2013-03-11 21:03:58 -
For Immediate Release
PHILADELPHIA, PA, March 11, 2013 - Urban Outfitters, Inc. (NASDAQ:URBN),
a leading lifestyle specialty retail company operating under the Anthropologie,
BHLDN, Free People, Terrain and Urban Outfitters brands, today announced net
income of $83 million and $237 million for the fourth quarter and year ended
January 31, 2013, respectively. Earnings per diluted share were $0.56 for the
quarter and $1.62 for the year.
Total Company net sales for the fourth quarter of fiscal 2013 increased to a
record $857 million or 17% over the same quarter last year. Comparable retail
segment net sales, which include our comparable direct-to-consumer channel,
increased 11% while comparable store net sales were flat. Direct-to-consumer
returns at stores are charged against store sales. Excluding these returns,
comparable store net sales would
have been low single-digit positive.
Comparable retail segment net sales increased 37% at Free People, 11% at Urban
Outfitters and 7% at Anthropologie. Direct-to-consumer net sales surged by 44%
for the quarter and wholesale segment net sales rose 22%.
For the year ended January 31, 2013, total Company net sales increased to a
record $2.8 billion or 13% over the prior year. Comparable retail segment net
sales increased 7% while comparable store net sales decreased by 1%. Excluding
the direct-to-consumer returns at stores, comparable store net sales would have
been low single-digit positive. Direct-to-consumer net sales increased by 31%
for the year and wholesale segment net sales increased 12%.
"I congratulate each of our brand and shared service teams for delivering an
excellent fourth quarter," said Chief Executive Officer, Richard A. Hayne. "We
entered the year with a plan to invest in initiatives to drive top line growth
and improve margins. We succeeded on both fronts especially in the fourth
quarter. We will pursue a similar strategy in the current fiscal year as we
believe we have only begun to unlock the opportunities ahead of us," finished
Mr. Hayne.
Net sales by brand and channel for the three and twelve month periods were as
follows:
Three Months Ended Twelve Months Ended
January 31, January 31,
------------------------ -------------------------
Net sales by brand 2013 2012 2013 2012
------------ ----------- ---------- ---------
$ $ $
Urban Outfitters $ 415,483 356,769 1,324,381 1,155,293
Anthropologie 334,792 299,198 1,118,609 1,044,525
Free People 97,736 69,864 320,683 250,412
Other 8,821 4,817 31,252 23,571
------------ -------------- --------------- ------------
$ $ $
Total Company $ 856,832 730,648 2,794,925 2,473,801
------------ -------------- --------------- ------------
Net sales by channel
$ $ $
Retail Stores $ 577,558 532,043 1,982,944 1,835,831
Direct-to-consumer 240,541 166,935 663,340 504,963
------------ -------------- --------------- ------------
Retail Segment 818,099 698,978 2,646,284 2,340,794
------------ -------------- --------------- ------------
Wholesale Segment 38,733 31,670 148,641 133,007
------------ -------------- --------------- ------------
$ $ $
Total Company $ 856,832 730,648 2,794,925 2,473,801
------------ -------------- --------------- ------------
For the three months ended January 31, 2013, the gross profit rate improved by
650 basis points versus the prior year's comparable period. The increase in
gross profit rate was primarily due to a reduction in merchandise markdowns
across all brands. The Company also improved initial merchandise margins and
store occupancy leverage, partially offset by deleverage in delivery expense
primarily related to the increased penetration of the direct-to-consumer
channel. For the year ended January 31, 2013, the gross profit rate improved by
212 basis points versus the prior year's comparable period. The increase in the
rate was primarily due to a reduction in merchandise markdowns.
As of January 31, 2013, total inventories increased by $32 million, or 13%, on a
year-over-year basis. The growth in total inventories is primarily related to
the acquisition of inventory to stock new and non-comparable stores and to
support the significant growth in the direct-to-consumer channel. Comparable
retail segment inventories increased 6% and comparable store inventories
decreased by 3% as of January 31, 2013.
For the three months ended January 31, 2013, selling, general and
administrative expenses, expressed as a percentage of net sales, decreased by 7
basis points compared to the prior year period. The leveraging of direct store
controllable and shared services expenses was driven by the positive retail
segment comparable sales. This leverage was partially offset by higher equity
compensation expense as a result of an equity compensation expense reversal in
the prior year comparable period due to the departure of an executive officer.
For the year ended January 31, 2013, selling, general and administrative
expenses, expressed as a percentage of net sales, increased by 24 basis points.
This increase was primarily due to the deleveraging of direct store
controllable expenses driven by the negative comparable store net sales.
The Company's annual effective tax rate for fiscal 2013 increased to
36.8% as compared to 35.9% for fiscal 2012. The increase in the fiscal 2013
effective tax rate is partially due to certain nonrecurring state and foreign
tax adjustments.
During the year ended January 31, 2013, the Company opened a total of
49 new stores including: 18 Urban Outfitters stores, 15 Free People stores, 14
Anthropologie stores, 1 BHLDN store and 1 Terrain garden center, and closed 2
Anthropologie stores.
