Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q2 FY2022 Earnings Presentation
23 slides from Urban Outfitters's earnings presentation, August 2021
Slide 1: FY'22 Q2 Results
Urban Outfitters, Inc. F Y ’ 22 Q2 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2022 second quarter commentary ahead of our earnings call scheduled for August 24th at 5:30pm. We remind you that any forward-looking statements made in this commentary are subject to our safeharbor statement found in our SEC filings. Th
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 increased by 20% to a record $1.16 billion. The increase in sales was due to a 24% increase in Retail segment sales, partially offset by July 31, 2021 July 31, 2019 a 30% decline in Wholesale segment sales. Retail segment
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the second quarter ($ in millions) Variance (unaudited) increased by 20% to a record $1.16 billion. URBN July 31, 2021 July 31, 2019 $ % Retail segment sales increased 24% to $1.09 billion. Total Sales $ 1,157.7 $ 962.3 $ 195.4 20%
Slide 6: Revenue Metrics
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased ($ in millions) Variance (unaudited) 14% to $451 million for the quarter. July 31, 2021 July 31, 2019 $ % Total Sales $ 450.6 $ 394.3 $ 56.3 14% Retail segment sales increased 15%, with comparable sales increasing 14%
Slide 7: Revenue Metrics
Revenue Metrics Three Months Ended Total Free People Group sales increased by 21% to ($ in millions) Variance (unaudited) $250 million for the quarter. This increase was due July 31, 2021 July 31, 2019 $ % to an increase in Retail segment sales of 57%, which Total Sales $ 249.7 $ 205.9 $ 43.8 21% wa
Slide 8: Revenue Metrics
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales increased by 24% ($ in millions) Variance (unaudited) to $442 million for the quarter. July 31, 2021 July 31, 2019 $ % Total Sales $ 441.6 $ 355.0 $ 86.6 24% Retail segment sales increased 23%, with comparable sales increasing 20%
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars increased by 38% to $435 million for the quarter, ($ in millions) Variance (unaudited) while gross profit rate increased 478 bps to 37.6%. The increase in gross profit rate was primarily due to record low second quarter merchandise July
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 13% to $269 million while SG&A as a % July 31, 2021 July 31, 2019 $ % of sales leveraged by 144 bps to 23.3%. The leverage SG&A* $’s $ 269.4 $ 237.8 $ 31.6 13%
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars increased by 112% to $166 ($ in millions) Variance (unaudited) million while operating income rate increased by 622 July 31, 2021 July 31, 2019 $ % bps to 14.3%. The increase in dollars was due to the Operating Income $’s $ 165.
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for (share count in millions) (unaudited) the second quarter was 22% July 31, 2021 % of Net Sales July 31, 2019 % of Net Sales compared to 26% in the second quarter of fiscal 2020. Net Sales $ 1,157.7 100.0% $ 962.3 1
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of July 31, 2021, Inventory (unaudited) July 31, 2021 July 31, 2019 increased 10% to $483 million driven by the increase in net Assets sales. Cash and Cash Equivalents $ 465 $ 162 Marketable Securities 157 171 As of July 31, 2021, cash and Accounts Receivable
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Six Months Ended (unaudited) July 31, 2021 July 31, 2019 Cash Flows from Operating Activities Net Income $ 181 $ 93 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation & Amortization 51 55 Inventory (93) (72) Payables, Acc
Slide 15: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance July 31, 2021 July 31, 2019 $ % URBN Inventory $ 483.1 $ 440.1 $ 43.0 10% Retail Segment by Brand $ 438.1 $ 376.1 $ 62.0 17% Anthropologie Group 207.4 172.2 35.2 21% Free People Group 78.0 50.1 27.9 56% Urban Outfitters 152.7 153.8 (1.1) -1% Wholes
Slide 16: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 300 $ 250 Home Office 5.5% $ 200 Fulfillment 4.6% $ 150 Technology 2.9% $ 100 Stores $ 50 FY’ 19 FY’ 20 FY’ 21 Projected FY’ 22 During the second quarter, capital expenditures were $63 million while depreciation & amortization w
Slide 17: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) 140 130 120 110 100 90 Q 1 Q2 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 0 Total Cost $ 46 $ 157 $ 121 $ 217 $7 $- The Company did not repurchase any shares during the quar
Slide 18: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q2 FY’22 Q3–Q4 FY’22 Projected Open as of Open as of Projected Projected Open as of January 31, 2021 Openings Closings July 31, 2021 Openings Closings January 31, 2022 Anthropologie Group NA 215 2 2 215 5 5 215 Anthropologie Group EU 22 2 – 24 – 2 22 Total Anthropolog
Slide 19: Global Store Count & Square Footage
Global Store Count & Square Footage (all data is as of the respective period ended) (Selling SF in thousands) AN FP UO M&V URBN ** FY‘21 Q1 Store Count 233 144 249 11 637 Selling SF 1,793 325 2,220 n/a 4,338 Q2 Store Count 233 143 248 11 635 Selling SF 1,793 321 2,212 n/a 4,326 Q3 Store Count 234 14
Slide 20: Appendix
Appendix FY ’ 22 Q 2 RESULTS | 20
Slide 21: Sales by Brand and Segment
Sales by Brand and Segment Three Months Ended ($ in millions) Variance (unaudited) July 31, 2021 July 31, 2020 $ % Sales by Brand $ 1,157.7 $ 803.3 $ 354.4 44% Anthropologie Group 450.6 295.1 155.5 53% Free People Group 249.7 178.0 71.7 40% Urban Outfitters 441.6 323.9 117.7 36% Menus & Venues 5.9 1
Slide 22: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended (share count in millions) (unaudited) July 31, 2021 % of Net Sales July 31, 2020 % of Net Sales Net Sales $ 1,157.7 100.0% $ 803.3 100.0% Cost of Sales 722.4 62.4 565.3 70.4 Gross Profit 435.3 37.6 238.0 29.6 Selling, General and Admin. Exp
Slide 23: Balance Sheet Summary
Balance Sheet Summary ($ in millions) (unaudited) July 31, 2021 July 31, 2020 Assets Cash and Cash Equivalents $ 465 $ 663 Marketable Securities 157 1 Accounts Receivable, Net 94 60 Inventory 483 352 Other Current Assets 196 195 Total Current Assets 1,395 1,271 Property and Equipment, Net 1,048 889