Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q4 FY2023 Earnings Presentation
19 slides from Urban Outfitters's earnings presentation, February 2023
Slide 1: FY'23 Q4 Results
Urban Outfitters, Inc. F Y ’ 23 Q4 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2023 fourth quarter commentary ahead of our earnings call scheduled for February 28th 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 fourth quarter increased by 4% to a record $1.38 billion. The increase in sales was due to 2% increase in Retail segment sales and a January 31, 2023 January 31, 2022 $25 million increase in Nuuly segment sales, partially offset by a 7%
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the fourth quarter ($ in millions) Variance (unaudited) increased by 4% to a record $1.38 billion. URBN Retail January 31, 2023 January 31, 2022 $ % segment sales increased 2% to $1.29 billion, with comparable sales increasing 3%, p
Slide 6: Revenue Metrics (Anthropologie Group)
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased 8% to ($ in millions) Variance (unaudited) $603 million for the quarter. January 31, 2023 January 31, 2022 $ % Retail segment sales increased 8%, with comparable sales Total Sales $ 602.9 $ 558.7 $ 44.2 8% increasing
Slide 7: Revenue Metrics (Free People Group)
Revenue Metrics Three Months Ended Total Free People Group sales increased by 11% to $306 ($ in millions) Variance (unaudited) million for the quarter. This increase was due to an January 31, 2023 January 31, 2022 $ % increase in Retail segment sales of 17%, partially offset by a 13% decrease in Who
Slide 8: Revenue Metrics (Urban Outfitters)
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales decreased by 10% ($ in millions) Variance (unaudited) to $426 million for the quarter. January 31, 2023 January 31, 2022 $ % Retail segment sales decreased 11%, with comparable Total Sales $ 425.6 $ 474.4 $ (48.8) (10%) sales decr
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars increased by 1% to $372 million for the quarter, ($ in millions) Variance (unaudited) while gross profit rate decreased 68 bps to 26.9%. The decrease in January 31, 2023 January 31, 2022 $ % gross profit rate was primarily due to store
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 $335 million while SG& A as a % of sales January 31, 2023 January 31, 2022 $ % deleveraged by 63 bps to 24.2%. The deleverage in SG& A as a rate to sales
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars decreased by 30% to $37 ($ in millions) Variance (unaudited) million while operating income rate decreased by January 31, 2023 January 31, 2022 $ % 131 bps to 2.7%. 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 (share count in millions) fourth quarter was 24% compared (unaudited) January 31, 2023 % of Net Sales January 31, 2022 % of Net Sales to an effective tax rate of 21% in the fourth quarter of fiscal 2022. Net S
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of January 31, 2023, cash (unaudited) January 31, 2023 January 31, 2022 and marketable securities totaled $485 million with $0 drawn down Assets on our $350 million asset backed Cash and Cash Equivalents $ 201 $ 207 line of credit facility. Marketable Securit
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Twelve Months Ended (unaudited) January 31, 2023 January 31, 2022 Cash Flows from Operating Activities Net Income $ 160 $ 311 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation & Amortization 102 106 Inventory (22) (182)
Slide 15: Inventory Data
Inventory Data ($ in millions) Cost Variance (unaudited) January 31, 2023 January 31, 2022 $ % URBN Total Inventory $ 587.5 $ 569.7 $ 17.8 3% Retail Segment Total Inventory $ 529.9 $ 507.5 $ 22.4 4% Retail Segment Comparable Inventory by Brand 406.3 361.6 44.7 12% Anthropologie Group 213.1 171.7 41.
Slide 16: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 300 5.8% $ 250 Home Office 4.2% $ 200 Fulfillment 4.6% $ 150 Technology $ 100 Stores $ 50 FY’ 21 FY’ 22 FY’ 23 Projected FY’ 24 During the fourth quarter, capital expenditures were $56 million while depreciation & amortization w
Slide 17: Shares Outstanding
Shares Outstanding ($ 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 The Company did not repurchase any shares during the quarte
Slide 18: Global Retail Stores Summary
Global Retail Stores Summary YTD FY’23 Projected FY ’24 Projected Open as of Open as of Projected Projected Open as of January 31, 2022 Openings Closings January 31, 2023 Openings Closings January 31, 2024 Anthropologie Group NA 217 5 5 217 8 6 219 Anthropologie Group EU 21 1 1 21 – – 21 Total Anthr
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