checkAd

URBN Reports Q4 Results

Nachrichtenquelle: globenewswire
02.03.2021, 22:05  |  127   |   |   

PHILADELPHIA, March 02, 2021 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands comprised of the Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands, today announced net income of $29 million and $1 million for the three months and year ended January 31, 2021, respectively. Earnings per diluted share were $0.29 and $0.01 for the three months and year ended January 31, 2021, respectively. For the three months ended January 31, 2021, adjusted net income was $29 million and adjusted earnings per diluted share were $0.30. Adjusted net income and earnings per diluted share for the three months ended January 31, 2021, excludes store impairment charges. See “Reconciliation of Non-GAAP Financial Measures” included at the end of this release.

Total Company net sales for the three months ended January 31, 2021, decreased 6.9% over the same period last year to $1.09 billion. Comparable Retail segment net sales decreased 7% due to negative retail store net sales as stronger conversion rates could not offset the reduced store traffic caused by the coronavirus pandemic and related occupancy restrictions. Lower store net sales were partially offset by strong double-digit growth in digital channel sales. By brand, comparable Retail segment net sales increased 6% at Free People and decreased 6% at Urban Outfitters and 11% at the Anthropologie Group. Wholesale segment net sales decreased 7%.

For the year ended January 31, 2021, total Company net sales decreased 13.4% over the same period last year. Comparable Retail segment net sales decreased 11%, driven by negative retail store net sales due to mandated store closures as a result of the coronavirus pandemic and lower store productivity once opened, partially offset by strong double-digit growth in digital channel sales. Wholesale segment net sales decreased 40%.

“As we begin our new fiscal year, we are encouraged by the positive sales results all three brands delivered in North America quarter-to-date,” said Richard A. Hayne, Chief Executive Officer. “We’re particularly excited by the recent uptick in demand for ‘going-out’ type apparel and believe this bodes well for our spring and summer seasons,” finished Mr. Hayne.

Net sales by brand and segment for the three and twelve-month periods were as follows:

  Three Months Ended   Twelve Months Ended
  January 31,   January 31,
  2021   2020   2021   2020
Net sales by brand                      
Urban Outfitters $ 428,102   $ 449,939   $ 1,383,361   $ 1,496,249
Anthropologie Group   431,380     491,146     1,319,063     1,639,123
Free People   219,279     215,765     711,631     813,371
Menus & Venues   2,980     6,759     11,358     27,045
Nuuly   6,652     5,969     24,336     8,001
Total Company $ 1,088,393   $ 1,169,578   $ 3,449,749   $ 3,983,789
                       
Net sales by segment                      
Retail Segment $ 1,013,889   $ 1,090,552   $ 3,228,200   $ 3,648,938
Wholesale Segment   67,852     73,057     197,213     326,850
Subscription Segment   6,652     5,969     24,336     8,001
Total Company $ 1,088,393   $ 1,169,578   $ 3,449,749   $ 3,983,789
 

For the three months ended January 31, 2021, the gross profit rate decreased by 198 basis points and the adjusted gross profit rate decreased by 314 basis points versus the prior year’s comparable period. The decrease in adjusted gross profit rate was primarily due to the increase in delivery and logistics expenses due to the penetration of the digital channel as well as increased carrier surcharges. This was partially offset by lower merchandise markdowns in the Retail segment driven by the Urban Outfitters and Free People brands, benefits associated with negotiated rent concessions with landlords and European government assistance programs.

For the year ended January 31, 2021, the gross profit rate decreased to 25.0% of net sales, from 31.1% of net sales versus the prior year’s comparable period. The decrease in gross profit rate was primarily driven by an increase in delivery and logistics expense primarily due to penetration of the digital channel, followed by store occupancy expense rate deleverage. The deleverage in store occupancy expense was due to lower store net sales as a result of mandated store closures as well as lower store traffic once reopened due to the COVID-19 pandemic. Additionally, during the year ended January 31, 2021, the Company recorded a $14.6 million year-over-year increase in inventory obsolescence reserves and a $15.5 million store impairment charge, compared to a $14.6 million store impairment charge in the year ended January 31, 2020.

