 582.7 $ 99.3 17% Retail Segment Comparable Inventory by Brand 547.0 438.9 108.1 25% Anthropologie Group 272.7 215.2
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 third quarter, capital expenditures were $38 million while depreciation & amortization wa
Slide 17: Shares Outstanding
Shares Outstanding ($ 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 The Company did not repurchase any shares during the quarte
Slide 18: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q3 FY’23 Q4 FY ’23 Projected Open as of Open as of Projected Projected Open as of January 31, 2022 Openings Closings October 31, 2022 Openings Closings January 31, 2023 Anthropologie Group NA 217 3 1 219 2 4 217 Anthropologie Group EU 21 1 – 22 – – 22 Total Anthropolo
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