Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q2 FY2024 Earnings Presentation
19 slides from Urban Outfitters's earnings presentation, August 2023
Slide 1: FY'24 Q2 Results
Urban Outfitters, Inc. F Y ’ 24 Q2 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2024 second quarter commentary ahead of our earnings call scheduled for August 22nd 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. O
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 8% to a record $1.27 billion. The increase in sales was due to a 6% increase in Retail segment sales and a July 31, 2023 July 31, 2022 $27 million increase in Nuuly segment sales, partially offset by a 5% decr
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the second quarter ($ in millions) Variance (unaudited) increased by 8% to a record $1.27 billion. URBN Retail July 31, 2023 July 31, 2022 $ % segment sales increased 6% to $1.16 billion, with Retail segment comparable sales increas
Slide 6: Revenue Metrics
Revenue Metrics Three Months Ended Total Anthropologie Group brand sales increased 11% to ($ in millions) Variance (unaudited) $530 million for the quarter. July 31, 2023 July 31, 2022 $ % Retail segment sales increased 11%, with comparable Total Sales $ 530.1 $ 479.2 $ 50.9 11% sales also increasin
Slide 7: Revenue Metrics
Revenue Metrics Three Months Ended Total Free People Group sales increased by 22% to ($ in millions) Variance (unaudited) $331 million for the quarter. This increase was due to an July 31, 2023 July 31, 2022 $ % increase in Retail segment sales of 29%, partially offset by a 7% decrease in Wholesale
Slide 8: Revenue Metrics
Revenue Metrics Three Months Ended Total Urban Outfitters brand sales decreased by 13% ($ in millions) Variance (unaudited) to $346 million for the quarter. July 31, 2023 July 31, 2022 $ % Retail segment sales decreased 13%, with comparable Total Sales $ 346.4 $ 396.4 $ (50.0) (13%) sales decreasing
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars increased by 22% to $456 million for the ($ in millions) Variance (unaudited) quarter, while gross profit rate increased 416 bps to 35.8%. The July 31, 2023 July 31, 2022 $ % increase in gross profit rate was primarily due to higher ini
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 12% to $323 million while SG&A as a July 31, 2023 July 31, 2022 $ % percentage of sales deleveraged by 103 bps to 25.4%. The deleverage in SG&A expenses as a pe
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars increased by 54% to $132 ($ in millions) Variance (unaudited) million while operating income rate increased by 313 July 31, 2023 July 31, 2022 $ % bps to 10.4%. The increase in dollars was primarily driven by the increase in gro
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for the (share count in millions) second quarter was 23% compared (unaudited) July 31, 2023 % of Net Sales July 31, 2022 % of Net Sales to an effective tax rate of 29% in the second quarter of fiscal 2023. Net Sales $
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of July 31, 2023, cash and (unaudited) July 31, 2023 July 31, 2022 marketable securities totaled $598 million with $0 drawn down Assets on our $350 million asset backed Cash and Cash Equivalents $ 225 $ 92 line of credit facility. Marketable Securities 251 16
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Six Months Ended (unaudited) July 31, 2023 July 31, 2022 Cash Flows from Operating Activities Net Income $ 157 $ 91 Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: Depreciation & Amortization 47 52 Inventory 3 (134) Payab
Slide 15: Inventory Data
Inventory Data ($ in millions) Cost Variance (unaudited) July 31, 2023 July 31, 2022 $ % URBN Total Inventory $ 586.5 $ 697.5 $ (111.0) (16%) Retail Segment Total Inventory $ 535.9 $ 623.6 $ (87.7) (14%) Retail Segment Comparable Inventory by Brand 434.7 444.3 (9.6) (2%) Anthropologie Group 222.8 21
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 second quarter, capital expenditures were $46 million while depreciation & amortization w
Slide 17: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) 140 130 120 110 100 90 FY ’19 FY ’20 FY ’21 FY ’22 FY ’23 FY ’24 Shares Repurchased Number of Shares 3.5 8.1 0.5 2.0 4.7 – Total Cost $ 121 $ 217 $7 $ 56 $ 112 – The Company did not repurchase any shares during the quarter. The
Slide 18: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q2 FY’24 Q3–Q4 FY’24 Projected Open as of Open as of Projected Projected Open as of January 31, 2023 Openings Closings July 31, 2023 Openings Closings January 31, 2024 Anthropologie Group NA 217 2 3 216 5 2 219 Anthropologie Group EU 21 – – 21 – – 21 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‘23 Q1 Store Count 237 174 262 11 684 Selling SF 1,810 368 2,270 n/a 4,448 Q2 Store Count 239 183 261 11 694 Selling SF 1,821 384 2,263 n/a 4,468 Q3 Store Count 241 18