Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q3 FY2024 Earnings Presentation
19 slides from Urban Outfitters's earnings presentation, November 2023
Slide 1: FY'24 Q3 Results
Urban Outfitters, Inc. F Y ’ 24 Q3 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2024 third quarter commentary ahead of our earnings call scheduled for November 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.
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 third quarter increased by 9% to a record $1.28 billion. The increase in sales was due to a 7% increase in Retail segment sales and a October 31, 2023 October 31, 2022 $30 million increase in Nuuly segment sales, partially offset by a 4%
Slide 5: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the third quarter ($ in millions) Variance (unaudited) increased by 9% to a record $1.28 billion. URBN Retail October 31, 2023 October 31, 2022 $ % segment sales increased 7% to $1.15 billion, with Retail segment comparable sales in
Slide 6: Revenue Metrics
Revenue Metrics Three Months Ended Total Anthropologie sales increased 14% to $550 million ($ in millions) Variance (unaudited) for the quarter. October 31, 2023 October 31, 2022 $ % Retail segment sales increased 14%, with comparable Total Sales $ 549.8 $ 484.2 $ 65.6 14% sales increasing 13%. The
Slide 7: Revenue Metrics
Revenue Metrics Three Months Ended Total Free People sales increased by 18% to $332 million ($ in millions) Variance (unaudited) for the quarter. This increase was due to an increase in October 31, 2023 October 31, 2022 $ % Retail segment sales of 25%, partially offset by a 4% decrease in Wholesale
Slide 8: Revenue Metrics
Revenue Metrics Three Months Ended Total Urban Outfitters sales decreased by 12% to $324 ($ in millions) Variance (unaudited) million for the quarter. October 31, 2023 October 31, 2022 $ % Retail segment sales decreased 12%, with comparable Total Sales $ 324.4 $ 367.6 $ (43.2) (12%) sales decreasing
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Gross profit dollars increased by 27% to $454 million for the quarter, ($ in millions) Variance (unaudited) while gross profit rate increased 509 bps to 35.5%. The increase October 31, 2023 October 31, 2022 $ % in gross profit rate was primarily due to high
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 15% to $345 million while SG&A as a October 31, 2023 October 31, 2022 $ % percentage of sales deleveraged by 146 bps to 27.0%. The deleverage in SG&A expenses a
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars increased by 90% to $109 ($ in millions) Variance (unaudited) million while operating income rate increased by 363 October 31, 2023 October 31, 2022 $ % bps to 8.5%. The increase in dollars was primarily driven by the increase i
Slide 12: Income Statement Summary
Income Statement Summary ($ in millions) Three Months Ended The effective tax rate for the third (share count in millions) quarter was 24% compared to an (unaudited) October 31, 2023 % of Net Sales October 31, 2022 % of Net Sales effective tax rate of 29% in the third quarter of fiscal 2023. The Net
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of October 31, 2023, cash (unaudited) October 31, 2023 October 31, 2022 and marketable securities totaled $588 million with $0 drawn down Assets on our $350 million asset backed Cash and Cash Equivalents $ 206 $ 147 line of credit facility. Marketable Securit
Slide 14: Cash Flows Summary
Cash Flows Summary ($ in millions) Nine Months Ended (unaudited) October 31, 2023 October 31, 2022 Cash Flows from Operating Activities Net Income $ 240 $ 128 Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: Depreciation & Amortization 75 78 Inventory (135)
Slide 15: Inventory Data
Inventory Data ($ in millions) Cost Variance (unaudited) October 31, 2023 October 31, 2022 $ % URBN Total Inventory $ 721.0 $ 743.6 $ (22.6) (3%) Retail Segment Total Inventory $ 679.8 $ 682.0 $ (2.2) flat Retail Segment Comparable Inventory by Brand 558.3 551.5 $ 6.8 1% Anthropologie 280.3 272.8 7.
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 third quarter, capital expenditures were $73 million while depreciation & amortization wa
Slide 17: Shares Outstanding
Shares Outstanding ($ 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–Q3 FY’24 Q4 FY’24 Projected Open as of Open as of Projected Projected Open as of January 31, 2023 Openings Closings October 31, 2023 Openings Closings January 31, 2024 Anthropologie NA 217 5 4 218 2 2 218 Anthropologie EU 21 – – 21 – 2 19 Total Anthropologie 238 5 4 2
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