Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q2 FY2020 Earnings Presentation
18 slides from Urban Outfitters's earnings presentation, August 2019
Slide 1: FY'20 Q2 Results
Urban Outfitters, Inc. F Y ’ 20 Q2 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters Inc. “URBN” is providing second quarter commentary ahead of our earnings call scheduled for August 20th 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. Our second qua
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 declined by 3% to $962 million. The sales decline was due to Retail segment sales comp decline of 3% and a Wholesale July 31, 2019 July 31, 2018 segment sales decline of 8% which were partially offset by non-comp sales gro
Slide 5: Sales by Segment
Sales by Segment Three Months Ended URBN Retail segment comps dropped by 3% ($ in millions) Variance (unaudited) driven by negative store comps which were partially July 31, 2019 July 31, 2018 $ % offset by an increase in digital channel sales. Retail Total Sales $ 962.3 $ 992.5 $ (30.2) -3% Segment
Slide 6: Revenue Metrics (Anthropologie Group)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group Brand sales declined (unaudited) by 2% to $394 million. The decline in brand sales July 31, 2019 July 31, 2018 $ % were driven by a 3% drop in Retail segment comp, Total Sales $ 394.3 $ 401.3 $ (7.0) -2% partially
Slide 7: Revenue Metrics (Free People)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales were flat at $206 (unaudited) million for the quarter. Retail segment sales July 31, 2019 July 31, 2018 $ % comp increased 6% while Wholesale segment Total Sales $ 205.9 $ 206.4 $ (0.5) flat sales declined 10%,
Slide 8: Revenue Metrics (Urban Outfitters)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Urban Outfitters brand sales decreased by (unaudited) 6% as a result of a Retail Segment sale comp decline July 31, 2019 July 31, 2018 $ % of 5%, negative non-comp sales of $6 million, while Total Sales $ 355.0 $ 379.3 $ (24.3) -6% Wh
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Total company gross profit decreased 11% to $316 million, ($ in millions) Variance (unaudited) while the gross profit rate declined by 304 basis points July 31, 2019 July 31, 2018 $ % to 32.8%. The decline in the total company gross profit Gross Profit* $ $
Slide 10: SG&A–Total Company
SG&A–Total Company ($ in millions) Three Months Ended Variance Total company ‘SG&A’ decreased close to 1% to (unaudited) $238 million. Total company ‘SG&A’ as a percentage July 31, 2019 July 31, 2018 $ % of sales increased by 62 bps to 24.7%. The delever- SG&A* $’s $ 237.8 $ 238.9 $ (1.1) -1% age in
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income decreased by 33% to $78 million, ($ in millions) Variance (unaudited) while operating profit margin deleveraged by 366 July 31, 2019 July 31, 2018 $ % basis points to 8.1%. The decline in operating profit Operating Profit $ $ 78.1 $ 116
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate (unaudited) for the second quarter July 31, 2019 July 31, 2018 was 26.0%. The increase Net Sales $ 962.3 $ 992.5 from the prior year is primarily due to the ratio Cost of Sales 646.4 636.7 of foreign taxable profits t
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Inventory increased 17% (unaudited) July 31, 2019 July 31, 2018 to $440 million, driven Assets by a 5% increase in Retail Cash and Cash Equivalents $ 162 $ 406 Segment comp inventory Marketable Securities 171 198 and an increase in inventory Accounts Receivable,
Slide 14: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance July 31, 2019 July 31, 2018 $ % URBN Inventory $ 440.1 $ 375.7 $64.4 17% Retail Segment Comparable Inventory at Cost $ 297.6 $ 283.5 $ 14.1 5% Anthropologie Group 143.7 134.4 9.3 7% Free People 37.7 31.8 5.9 18% Urban Outfitters 116.2 117.3 (1.1) –
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 second quarter, capital expenditures were $79 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 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 During the second qua
Slide 17: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q2 FY’20 Projected Q3–Q4 FY’20 Projected Open as of Open as of Projected Projected Open as of January 31, 2019 Openings Closings July 31, 2019 Openings Closings January 31, 2020 Anthropologie Group NA 216 – 2 214 – 5 209 Anthropologie Group EU 11 3 – 14 5 – 19 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 228 134