As of January 31, 2021, total inventory decreased by $19.9 million, or 4.9%, on a year-over-year basis driven by a 34% reduction in Wholesale segment inventory. Retail segment inventory was flat, as a 5% decline in comparable Retail segment inventory was offset by an increase in in-transit inventory due to global transportation delays.

For the three months ended January 31, 2021, selling, general and administrative expenses decreased by $27.0 million, or 9.6%, compared to the prior year’s comparable period and expressed as a percentage of net sales, leveraged by 69 basis points. The leverage in selling, general and administrative expenses was primarily related to disciplined store payroll management and overall expense control. Digital marketing expenses grew during the quarter to support the strong digital sales and customer growth.

For the year ended January 31, 2021, selling, general and administrative expenses decreased by $136.1 million, or 13.7%, compared to the prior year’s comparable period. Selling, general and administrative expenses as a percentage of sales decreased to 24.9% of net sales from 25.0% of net sales in the prior year’s comparable period. The leverage was primarily driven by disciplined store payroll management and other expense control measures partially offset by an increase in digital marketing and other expenses in order to support strong digital channel sales and customer growth. The decrease in selling, general and administrative expenses for the year ended January 31, 2021, was primarily due to disciplined store payroll management, overall expense control measures and the benefit of COVID-19 related government relief packages. During the year ended January 31, 2020, the Company recorded a charge of approximately $13.9 million related to goodwill impairment of the Menus & Venues division.

The Company’s effective tax rate for the three months ended January 31, 2021, was 19.7% compared to 50.7% in the prior year period. The adjusted effective tax rate for the three months ended January 31, 2021, was 19.9% compared to 28.0% in the prior year period. The decrease in the adjusted effective tax rate for the three months ended January 31, 2021, was primarily due to the ratio of foreign taxable losses to global taxable profits. The Company’s effective tax rate for the year ended January 31, 2021, was 64.8% compared to 29.9% in the prior year comparable period. The increase in the effective tax rate for the year ended January 31, 2021, was primarily due to the ratio of foreign taxable losses to global taxable profits and lower income before income taxes as compared to the prior year comparable period.

Net income for the three months and year ended January 31, 2021, was $29 million and $1 million, respectively, and earnings per diluted share were $0.29 and $0.01, respectively. For the three months ended January 31, 2021, adjusted net income was $29 million and adjusted earnings per diluted share were $0.30.

On August 22, 2017, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. The Company did not repurchase any shares during the fourth quarter, while during the year ended January 31, 2021, the Company repurchased and subsequently retired 0.5 million common shares for approximately $7 million under this program. These shares were repurchased prior to the known spread of the coronavirus pandemic in the United States that forced the Company to close its stores for an extended period of time. During the year ended January 31, 2020, the Company repurchased and subsequently retired 8.1 million common shares for approximately $217 million under this program. On June 4, 2019, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a new share repurchase program. As of January 31, 2021, 25.9 million common shares were remaining under the programs.

During the year ended January 31, 2021, the Company opened a total of 20 new retail locations including: 7 Urban Outfitters stores, 7 Anthropologie Group stores and 6 Free People stores (including 2 FP Movement stores); and closed 10 retail locations including: 8 Urban Outfitters stores, 1 Anthropologie Group store and 1 Free People store. During the year ended January 31, 2021, six franchisee-owned stores were closed including: four Urban Outfitters stores, one Anthropologie Group store and one Free People store.

Urban Outfitters, Inc., offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 247 Urban Outfitters stores in the United States, Canada and Europe and websites; 237 Anthropologie Group stores in the United States, Canada and Europe, catalogs and websites; 149 Free People stores in the United States, Canada and Europe, catalogs and websites, 11 Menus & Venues restaurants and 1 Urban Outfitters franchisee-owned store, as of January 31, 2021. Free People and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company’s Retail segment.

