PHILADELPHIA, PA, May 18, 2015 -
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 $33 million for the three months ended April 30,
2015. Earnings per diluted share were $0.25 for the three
months ended April 30, 2015.
Total Company net sales for the first
quarter of fiscal 2016 increased 8% over the same quarter last year
to a record $739 million. Comparable Retail segment net sales,
which include our comparable direct-to-consumer channel, increased
4%. Comparable Retail segment net sales increased 17% at Free
People, 5% at Urban Outfitters and 1% at the Anthropologie Group.
Wholesale segment net sales rose 18%.
"I am pleased to announce record first quarter
sales and positive Retail segment comparable net sales at each of
our brands," said Richard A. Hayne, Chief Executive Officer.
"I believe our Retail segment comparable net sales growth is being
driven by the success of our omni-channel strategy," finished Mr.
Hayne.
Net sales by brand and segment for the three month
period were as follows:
|
Three Months
Ended |
|
|
April 30, |
|
Net sales by brand |
2015 |
|
2014 |
|
Urban
Outfitters |
$ 295,675 |
|
$ 277,656 |
|
Anthropologie Group1 |
311,376 |
|
299,983 |
|
Free
People |
131,959 |
|
108,671 |
|
Total
Company |
$ 739,010 |
|
$ 686,310 |
|
|
|
|
|
|
Net sales by segment |
|
|
|
|
Retail
Segment |
$ 685,009 |
|
$ 640,430 |
|
Wholesale Segment |
54,001 |
|
45,880 |
|
Total
Company |
$ 739,010 |
|
$ 686,310 |
|
1Anthropologie
Group consists of the Anthropologie, Bhldn and Terrain brands
For the three months ended April 30, 2015, the
gross profit rate decreased by 141 basis points versus the prior
year's comparable period. The decline in gross profit rate was
primarily due to lower initial margins at the Urban Outfitters
Brand and higher delivery and fulfillment expense across the entire
company. The deleverage in delivery and fulfillment expenses
were partially due to the increase in direct-to-consumer
penetration and the beginning of the South Carolina fulfillment
center transition to Gap, Pennsylvania.
As of April 30, 2015, total inventories increased
by $49 million, or 14%, on a year-over-year basis. The growth in
total inventories is primarily related to an increase in comparable
Retail segment inventories and the acquisition of inventory to
stock new and non-comparable stores. Comparable Retail segment
inventories increased 8% at cost while decreasing 5% in units.
For the three months ended April
30, 2015, selling, general and administrative expenses, expressed
as a percentage of net sales, increased by 13 basis points when
compared to the prior year period. The increase was primarily due
to increased marketing and technology expenses that were used to
drive higher direct-to-consumer traffic.
The Company's effective tax rate for the first
quarter of fiscal 2016 was 35.6% compared to 37.0% in the prior
year period. The tax rate variance is due to state tax adjustments
in the prior year quarter.
On May 27, 2014, the Board of Directors authorized
the repurchase of 10.0 million common shares under a share
repurchase program. During fiscal 2015, the Company
repurchased and retired 7.7 million common shares for approximately
$258 million under this authorization. During the first quarter of
fiscal 2016, the Company repurchased 0.4 million shares for
approximately $17 million under this authorization. On August 27,
2013, the Board of Directors authorized the repurchase of 10.0
million common shares under a share repurchase program. During the
first quarter of fiscal 2015, the Company repurchased and retired
9.7 million common shares for approximately $353 million completing
the August 27, 2013 share repurchase authorization. On
February 23, 2015, the Board of Directors authorized the repurchase
of 20.0 million shares under a new share repurchase program. No
shares have been repurchased under this authorization.
During the three months ended
April 30, 2015, the Company opened a total of 7 new stores
including: 4 Free People stores, 2 Anthropologie Group stores and 1
Urban Outfitters store. The Company closed 1 Urban Outfitters
store.
Urban Outfitters, Inc. is an
innovative specialty retail company which offers a variety of
lifestyle merchandise to highly defined customer niches through 238
Urban Outfitters stores in the United States, Canada, and Europe,
catalogs and websites; 208 Anthropologie Group stores in the United
States, Canada and Europe, catalogs and websites; 106 Free People
stores in the United States and Canada, catalogs and websites; Free
People wholesale, which sells its product to approximately 1,600
specialty stores and select department stores worldwide; as of
April 30, 2015.
