Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Q4 FY2020 Earnings Presentation
20 slides from Urban Outfitters's earnings presentation, March 2020
Slide 1: FY'20 Q4 Results
Urban Outfitters, Inc. F Y ’ 20 Q4 RESULTS
Slide 2: Introduction
Introduction Urban Outfitters, Inc. “URBN” is providing fiscal 2020 fourth quarter commentary ahead of our earnings call scheduled for March 3rd at 5:30pm. We remind you that any forward-looking statements made in this commentary are subject to our safe harbor statement found in our SEC filings. Our
Slide 3: Important Information Regarding Non-GAAP Financial Measures
Important Information Regarding Non-GAAP Financial Measures In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the
Slide 4: Table of Contents
Table of Contents Key Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Sales by Segment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 5: Key Financial Highlights
Key Financial Highlights Three Months Ended URBN sales for the fourth quarter increased by 4% to $1.2 billion, a new Company record. The increase in sales was driven by Retail segment sales comp of 4%, non-comp store January 31, 2020 January 31, 2019 sales of $6 million and $6 million of Subscriptio
Slide 6: Sales by Segment
Sales by Segment Three Months Ended Total Company or URBN sales for the fourth quarter ($ in millions) Variance (unaudited) increased by 4% to $1.2 billion. The increase in sales January 31, 2020 January 31, 2019 $ % was driven by Retail segment sales comp of 4%, Total Sales $ 1,169.6 $ 1,128.9 $ 40
Slide 7: Revenue Metrics (Anthropologie Group)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Anthropologie Group brand sales increased by (unaudited) 6% to $491 million. The growth in brand sales was January 31, 2020 January 31, 2019 $ % driven by a 6% increase in Retail segment comp, Total Sales $ 491.1 $ 464.6 $ 26.5 6% $1
Slide 8: Revenue Metrics (Free People)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Free People brand sales increased by 3% to (unaudited) $216 million for the quarter. This increase was January 31, 2020 January 31, 2019 $ % driven by a strong Retail segment sales comp of Total Sales $ 215.8 $ 209.3 $ 6.5 3% 9% and $
Slide 9: Revenue Metrics (Urban Outfitters)
Revenue Metrics ($ in millions) Three Months Ended Variance Total Urban Outfitters brand sales increased by 1% (unaudited) to $450 million for the quarter as a result of a $2 January 31, 2020 January 31, 2019 $ % million in non-comp sales growth and $0.7 million Total Sales $ 449.9 $ 447.5 $ 2.4 1%
Slide 10: Adjusted Gross Profit by Segment
Adjusted Gross Profit by Segment Three Months Ended Total Company adjusted gross profit decreased 7% to $348 ($ in millions) Variance (unaudited) million, while the adjusted gross profit rate declined by 351 January 31, 2020 January 31, 2019 $ % basis points to 29.8%. The decline in the total Compan
Slide 11: SG&A–Total Company
SG&A–Total Company Three Months Ended Total Company SG&A increased 9% to $281 million. ($ in millions) Variance (unaudited) Total Company SG&A as a percentage of sales increased January 31, 2020 January 31, 2019 $ % by 117 bps to 24.1%. The deleverage in SG&A as a rate SG&A* $’s $ 281.3 $ 258.3 $ 23
Slide 12: Adjusted Operating Income by Segment
Adjusted Operating Income by Segment Three Months Ended Adjusted operating income decreased by 43% to ($ in millions) Variance (unaudited) $67 million, while adjusted operating profit margin January 31, 2020 January 31, 2019 $ % deleveraged by 469 basis points to 5.7%. The decline Operating Income $
Slide 13: Income Statement Summary (January 31, 2020)
Income Statement Summary ($ in millions) Three Months Ended January 31, 2020 The adjusted effective (share count in millions) tax rate for the fourth (unaudited) As Reported % of Net Sales Total Adjustments Adjusted % of Net Sales quarter was 28.0%. The increase in adjusted Net Sales $ 1,169.6 100 %
Slide 14: Income Statement Summary (January 31, 2019)
Income Statement Summary ($ in millions) Three Months Ended January 31, 2019 (share count in millions) (unaudited) As Reported % of Net Sales Total Adjustments Adjusted % of Net Sales Net Sales $ 1,128.9 100 % $ – $ 1,128.9 100 % Cost of Sales (excluding Store Impairment) 752.9 66.7 – 752.9 66.7 Sto
Slide 15: Balance Sheet Summary
Balance Sheet Summary ($ in millions) As of January 31, 2020, (unaudited) January 31, 2020 January 31, 2019 Inventory increased 11% to $410 million, driven by a 48% increase Assets in Wholesale segment inventory. Cash and Cash Equivalents $ 222 $ 358 URBN Wholesale segment Marketable Securities 211
Slide 16: Inventory Data
Inventory Data ($ in millions) (unaudited) Variance January 31, 2020 January 31, 2019 $ % URBN Inventory $ 409.5 $ 370.5 $39.0 11% Retail Segment Comparable Inventory at Cost $ 282.1 $ 282.0 $ 0.1 flat Anthropologie Group 136.8 138.2 (1.4) -1% Free People 40.5 38.9 1.6 4% Urban Outfitters 104.8 104.
Slide 17: 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 fourth quarter, capital expenditures were $46 million while depreciation & amortization was $29
Slide 18: Shares Outstanding
Shares Outstanding ($ in millions) (share count in millions) (unaudited) Ending Shares Outstanding 140 130 120 110 100 90 Q 1 Q 2 Q 3 Q4 FY ’15 FY ’16 FY ’17 FY ’18 FY ’19 FY ’20 Shares Repurchased Number of Shares 17.4 15.0 1.3 8.1 3.5 8.1 Total Cost $ 611 $ 465 $ 46 $ 157 $ 121 $ 217 The Company d
Slide 19: Global Retail Stores Summary
Global Retail Stores Summary YTD FY’20 Projected FY’21 Projected Open as of Open as of Projected Projected Open as of January 31, 2019 Openings Closings January 31, 2020 Openings Closings January 31, 2021 Anthropologie Group NA 216 – 5 211 9 4 216 Anthropologie Group EU 11 9 – 20 3 – 23 Total Anthro
Slide 20: 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 F&B URBN * FY‘ 19 Q1 Store Count 226 134 246 10 616 Selling SF 1,733 291 2,208 n/a 4,232 Q2 Store Count 227 135 246 10 618 Selling SF 1,750 298 2,208 n/a 4,256 Q3 Store Count 228 13