Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q2 FY2021 Earnings Presentation
18 slides from Urban Outfitters's earnings presentation, August 2020
Slide 1: FY'21 Q2 Results
Urban Outfitters, Inc. F Y ’ 21 Q2 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2021 second quarter commentary ahead of our earnings call scheduled for August 25th 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. Ou
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 declined by 17% to $803 million. The decrease in sales was due in part to a Retail segment sales decline of 14% and a 51% decline in July 31, 2020 July 31, 2019 Wholesale segment sales. Gross profit dollars decreased by 25
Slide 5: Sales by Segment
Sales by Segment ($ in millions) Three Months Ended Variance Total Company or URBN sales for the second (unaudited) quarter decreased by 17% to $803 million. July 31, 2020 July 31, 2019 $ % URBN Retail segment sales declined 14% to Total Sales $ 803.3 $ 962.3 $ (159.0) -17% $757 million. The decreas
Slide 6: Revenue Metrics – Anthropologie Group
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group brand sales decreased (unaudited) by 25% to $295 million. July 31, 2020 July 31, 2019 $ % Total Sales $ 295.1 $ 394.3 $ (99.2) -25% The decline in Anthropologie sales during the quarter primarily related to the 25%
Slide 7: Revenue Metrics – Free People
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales decreased by 14% to (unaudited) $178 million for the quarter. This decrease was due July 31, 2020 July 31, 2019 $ % to a 52% decline in Wholesale segment sales while Total Sales $ 178.0 $ 205.9 $ (27.9) -14% Re
Slide 8: Revenue Metrics – Urban Outfitters
Revenue Metrics ($ in millions) Three Months Ended Variance Total Urban Outfitters brand sales decreased by (unaudited) 9% to $324 million for the quarter. July 31, 2020 July 31, 2019 $ % Total Sales $ 323.9 $ 355.0 $ (31.1) -9% The decline in Urban Outfitters sales during the quarter primarily rela
Slide 9: Gross Profit by Segment
Gross Profit by Segment Three Months Ended Total Company gross profit dollars decreased by 25% to $238 million for the ($ in millions) Variance (unaudited) quarter, while gross profit rate declined 319 bps to 29.6%. The decline in gross profit rate was due to an increase in delivery and logistics ex
Slide 10: SG&A–Total Company
SG&A–Total Company ($ in millions) Three Months Ended Variance SG&A expenses decreased by 29% to $169 million (unaudited) while SG&A as a % of sales leveraged by 372 bps July 31, 2020 July 31, 2019 $ % to 21%. The leverage in SG&A as a rate to sales SG&A* $’s $ 168.6 $ 237.8 $ (69.2) -29% was primar
Slide 11: Operating Income by Segment
Operating Income by Segment Three Months Ended Operating income dollars decreased by 11% to ($ in millions) Variance (unaudited) $69 million while operating income rate improved July 31, 2020 July 31, 2019 $ % by 53bps to 8.6%. The decrease in dollars was due Operating Income $’s $ 69.4 $ 78.1 $ (8.
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 50% July 31, 2020 % of Net Sales July 31, 2019 % of Net Sales compared to 26% in the prior Net Sales $ 803.3 100 % $ 962.3 100% year quarter. The increa
Slide 13: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of July 31, 2020, (unaudited) July 31, 2020 July 31, 2019 Inventory decreased 20% Assets to $352 million, driven by Cash and Cash Equivalents $ 663 $ 162 a 14% decrease in Retail Marketable Securities 1 171 segment inventory and a Accounts Receivable, Net 60
Slide 14: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance July 31, 2020 July 31, 2019 $ % URBN Inventory $ 351.8 $ 440.1 $ (88.3) -20% Retail Segment by Brand $ 321.9 $ 376.1 $ (54.2) -14% Anthropologie Group 142.4 172.2 (29.8) -17% Free People 51.0 50.1 0.9 2% Urban Outfitters 128.5 153.8 (25.3) -16% Who
Slide 15: Capital Spending
Capital Spending ($ in millions) (unaudited) Net Capex % of Net Sales $ 250 Home Office 5.5% $ 200 Fulfillment $ 150 Technology 2.9% $ 100 2.3% Stores $ 50 FY’ 18 FY’ 19 FY’ 20 Projected FY’ 21 During the second quarter, capital expenditures were $29 million while depreciation & amortization was $25
Slide 16: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) Ending Shares Outstanding 140 130 120 110 100 90 Q 1 Q2 FY ’16 FY ’17 FY ’18 FY ’19 FY ’20 FY ’21 Shares Repurchased Number of Shares 15 1.3 8.1 3.5 8.1 0.5 Total Cost $ 465 $ 46 $ 157 $ 121 $ 217 $7 The Company did not repurch
Slide 17: Global Retail Stores Summary
Global Retail Stores Summary Q1–Q2 FY’21 Projected Q3–Q4 FY’21 Projected Open as of Open as of Projected Projected Open as of January 31, 2020 Openings Closings July 31, 2020 Openings Closings January 31, 2021 Anthropologie Group NA 211 1 – 212 3 2 213 Anthropologie Group EU 20 1 – 21 1 – 22 Total A
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 M&V URBN * FY‘20 Q1 Store Count 228 136 245 12 621 Selling SF 1,782 304 2,196 n/a 4,282 Q2 Store Count 228 137 246 11 622 Selling SF 1,782 306 2,203 n/a 4,291 Q3 Store Count 231 143