Management's first quarter commentary is located
on our website at www.urbanoutfittersinc.com. A
conference call will be held today to discuss first quarter results
and will be webcast at 5:00 pm. ET at:
http://edge.media-server.com/m/p/ytgdi8px/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 a worldwide political and economic 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 executives, 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, failure of our
manufacturers to comply with our social compliance program, 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 |
|
|
April
30, |
|
|
2015 |
|
2014 |
|
|
|
|
|
|
Net
sales |
$ 739,010 |
|
$ 686,310 |
|
Cost
of sales |
492,589 |
|
447,799 |
|
Gross profit |
246,421 |
|
238,511
|
|
Selling, general and administrative expenses |
193,367 |
|
178,690 |
|
Income from operations |
53,054 |
|
59,821 |
|
Other
expense, net |
(2,121) |
|
(344) |
|
Income before income taxes |
50,933 |
|
59,477 |
|
Income
tax expense |
18,157 |
|
21,999 |
|
Net income |
$ 32,776 |
|
37,478 |
|
|
|
|
|
|
Net
income per common share: |
|
|
|
|
Basic |
$ 0.25 |
|
$ 0.26 |
|
Diluted |
$ 0.25 |
|
$ 0.26 |
|
|
|
|
|
|
Weighted average common shares and common |
|
|
|
|
share equivalents outstanding: |
|
|
|
|
Basic |
131,202,740 |
|
144,075,666 |
|
Diluted |
132,836,144 |
|
145,906,544 |
|
|
|
|
|
|
|
|
|
|
|
AS A
PERCENT OF NET SALES |
|
|
|
|
Net
sales |
100.0% |
|
100.0% |
|
Cost
of sales |
66.7% |
|
65.2% |
|
Gross profit |
33.3% |
|
34.8% |
|
Selling, general and administrative expenses |
26.1% |
|
26.1% |
|
Income from operations |
7.2% |
|
8.7% |
|
Other
expense, net |
(0.3%) |
|
(0.0%) |
|
Income before income taxes |
6.9% |
|
8.7% |
|
Income
tax expense |
2.5% |
|
3.2% |
|
Net income |
4.4% |
|
5.5% |
|
URBAN OUTFITTERS,
INC.
Condensed Consolidated Balance
Sheets
(in thousands, except share and per share
data)
(unaudited)
|
|
|
|
|
April 30,
2015 |
|
January 31,
2015 |
|
April 30,
2014 |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ 176,931 |
|
$ 154,558 |
|
$ 191,825 |
Marketable securities |
96,626 |
|
104,246 |
|
149,796 |
Accounts receivable, net of allowance for doubtful accounts |
|
|
|
|
|
of
$767, $850 and $1,986 respectively |
54,283 |
|
70,458 |
|
59,267 |
Inventories |
397,998 |
|
358,237 |
|
349,045 |
Prepaid expenses, deferred taxes and other current assets |
119,083 |
|
121,618 |
|
103,097 |
Total current assets |
844,921 |
|
809,117 |
|
853,030 |
|
|
|
|
|
|
Property
and equipment, net |
899,324 |
|
889,232 |
|
836,244 |
Marketable securities |
83,348 |
|
104,448 |
|
175,694 |
Deferred
income taxes and other assets |
89,763 |
|
85,944 |
|
80,297 |
Total Assets |
$ 1,917,356 |
|
$ 1,888,741 |
|
$ 1,945,265 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ 145,379 |
|
$ 156,090 |
|
$ 172,515 |
Accrued expenses, accrued compensation and other current
liabilities |
175,262 |
|
197,650 |
|
189,585 |
Total current liabilities |
320,641 |
|
353,740 |
|
362,100 |
|
|
|
|
|
|
Deferred
rent and other liabilities |
208,274 |
|
207,032 |
|
196,760 |
Total Liabilities |
528,915 |
|
560,772 |
|
558,860 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Preferred shares; $.0001 par value, 10,000,000 shares authorized,
none issued |
- |
|
- |
|
- |
Common shares; $.0001 par value, 200,000,000 shares authorized,
131,543,388 |
|
|
|
|
|
130,502,864 and 137,651,372 issued and outstanding
respectively |
13 |
|
13 |
|
14 |
Additional paid-in-capital |
24,593 |
|
- |
|
- |
Retained earnings |
1,376,159 |
1,343,383 |
|
1,384,671 |
Accumulated other comprehensive income (loss) |
(12,320) |
|
(15,427) |
|
1,720 |
Total Shareholders' Equity |
1,388,445 |
|
1,327,969 |
|
1,386,405 |
Total Liabilities and Shareholders' Equity |
$ 1,917,356 |
|
$ 1,888,741 |
|
$ 1,945,265 |
Contact:
Oona McCullough
Director of Investor Relations
(215) 454-4806
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Urban Outfitters via Globenewswire
HUG#1922284
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