Urban Outfitters, Inc. is an innovative specialty retail company which offers a
variety of lifestyle merchandise to highly defined customer niches through 215
Urban Outfitters stores in the United States, Canada, and Europe, catalogs and
websites; 180 Anthropologie stores in the United States, Canada and Europe,
catalogs and websites; Free People wholesale, which sells its product to
approximately 1,400 specialty stores and select department stores, 77 Free
People stores in the United States and Canada, catalogs and websites; 2 BHLDN
stores and a website and 2 Terrain garden centers and a website, as of January
31, 2013.
Management's fourth quarter commentary is located on our website at
www.urbanoutfittersinc.com. A conference call will be held today to discuss
fourth quarter and year end results and will be webcast at 5:00 pm. EST at:
edge.media-server.com/m/p/ct7ov775/lan/en
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 constitute 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 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 the resultant impact on consumer spending patterns, lowered
levels of consumer confidence and higher levels of unemployment, continuation of
lowered levels of consumer spending resulting from the continuing worldwide
economic downturn and related debt crisis, any effects of terrorist acts or war,
natural disasters or severe weather conditions, 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 managers, import risks, including potential disruptions
and changes in duties, tariffs and quotas, the closing of any of our
distribution centers, our ability to protect our intellectual property rights,
risks associated with internet sales, response to new store concepts, potential
difficulty liquidating certain marketable security investments, 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.
###
(Tables follow)
URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
2012 2013
2012
2013
$ $ 730,648 $
Net sales 856,832 $ 2,794,925 2,473,801
Cost of sales,
including
certain buying,
distribution 510,668 1,613,265
and occupancy
costs 543,136 1,763,394
--------------- --------------- --------------- --------------
Gross 219,980 860,536
profit 313,696 1,031,531
Selling, general 155,448 575,811
and
administrative
expenses 181,774 657,246
--------------- --------------- --------------- --------------
Income 64,532 284,725
from operations 131,922 374,285
Other income, (212) 4,106
net 716 1,287
--------------- --------------- --------------- --------------
Income 64,320 288,831
before income
taxes 132,638 375,572
Income tax 25,065 103,580
expense 50,090 138,258
--------------- --------------- --------------- --------------
Net $ $ 39,255 $ $
income 82,548 237,314 185,251
--------------- --------------- --------------- --------------
Net income per
common share:
$ $ 0.27 $ $
Basic 0.57 1.63 1.20
$ $ 0.27 $ $
Diluted 0.56 1.62 1.19
Weighted average
common shares
and common
share
equivalents
outstanding:
Basic 145,936,131 144,268,135 145,253,691 154,025,589
Diluted 148,372,602 145,617,909 146,663,731 156,191,289
AS A PERCENT OF
NET SALES
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales,
including
certain buying,
distribution 69.9% 65.2%
and occupancy
costs 63.4% 63.1%
--------------- --------------- --------------- --------------
Gross 30.1% 34.8%
profit 36.6% 36.9%
Selling, general 21.3% 23.3%
and
administrative
expenses 21.2% 23.5%
--------------- --------------- --------------- --------------
8.8% 11.5%
Income from
operations 15.4% 13.4%
Other income, 0.0% 0.2%
net 0.1% 0.0%
--------------- --------------- --------------- --------------
Income 8.8% 11.7%
before income
taxes 15.5% 13.4%
Income tax 3.4% 4.2%
expense 5.9% 4.9%
--------------- --------------- --------------- --------------
Net 5.4% 7.5%
income 9.6% 8.5%
--------------- --------------- --------------- --------------
URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
January 31, January 31,
2013 2012
---------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 245,327 $ 145,273
Marketable securities 228,486 89,854
Accounts receivable, net of allowance
for doubtful accounts
of $1,681 and $1,614, respectively 39,519 36,673
Inventories 282,411 250,073
Prepaid expenses, deferred taxes and
other current assets 76,541 75,119
---------------- ----------------
Total current assets 872,284 596,992
Property and equipment, net 733,416 684,979
Marketable securities 149,585 126,913
Deferred income taxes and other assets 44,619 74,824
---------------- ----------------
Total Assets $ 1,799,904 $ 1,483,708
---------------- ----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 99,059 $ 95,754
Accrued expenses, accrued compensation 155,035 137,712
and other current liabilities
---------------- ----------------
Total current liabilities 254,094 233,466
Deferred rent and other liabilities 191,222 183,974
---------------- ----------------
Total Liabilities 445,316 417,440
Shareholders' equity:
Preferred shares; $.0001 par value, - -
10,000,000 shares authorized, none issued
Common shares; $.0001 par value,
200,000,000 shares authorized, 146,015,767
an
144,633,007 issued and outstanding 15 15
respectively
Additional paid-in-capital 48,276 -
Retained earnings 1,315,079 1,077,765
Accumulated other comprehensive loss (8,782) (11,512)
---------------- ----------------
Total Shareholders' Equity 1,354,588 1,066,268
---------------- ----------------
Total Liabilities and $ 1,799,904 $ 1,483,708
Shareholders' Equity
---------------- ----------------
Contact: Oona McCullough
Director of Investor Relations
(215) 454-4806
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Urban Outfitters via Thomson Reuters ONE
[HUG#1684529]
