Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q1 FY2021 Earnings Presentation
18 slides from Urban Outfitters's earnings presentation, May 2020
Slide 1: FY'21 Q1 Results
Urban Outfitters, Inc. F Y ’ 21 Q1 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2021 first quarter commentary ahead of our earnings call scheduled for May 19th 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. Due 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 first quarter declined by 32% to $588 million. The decrease in sales was due in part to a Retail segment sales decline of 28% and a 74% decline in Wholesale April 30, 2020 April 30, 2019 segment sales. Gross profit dollars decreased by 9
Slide 5: Sales by Segment
Sales by Segment ($ in millions) Three Months Ended Variance Total Company or URBN sales for the first quarter (unaudited) decreased by 32% to $588 million. URBN Retail April 30, 2020 April 30, 2019 $ % segment sales declined 28% to $561 million. The Total Sales $ 588.5 $ 864.4 $ (275.9) -32% decrea
Slide 6: Revenue Metrics
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group brand sales decreased (unaudited) by 34% to $234 million. April 30, 2020 April 30, 2019 $ % Total Sales $ 234.1 $ 355.0 $ (120.9) -34% The decline in Anthropologie sales during the quarter primarily related to the
Slide 7: Revenue Metrics
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales decreased by 42% (unaudited) to $108 million for the quarter. This decrease was April 30, 2020 April 30, 2019 $ % due to a 19% decline in Retail segment sales and Total Sales $ 107.7 $ 186.2 $ (78.5) -42% a 74%
Slide 8: Revenue Metrics
Revenue Metrics ($ in millions) Three Months Ended Variance Total Urban Outfitters brand sales decreased by 25% (unaudited) to $237 million for the quarter. April 30, 2020 April 30, 2019 $ % Total Sales $ 237.3 $ 316.8 $ (79.3) -25% The decline in Urban Outfitters sales during the quarter primarily
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Total Company gross profit dollars decreased by 96% to $12 ($ in millions) Variance (unaudited) million for the quarter, while gross profit rate declined to 2.0%. April 30, 2020 April 30, 2019 $ % The decline in the total Company gross profit dollars and ra
Slide 10: SG&A–Total Company
SG&A–Total Company ($ in millions) Three Months Ended Variance SG& A expenses decreased by 8% to $211 million (unaudited) while SG& A as a % of sales increased to 35.8%. April 30, 2020 April 30, 2019 $ % The deleverage in SG& A as a rate to sales was SG&A* $’s $ 210.5 $ 229.1 $ (18.6) -8% primarily
Slide 11: Operating (Loss) Income by Segment
Operating (Loss) Income by Segment Three Months Ended As a result of lower gross profit and higher SG&A ($ in millions) Variance (unaudited) expense we recorded a $199 million operating loss April 30, 2020 April 30, 2019 $ % for the quarter. This loss included several significant Operating (Loss) In
Slide 12: Statement of Operations Summary
Statement of Operations Summary ($ in millions) Three Months Ended The effective tax rate for the (share count in millions) (unaudited) first quarter was a benefit April 30, 2020 % of Net Sales April 30, 2019 % of Net Sales of 30.3% compared to an Net Sales $ 588.5 100 % $ 864.4 100% expense of 23.7
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of April 30, 2020, (unaudited) April 30, 2020 April 30, 2019 Inventory decreased 18% Assets to $336 million, driven by Cash and Cash Equivalents $ 589 $ 291 an 18% decrease in Retail Marketable Securities 65 229 segment inventory. Accounts Receivable, Net 56
Slide 14: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance April 30, 2020 April 30, 2019 $ % URBN Inventory $ 335.6 $ 408.4 $ (72.8) -18% Retail Segment by Brand $ 299.8 $ 365.6 $ (65.8) -18% Anthropologie Group 144.4 169.5 (25.1) -15% Free People 43.5 47.8 (4.3) -9% Urban Outfitters 111.9 148.3 (36.4) -25
Slide 15: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 250 Home Office 5.5% $ 200 Fulfillment $ 150 Technology 2.9% $ 100 2.3% Stores $ 50 FY’ 18 FY’ 19 FY’ 20 Projected FY’ 21 During the first quarter, capital expenditures were $44 million while depreciation & amortization was $28
Slide 16: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) Ending Shares Outstanding 140 130 120 110 100 90 Q1 FY ’16 FY ’17 FY ’18 FY ’19 FY ’20 FY ’21 Shares Repurchased Number of Shares 15 1.3 8.1 3.5 8.1 0.5 Total Cost $ 465 $ 46 $ 157 $ 121 $ 217 $7 The Company repurchased 482 tho
Slide 17: Global Retail Stores Summary
Global Retail Stores Summary Q1 FY’21 Projected Q2–Q4 FY’21 Projected Open as of Open as of Projected Projected Open as of January 31, 2020 Openings Closings April 30, 2020 Openings Closings January 31, 2021 Anthropologie Group NA 211 1 – 212 5 4 213 Anthropologie Group EU 20 1 – 21 _ – 21 Total Ant
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 M&V URBN * FY‘20 Q1 Store Count 228 136 245 12 621 Selling SF 1,782 304 2,196 n/a 4,282 Q2 Store Count 228 137 246 11 622 Selling SF 1,782 306 2,203 n/a 4,291 Q3 Store Count 231 143