Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Shareholder Meeting (May 2012)
41 slides from Urban Outfitters's shareholder meeting presentation, May 22, 2012
Slide 1: Annual Meeting of Shareholders
URBAN OUTFITTERS, INC. ANNUAL MEETING OF SHAREHOLDERS May 22, 2012
Slide 2: Forward-looking statements
“The following discussions may include forward-looking statements. Please note that actual results may differ materially from those statements. Additional information concerning factors that could cause actual results to differ materially from projected results is contained in the Company’s filings
Slide 3: Agenda
AGENDA • Call to order and introductions • New business • Business review • Closing and adjournment
Slide 4: Introductions: Current Directors
INTRODUCTIONS CURRENT DIRECTORS: • Ed Antoian • Scott Belair • Harry Cherken • Jes Lawson • Bob Strouse • Dick Hayne
Slide 5: Introductions: Class III Directors Election
INTRODUCTIONS CLASS III DIRECTORS ELECTION: • Richard A. Hayne • Harry S. Cherken, Jr.
Slide 6: Introductions: Meeting Assistants
INTRODUCTIONS MEETING ASSISTANTS • Glen Bodzy – Company Secretary and Judge of Elections • Felix Orihuela – American Stock Transfer & Trust Company, LLC • Robert McNeill – Audit Partner, Deloitte & Touche, LLP
Slide 7: New Business
NEW BUSINESS • Mailing and notice and presence of quorum • Election of directors • Ratify: Appointment of Deloitte & Touche, LLP • Shareholder proposals
Slide 8: Business Review
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 BUSINESS REVIEW
Slide 9: FY12 Highlights
FY12 HIGHLIGHTS • $2.5 billion in total sales (+9%) • $0.5 billion in direct-to-consumer sales (+15%) • 57 new stores opened, including 10 outside the U.S. • Operating profit was approximately 12% of sales
Slide 10: Sales
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 SALES
Slide 11: Total Company Sales
TOTAL COMPANY SALES $ MILLION 2,473.8 2,274.1 1,834.6 1,937.8 1,507.7 FY08 FY09 FY10 FY11 FY12
Slide 12: Sales by Quarter
SALES BY QUARTER $ MILLION 730.6 668.4 609.2 610.0 552.2 573.6 524.0 480.0 Q1 Q2 Q3 Q4 FY11 FY12 Note: May not foot with prior page due to rounding.
Slide 13: Sales by Brand
SALES BY BRAND $ MILLION ANTHROPOLO ANTHROPOLOGIE GIE $1,044.5 URBAN $1,044.5 (42%) OUTFITTERS $1,155.3 (47%) NEW CONCEPTS FREE PEOPLE $23.6 $250.4 (1%) (10%)
Slide 14: Sales by Channel
SALES BY CHANNEL $ MILLION DIRECT $505.0 (20%) WHOLESALE $133.0 (6%) STORES $1,835.8 (74%) Note: “Direct” includes e-commerce, catalog, and mobile sessions, the last of which accounts for over 5.4% of sessions at our largest brands.
Slide 15: Stores
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 STORES
Slide 16: New Stores Opened
NEW STORES OPENED OPEN AS OF NET OPENINGS OPEN AS OF 2/1/11 DURING FY12 1/31/12 ANTHROPOLOGIE 153 15 168 FREE PEOPLE 42 20 62 URBAN OUTFITTERS 176 21 197 BHLDN 0 1 1 TERRAIN 1 0 1 TOTAL 372 57 429
Slide 17: New Stores: Anthropologie – Edinburgh
NEW STORES: ANTHROPOLOGIE – EDINBURGH
Slide 18: New Stores: Free People – Walnut Street
NEW STORES: FREE PEOPLE – WALNUT STREET
Slide 19: New Stores: Urban Outfitters – Frankfurt
NEW STORES: URBAN OUTFITTERS – FRANKFURT
Slide 20: New Stores: Urban Outfitters – Berlin
NEW STORES: URBAN OUTFITTERS – BERLIN
Slide 21: New Stores: BHLDN – Houston
OEE NEW STORES: BHLDN — HOUSTON
Slide 22: Direct
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 DIRECT
Slide 23: Selected Statistics
SELECTED STATISTICS FY11 FY12 CHANGE ORDERING COUNTRIES 143 172 20% VISITORS (M) 114 149 31% PAGE VIEWS (M) 3,000 3,679 23% AVERAGE TIME ON SITE 9:08 8:45 -4% Note: “Ordering countries” includes sovereign nations from which an order was received. It does not include other territories, regions, or pr
Slide 24: Key Factors Driving Traffic & Conversion
KEY FACTORS DRIVING TRAFFIC & CONVERSION • Increased product assortment • Focus on web marketing • Social media • Customer analytics • Shipping promotions • Site usability enhancements
Slide 25: Social Media
OEE SOCIAL MEDIA
Slide 26: Wholesale
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 WHOLESALE
Slide 27: Key Initiatives
KEY INITIATIVES • Increased productivity in existing doors • Increased product assortment • Ecommerce • New accounts • International expansion
Slide 28: Geographies
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 GEOGRAPHIES
Slide 29: Customer Sales by Region
CUSTOMER SALES BY REGION NORTH AMERICA 90% EUROPE ASIA/ OTHER 9% 1% Note: “Customer sales” represents approximate FY12 net sales through retail stores, direct customer orders, and wholesale shipments to the identified geographies.