A conference call will be held today to discuss fourth quarter results and will be webcast at 5:30 pm. ET at: https://edge.media-server.com/mmc/p/fd34jazh

This news release is being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Certain matters contained in this release may contain forward-looking statements. When used in this release, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: the impacts of public health crises such as the coronavirus (COVID-19) pandemic, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, overall economic and market conditions and worldwide political events and the resultant impact on consumer spending patterns, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions or public health crises, increases in labor costs, increases in raw material costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, the departure of one or more key senior executives, import risks, changes to U.S. and foreign trade policies, including the enactment of tariffs, border adjustment taxes or increases in duties or quotas, the closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, risks associated with digital sales, our ability to maintain and expand our digital sales channels, response to new store concepts, our ability to integrate acquisitions, any material disruptions or security breaches with respect to our technology systems, failure of our manufacturers and third-party vendors to comply with our social compliance program, changes in our effective income tax rate (including the uncertainties associated with the U.S. Tax Cuts and Jobs Act), changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in the Company’s filings with the Securities and Exchange Commission. The Company disclaims any intent or obligation to update forward-looking statements even if experience or future changes make it clear that actual results may differ materially from any projected results expressed or implied therein.

URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Income
(amounts in thousands, except share and per share data)
(unaudited)

  Three Months Ended   Twelve Months Ended  
  January 31,   January 31,  
  2021   2020   2021   2020  
                         
Net sales $ 1,088,393   $ 1,169,578   $ 3,449,749   $ 3,983,789  
Cost of sales (excluding store impairment)   798,341     821,174     2,572,347     2,729,352  
Store impairment   968     14,611     15,496     14,611  
Gross profit   289,084     333,793     861,906     1,239,826  
Selling, general and administrative expenses   254,304     281,307     857,934     993,990  
Goodwill impairment       13,911         13,911  
Income from operations   34,780     38,575     3,972     231,925  
Other income (loss), net   802     1,041     (459 )   7,795  
Income before income taxes   35,582     39,616     3,513     239,720  
Income tax expense   7,008     20,077     2,277     71,624  
Net income $ 28,574   $ 19,539   $ 1,236   $ 168,096  
                         
Net income per common share:                        
Basic $ 0.29   $ 0.20   $ 0.01   $ 1.68  
Diluted $ 0.29   $ 0.20   $ 0.01   $ 1.67  
                         
Weighted-average common shares outstanding:                        
Basic   97,798,872     97,976,236     97,817,651     99,833,011  
Diluted   99,085,513     98,934,004     98,522,776     100,588,677  
                         
                         
AS A PERCENTAGE OF NET SALES                        
Net sales   100.0 %   100.0 %   100.0 %   100.0 %
Cost of sales (excluding store impairment)   73.3 %   70.2 %   74.6 %   68.5 %
Store impairment   0.1 %   1.3 %   0.4 %   0.4 %
Gross profit   26.6 %   28.5 %   25.0 %   31.1 %
Selling, general and administrative expenses   23.4 %   24.1 %   24.9 %   25.0 %
Goodwill impairment       1.1 %       0.3 %
Income from operations   3.2 %   3.3 %   0.1 %   5.8 %
Other income, net   0.1 %   0.1 %   0.0 %   0.2 %
Income before income taxes   3.3 %   3.4 %   0.1 %   6.0 %
Income tax expense   0.7 %   1.7 %   0.1 %   1.8 %
Net income   2.6 %   1.7 %   0.0 %   4.2 %
 

URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(amounts in thousands, except share data)
(unaudited)

