Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q4 FY2022 Earnings Presentation
25 slides from Urban Outfitters's earnings presentation, March 2022
Slide 1: FY'22 Q4 Results
Urban Outfitters, Inc. F Y ’ 22 Q4 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2022 fourth quarter commentary ahead of our earnings call scheduled for March 1st 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. Thi
Slide 3: Important Information Regarding Non-GAAP Financial Measures
Important Information Regarding Non-GAAP Financial Measures In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP ”), from time to time our management evaluates and analyzes results and any impact on th
Slide 4: Table of Contents
Table of Contents Key Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Sales by Segment. . . . . . . . . . . . . . . .
Slide 5: Key Financial Highlights
Key Financial Highlights Three Months Ended URBN sales for the fourth quarter increased by 14% to a record $1.33 billion. The increase in sales was due to a 15% increase in Retail segment sales, partially offset by January 31, 2022 January 31, 2020 a 22% decline in Wholesale segment sales. Retail se
Slide 6: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the fourth quarter ($ in millions) Variance (unaudited) increased by 14% to a record $1.33 billion. URBN January 31, 2022 January 31, 2020 $ % Retail segment sales increased 15% to $1.26 billion, Total Sales $ 1,332.2 $ 1,169.6 $ 16
Slide 7: Revenue Metrics
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased ($ in millions) Variance (unaudited) 14% to $559 million for the quarter. January 31, 2022 January 31, 2020 $ % Total Sales $ 558.7 $ 491.1 $ 67.6 14% Retail segment sales increased 14%, with comparable sales also inc
Slide 8: Revenue Metrics
Revenue Metrics Three Months Ended Total Free People Group sales increased by 28% to ($ in millions) Variance (unaudited) $276 million for the quarter. This increase was due January 31, 2022 January 31, 2020 $ % to an increase in Retail segment sales of 52%, which Total Sales $ 276.2 $ 215.8 $ 60.4
Slide 9: Revenue Metrics
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales increased by 5% ($ in millions) Variance (unaudited) to $474 million for the quarter. January 31, 2022 January 31, 2020 $ % Total Sales $ 474.4 $ 449.9 $ 24.5 5% Retail segment sales increased 5%, with comparable sales increasing
Slide 10: Adjusted Gross Profit by Segment
Adjusted Gross Profit by Segment Three Months Ended Adjusted gross profit dollars increased by 5% to $367 million for the quarter, ($ in millions) Variance (unaudited) while adjusted gross profit rate decreased 222 bps to 27.6%. The decrease in adjusted gross profit rate was primarily due to lower i
Slide 11: 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 $314 million while SG&A as a % January 31, 2022 January 31, 2020 $ % of sales leveraged by 48 bps to 23.6%. The leverage SG&A* $’s $ 314.0 $ 281.3 $ 32.7
Slide 12: Adjusted Operating Income by Segment
Adjusted Operating Income by Segment Three Months Ended Adjusted operating income dollars decreased ($ in millions) Variance (unaudited) by 21% to $53 million while adjusted operating January 31, 2022 January 31, 2020 $ % income rate decreased by 174 bps to 4.0%. The decrease in dollars and rate was
Slide 13: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for the (share count in millions) fourth quarter was 21% compared (unaudited) January 31, 2022 % of Net Sales to an adjusted effective tax rate of 28% in the fourth quarter of fiscal Net Sales $ 1,332.2 100.0% 2020. T
Slide 14: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended January 31, 2020 (share count in millions) (unaudited) As Reported % of Net Sales Total Adjustments Adjusted % of Net Sales Net Sales $ 1,169.6 100.0 % $ – $ 1,169.6 100.0 % Cost of Sales (excluding Store Impairment) 821.2 70.2 – 821.2 70.2
Slide 15: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of January 31, 2022, cash (unaudited) January 31, 2022 January 31, 2020 and marketable securities totaled $670 million with $0 Assets drawn down on our $350 Cash and Cash Equivalents $ 207 $ 222 million asset backed line of Marketable Securities 239 211 credi
Slide 16: Cash Flows Summary
Cash Flows Summary ($ in millions) Twelve Months Ended (unaudited) January 31, 2022 January 31, 2020 Cash Flows from Operating Activities Net Income $ 311 $ 168 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation & Amortization 106 112 Inventory (182) (39)
Slide 17: Inventory Data
Inventory Data ($ in millions) (unaudited) Cost Variance January 31, 2022 January 31, 2020 $ % URBN Total Inventory $ 569.7 $ 409.5 $ 160.2 39% Retail Segment Total Inventory $ 507.5 $ 347.8 $ 159.7 46% Retail Segment Comparable Inventory by Brand 352.8 281.0 71.8 26% Anthropologie Group 170.2 137.1
Slide 18: 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 fourth quarter, capital expenditures were $103 million while depreciation & amortization
Slide 19: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) 140 130 120 110 100 90 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 2.0 Total Cost $ 46 $ 157 $ 121 $ 217 $7 $ 56 During the fourth quarter, the Company repurchased 1.5 milli
Slide 20: Global Retail Stores Summary
Global Retail Stores Summary YTD FY’22 Projected FY’23 Projected Open as of Open as of Projected Projected Open as of January 31, 2021 Openings Closings January 31, 2022 Openings Closings January 31, 2023 Anthropologie Group NA 215 7 5 217 5 8 214 Anthropologie Group EU 22 2 3 21 3 – 24 Total Anthro
Slide 21: 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 22: Appendix
Appendix FY ’ 22 Q 4 RESULTS | 22
Slide 23: Sales by Brand and Segment
Sales by Brand and Segment Three Months Ended ($ in millions) Variance (unaudited) January 31, 2022 January 31, 2021 $ % Sales by Brand $ 1,332.2 $ 1,088.4 $ 243.8 22% Anthropologie Group 558.7 431.4 127.3 30% Free People Group 276.2 219.3 56.9 26% Urban Outfitters 474.4 428.0 46.4 11% Menus & Venue
Slide 24: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended (share count in millions) (unaudited) January 31, 2022 % of Net Sales January 31, 2021 % of Net Sales Net Sales $ 1,332.2 100.0% $ 1,088.4 100.0% Cost of Sales (excluding Store Impairment) 964.9 72.4 798.3 73.3 Store Impairment – – 1.0 0.1
Slide 25: Balance Sheet Summary
Balance Sheet Summary ($ in millions) (unaudited) January 31, 2022 January 31, 2021 Assets Cash and Cash Equivalents $ 207 $ 396 Marketable Securities 239 175 Accounts Receivable, Net 64 90 Inventory 570 390 Other Current Assets 206 172 Total Current Assets 1,286 1,223 Property and Equipment, Net 1,