Slide 30: Population, GDP, and Expenditures on Apparel
POPULATION, GDP, AND EXPENDITURES ON APPAREL U.S. & CANADA EUROPE CHINA, JAPAN, & KOREA TOTAL POPULATION 348.1 MILLION 503.8 MILLION 1,470.6 MILLION TOTAL GDP $16.4 TRILLION $17.7 TRILLION $15.7 TRILLION TOTAL APPAREL SPEND $316.2 BILLION $366.3 BILLION $294.4 BILLION Notes: (a) Includes 313.8 milli
Slide 31: URBN Geographic Penetration
URBN GEOGRAPHIC PENETRATION 1 1 15 3 23 2 3 381 U.S. & CANADA EUROPE CHINA, JAPAN, & KOREA STORES 396 33 0 (a) WHOLESALE ACCOUNTS 1,241 13 56 (b) WEB SESSIONS 270,417,096 50,786,101 2,814,942 Notes: (a) There are another 29 wholesale accounts in other geographies (rest of world).
Slide 32: Earnings
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 EARNINGS
Slide 33: Total Operating Income
TOTAL OPERATING INCOME $ MILLION 414.2 339.0 299.4 284.7 224.9 FY08 FY09 FY10 FY11 FY12 % sales 14.9% 16.3% 17.5% 18.2% 11.5%
Slide 34: Share Information
SHARE INFORMATION FY08 FY09 FY10 FY11 FY12 (a) DILUTED SHARES (M) 169.6 170.9 171.2 170.3 156.2 DILUTED EPS $0.94 $1.17 $1.28 $1.60 $1.19 Notes: (a) Includes the repurchase of roughly 6.3 million shares during FY11 and 20.5 million shares during FY12.
Slide 35: FY12 Review
FY12 REVIEW • Achieved record sales • Opened 57 new stores • Direct-to-consumer channel grew by 16% • Wholesale revenues grew by 11% • International sales, including DTC, grew 23% • Infrastructure investments to support DTC & international growth – Rushden, England: 98,000 sq ft distribution & 142,0
Slide 36: The Future
URBAN OUTFITTERS, INC. ANNUAL MEETING, 2012 THE FUTURE
Slide 37: Key Assumptions
KEY ASSUMPTIONS • Globalization trend will continue • Localization grows at the same time • The digitalization of retail continues to accelerate
Slide 38: Driving Revenue Growth
DRIVING REVENUE GROWTH • Grow geographically – North America – Europe – Asia • Grow all channels – Open additional stores – Expand wholesale offering Key to execution: – Grow e-commerce our talent – Expand m-commerce • Add additional product categories • Explore new concepts/ consider acquisitions
Slide 39: Growth Potential
GROWTH POTENTIAL U.S. & CANADA EUROPE CHINA, JAPAN, & KOREA FY12 FUTURE(a) FY12 FUTURE(a) FY12 FUTURE(a) STORES 396 600 33 75 0 10 (b) WHOLESALE ACCOUNTS 1,241 1,250 13 200 56 150 WEB SESSIONS 270,417,096 435,000,000 50,786,101 155,000,000 2,814,942 90,000,000 Notes: (a) All figures are illustrative
Slide 40: Add Additional Product Categories
ADD ADDITIONAL PRODUCT CATEGORIES • Anthropologie – Petites – Home • Free People – Intimately Free • Urban Outfitters – Men’s – Electronics
Slide 41: Annual Meeting of Shareholders
URBAN OUTFITTERS, INC. ANNUAL MEETING OF SHAREHOLDERS May 22, 2012