  January 31,     January 31,  
  2021     2020  
ASSETS              
Current assets:              
Cash and cash equivalents $ 395,635     $ 221,839  
Marketable securities   174,695       211,453  
Accounts receivable, net of allowance for doubtful accounts of $4,028 and $880, respectively   89,952       88,288  
Inventory   389,618       409,534  
Prepaid expenses and other current assets   173,432       122,282  
Total current assets   1,223,332       1,053,396  
               
Property and equipment, net   967,422       890,032  
Operating lease right-of-use assets   1,114,762       1,170,531  
Marketable securities   123,662       97,096  
Deferred income taxes and other assets   117,167       104,578  
Total Assets $ 3,546,345     $ 3,315,633  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY              
Current liabilities:              
Accounts payable $ 237,386     $ 167,871  
Current portion of operating lease liabilities   254,703       221,593  
Accrued expenses, accrued compensation and other current liabilities   414,043       249,306  
Total current liabilities   906,132       638,770  
Non-current portion of operating lease liabilities   1,074,009       1,137,495  
Long-term debt          
Deferred rent and other liabilities   88,846       84,013  
Total Liabilities   2,068,987       1,860,278  
               
Shareholders’ equity:              
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued          
Common shares; $.0001 par value, 200,000,000 shares authorized, 97,815,985 and 97,976,815 issued and outstanding, respectively 10     10  
Additional paid-in-capital   19,360       9,477  
Retained earnings   1,475,108       1,473,872  
Accumulated other comprehensive loss   (17,120 )     (28,004 )
Total Shareholders’ Equity   1,477,358       1,455,355  
Total Liabilities and Shareholders’ Equity $ 3,546,345     $ 3,315,633  
 

URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Cash Flows
(amounts in thousands)
(unaudited)

  Twelve Months Ended  
  January 31,  
  2021   2020  
Cash flows from operating activities:            
Net income $ 1,236   $ 168,096  
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and amortization   103,771     112,256  
Non-cash lease expense   197,088     190,652  
(Benefit) provision for deferred income taxes   (14,270 )   1,451  
Share-based compensation expense   20,300     21,109  
Goodwill impairment       13,911  
Store impairment   15,496     14,611  
Loss on disposition of property and equipment, net   779     1,643  
Changes in assets and liabilities:            
Receivables   (1,223 )   (7,825 )
Inventory   22,381     (39,101 )
Prepaid expenses and other assets   (25,239 )   (16,308 )
Payables, accrued expenses and other liabilities   152,905     22,661  
Operating lease liabilities   (187,410 )   (209,263 )
Net cash provided by operating activities   285,814     273,893  
Cash flows from investing activities:            
Cash paid for property and equipment   (159,242 )   (217,433 )
Cash paid for marketable securities   (338,918 )   (397,220 )
Sales and maturities of marketable securities   396,260     428,508  
Net cash used in investing activities   (101,900 )   (186,145 )
Cash flows from financing activities:            
Borrowings under debt   220,000      
Repayments of debt   (220,000 )    
Proceeds from the exercise of stock options   495     974  
Share repurchases related to share repurchase program   (7,036 )   (217,421 )
Share repurchases related to taxes for share-based awards   (3,876 )   (5,600 )
Net cash used in financing activities   (10,417 )   (222,047 )
Effect of exchange rate changes on cash and cash equivalents   299     (2,122 )
Increase (decrease) in cash and cash equivalents   173,796     (136,421 )
Cash and cash equivalents at beginning of period   221,839     358,260  
Cash and cash equivalents at end of period $ 395,635   $ 221,839  
Supplemental cash flow information:            
Cash paid during the year for:            
Income taxes $ 25,572   $ 74,429  
Non-cash investing activities—Accrued capital expenditures $ 36,926   $ 10,497  
 

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 Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include store and goodwill impairment charges and income tax expense related to valuation allowances attributable to net losses of certain foreign operations. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures that exclude the impact of these non-core business items.

We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.


URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)

Reconciliation of Adjusted Gross Profit:                          
  Three Months Ended  
  January 31,  
  2021     2020  
  $'s   % of Net Sales     $'s   % of Net Sales  
                           
Gross profit (GAAP) $ 289,084     26.6 %   $ 333,793     28.5 %
Adjustments:                          
Store impairment charges (a)   968             14,611        
Adjusted gross profit (Non-GAAP) $ 290,052     26.7 %   $ 348,404     29.8 %
                           
Reconciliation of Adjusted Income from Operations:                          
  Three Months Ended  
  January 31,  
  2021     2020  
  $'s   % of Net Sales     $'s   % of Net Sales  
                           
Income from operations (GAAP) $ 34,780     3.2 %   $ 38,575     3.3 %
Adjustments:                          
Store impairment charges (a)   968             14,611        
Goodwill impairment charge (b)               13,911        
Adjusted income from operations (Non-GAAP) $ 35,748     3.3 %   $ 67,097     5.7 %
                           
Reconciliation of Adjusted Income Tax Expense and Adjusted Effective Tax Rate:  
  Three Months Ended  
  January 31,  
  2021     2020  
  $'s           $'s        
                           
Income before income taxes (GAAP) $ 35,582           $ 39,616        
Adjustments:                          
Store impairment charges (a)   968             14,611        
Goodwill impairment charge (b)               13,911        
Adjusted income before income taxes (Non-GAAP) $ 36,550           $ 68,138        
                           
Income tax expense (GAAP) $ 7,008           $ 20,077        
Adjustments:                          
Provision for income taxes on adjustments (c)   250             6,799        
Impact of income tax valuation allowances (d)               (7,809 )      
Adjusted income tax expense (Non-GAAP) $ 7,258           $ 19,067        
                           
Effective income tax rate (GAAP)   19.7 %           50.7 %      
Adjustments   0.2             (22.7 )      
Adjusted effective income tax rate (Non-GAAP)   19.9 %           28.0 %      
 

URBAN OUTFITTERS, INC.
Reconciliation of Non-GAAP Financial Measures
(amounts in thousands, except per share data)
(unaudited)

Reconciliation of Adjusted Net Income and Adjusted Diluted EPS:  
  Three Months Ended  
  January 31,  
  2021     2020  
  $'s   % of Net Sales     $'s   % of Net Sales  
                           
Net income (GAAP) $ 28,574     2.6 %   $ 19,539     1.7 %
Adjustments:                          
Store impairment charges (a)   968             14,611        
Goodwill impairment charge (b)               13,911        
Provision for income taxes on adjustments (c)   (250 )           (6,799 )      
Impact of income tax valuation allowances (d)               7,809        
Adjusted net income (Non-GAAP) $ 29,292     2.7 %   $ 49,071     4.2 %
                           
Diluted EPS (GAAP) $ 0.29           $ 0.20        
Adjustments, net of tax   0.01             0.30        
Adjusted diluted EPS (Non-GAAP) $ 0.30           $ 0.50        
                           
(a) Store impairment charges relate to three retail locations during the three months ended January 31, 2021 and eight retail locations during the three months ended January 31, 2020. The Company assessed the current and future performance of its retail locations and it was determined that these locations would not be able to generate sufficient cash flow over the expected remaining lease term to recover the carrying value of the property and equipment.  
                           
(b) The Company evaluated the fair value of the Menus & Venues division as compared to the carrying value and determined that the goodwill assigned to the reporting unit is impaired in full.  
                           
(c) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments.  
                           
(d) During the three months ended January 31, 2020, the Company recorded income tax expense related to valuation allowances attributable to net losses of certain foreign operations.  


Contact: Oona McCullough
  Director of Investor Relations
  (215) 454-4806

Urban Outfitters Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



Wertpapier



0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

URBN Reports Q4 Results PHILADELPHIA, March 02, 2021 (GLOBE NEWSWIRE) - Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands comprised of the Anthropologie, BHLDN, Free People, FP …

Nachrichten des Autors

Titel
Titel
Titel
Titel