Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q1 FY2020 Earnings Presentation
18 slides from Urban Outfitters's earnings presentation, May 2019
Slide 1: FY'20 Q1 Results
Urban Outfitters, Inc. F Y ’ 20 Q 1 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters Inc. “URBN” is providing first quarter commentary ahead of our earnings call scheduled for May 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. Our first quarter
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 grew by 1% to $864 million. Sales growth was driven by a Retail segment comp of 1%, a Wholesale segment growth of 2% and April 30, 2019 April 30, 2018 non-comp sales of $2 million. Foreign currency translation negatively im
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the quarter in- ($ in millions) Variance (unaudited) creased 1% to $864 million. The increase in sales was April 30, 2019 April 30, 2018 $ % driven by a 1% URBN Retail segment comp increase, Total Sales $ 864.4 $ 855.7 $ 8.7 1% a 2%
Slide 6: Revenue Metrics (Anthropologie Group)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group Brand sales increased (unaudited) April 30, 2019 April 30, 2018 $ % by 2% to $355 million driven by a Retail segment comp of 1% and a Retail segment non-comp sales Total Sales $ 355.0 $ 347.1 $ 7.9 2% increase of $
Slide 7: Revenue Metrics (Free People)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales increased by 3% to (unaudited) April 30, 2019 April 30, 2018 $ % $186 million driven by a Retail segment comp of 2%, a Wholesale segment growth of 1% and non- Total Sales $ 186.2 $ 181.3 $ 4.9 3% comp sales of
Slide 8: Revenue Metrics (Urban Outfitters)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Urban Outfitters brand sales decreased by 2% (unaudited) as a result of negative non-comp sales of $7 million, April 30, 2019 April 30, 2018 $ % while the Retail segment comp was flat for the quarter Total Sales $ 316.8 $ 322.7 $ (5.9
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Total company gross profit decreased 4% to $269 ($ in millions) Variance (unaudited) million, while the gross profit rate declined by 167 basis April 30, 2019 April 30, 2018 $ % points to 31.1%. The decline in the total company gross profit rate was driven
Slide 10: SG&A–Total Company
SG&A–Total Company Three Months Ended ($ in millions) (unaudited) Variance Total company SG&A increased 1% to $229 April 30, 2019 April 30, 2018 $ % million. Total company SG&A as a percentage of sales was flat at 26.5%. The growth in SG&A SG&A* $’s $ 229.1 $ 226.8 $ 2.3 1% expenses was partially du
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income decreased by 26% to $40 million, ($ in millions) Variance (unaudited) while operating profit margin deleveraged by 167 April 30, 2019 April 30, 2018 $ % basis points to 4.6%. The decline in operating profit margin was largely driven by
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate (unaudited) for the first quarter was April 30, 2019 April 30, 2018 23.7%. The rate was Net Sales $ 864.4 $ 855.7 favorably impacted by approximately 140 basis Cost of Sales 595.3 575.0 points due to equity Gross Prof
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Inventory increased 1% (unaudited) April 30, 2019 April 30, 2018 to $408 million, largely Assets driven by a 1% increase Cash and Cash Equivalents $ 291 $ 314 in Retail Segment comp Marketable Securities 229 166 inventory. Accounts Receivable, Net 88 89 Inventor
Slide 14: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance April 30, 2019 April 30, 2018 $ % URBN Inventory $ 408.4 $ 404.7 $ 3.7 1% Retail Segment Comparable Inventory at Cost $ 314.3 $ 311.9 $ 2.4 1% Anthropologie Group 154.9 154.3 0.6 flat Free People 39.1 34.3 4.8 14% Urban Outfitters 120.3 123.3 (3.0)
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 first quarter, capital expenditures were $38 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 Q3 Q 4 Q 1 Q2 Q3 Q 4 Q1 Q 2 Q 3 Q 4 Q 1 Q2 Q3 Q 4 Q 1 Q2 Q3 Q 4 Q1 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 2.4
Slide 17: Global Retail Stores Summary
Global Retail Stores Summary Q1 FY’20 Projected Q2–Q4 FY’20 Projected Open as of Open as of Projected Projected Open as of January 31, 2019 Openings Closings April 30, 2019 Openings Closings January 31, 2020 Anthropologie Group NA 216 – 1 215 – 6 209 Anthropologie Group EU 11 2 – 13 4 – 17 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 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 13