PHILADELPHIA, PA, May 18, 2016 -
Urban Outfitters, Inc. (NASDAQ:URBN), a portfolio of global
consumer brands comprised of Anthropologie, BHLDN, Free People,
Terrain, Urban Outfitters and Vetri Family brands, today announced
net income of $30 million for the three months ended April 30,
2016. Earnings per diluted share were $0.25 for the three months
ended April 30, 2016.
Total Company net sales for the first quarter of
fiscal 2017 increased 3% over the same quarter last year to a
record $763 million. Comparable Retail segment net sales, which
include our comparable direct-to-consumer channel, increased 1%,
which includes the benefit of a leap year. Comparable Retail
segment net sales increased 2% at Urban Outfitters, were flat at
the Anthropologie Group and decreased 2% at Free People. Wholesale
segment net sales increased
16%.
"We are pleased to announce record first quarter
sales and improved gross profit margins," said Richard A. Hayne,
Chief Executive Officer. "These results were driven by more
compelling product assortments, improved inventory management and
stronger marketing," 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 |
2016 |
|
2015 |
|
Urban Outfitters |
$
299,300 |
|
$
295,675 |
|
Anthropologie
Group |
315,334 |
|
311,376 |
|
Free People |
144,514 |
|
131,959 |
|
Other1 |
3,429 |
|
- |
|
Total Company |
$ 762,577 |
|
$ 739,010 |
|
|
|
|
|
|
Net
sales by segment |
|
|
|
|
Retail Segment |
$
700,193 |
|
$
685,009 |
|
Wholesale Segment |
62,384 |
|
54,001 |
|
Total Company |
$ 762,577 |
|
$ 739,010 |
|
|
|
|
|
|
1 Other
consists of Vetri Family restaurants that were acquired during the
first quarter of fiscal 2017. |
For the three months ended April
30, 2016, the gross profit rate increased by 100 basis points
versus the prior year's comparable period. The increase in
gross profit rate was primarily driven by improvement in the Urban
Outfitters and Anthropologie Group brands maintained margins, with
Urban Outfitters delivering significantly lower markdowns compared
to prior year. The increase was partially offset by a lower gross
profit rate at the Free People brand which was primarily driven by
higher markdowns.
As of April 30, 2016, total
inventory decreased by $38 million, or 10%, on a year-over-year
basis. The decrease in total inventory is primarily related to the
decline in comparable Retail segment inventory, which decreased 10%
at cost.
For the three months ended April 30, 2016,
selling, general and administrative expenses, expressed as a
percentage of net sales, increased by 155 basis points when
compared to the prior year period. The deleverage is primarily due
to an increase in marketing expense to support our customer
acquisition and retention efforts, deleverage in direct store
controllable expenses related to negative store comparable sales,
and an increase in technology related expenses used to support our
omni-channel initiatives.
The Company's effective tax rate for the first
quarter of fiscal 2017 was 39.6% compared to 35.6% in the prior
year period. This increase in the tax rate was due to the
ratio of foreign taxable losses to global taxable profits in the
quarter.
On February 23, 2015, the Company's Board of
Directors authorized the repurchase of 20 million common shares
under a share repurchase program. Under this authorization, the
Company repurchased and subsequently retired 0.3 million common
shares for approximately $11 million under this authorization
during the first quarter of fiscal 2017. The Company repurchased
and subsequently retired a total of 12.7 million common shares for
approximately $382 million during fiscal 2016 under this
authorization.
On May 27, 2014, the Company's Board of
Directors authorized the repurchase of 10 million common shares
under a share repurchase program. During the first quarter of
fiscal 2016, the Company repurchased and subsequently retired 0.4
million shares for approximately $17 million under this
authorization. During fiscal 2016, the Company repurchased
and subsequently retired 2.3 million shares at a total cost of $83
million, which completed this authorization.
During the three months ended April 30, 2016, the
Company opened a total of 4 new stores including 3 Free People
stores and 1 Anthropologie Group store; and closed 2 stores
including: 1 Urban Outfitters store and 1 Anthropologie Group
store. During the three months ended April 30, 2016, the Company
acquired 6 Vetri Family restaurants.
Urban Outfitters, Inc. is a portfolio of global
consumer brands which offers a variety of lifestyle merchandise and
consumer products to highly defined customer niches through 239
Urban Outfitters stores in the United States, Canada, and Europe,
catalogs and websites; 218 Anthropologie Group stores in the United
States, Canada and Europe, catalogs and websites; 117 Free People
stores in the United States and Canada, catalogs and websites; Free
People wholesale, which sells its product to approximately 1,800
specialty stores and select department stores worldwide; and 6
Vetri family restaurants, as of April 30, 2016.
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/oxf8f8ra/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, |
|
2016 |
|
2015 |
|
|
|
|
Net
sales |
$ 762,577 |
|
$ 739,010 |
Cost of
sales |
500,686 |
|
492,589 |
Gross profit |
261,891 |
|
246,421 |
Selling,
general and administrative expenses |
211,408 |
|
193,367 |
Income from operations |
50,483 |
|
53,054 |
Other
expense, net |
(1,577) |
|
(2,121) |
Income before income taxes |
48,906 |
|
50,933 |
Income
tax expense |
19,344 |
|
18,157 |
Net income |
$ 29,562 |
|
$ 32,776 |
|
|
|
|
Net
income per common share: |
|
|
|
Basic |
$ 0.25 |
|
$ 0.25 |
Diluted |
$ 0.25 |
|
$ 0.25 |
|
|
|
|
Weighted
average common shares and common |
|
|
|
share equivalents outstanding: |
|
|
|
Basic |
117,304,736 |
|
131,202,740 |
Diluted |
117,587,009 |
|
132,836,144 |
|
|
|
|
|
|
|
|
AS A
PERCENT OF NET SALES |
|
|
|
Net
sales |
100.0% |
|
100.0% |
Cost of
sales |
65.7% |
|
66.7% |
Gross profit |
34.3% |
|
33.3% |
Selling,
general and administrative expenses |
27.7% |
|
26.1% |
Income from operations |
6.6% |
|
7.2% |
Other
expense, net |
(0.2%) |
|
(0.3%) |
Income before income taxes |
6.4% |
|
6.9% |
Income
tax expense |
2.5% |
|
2.5% |
Net income |
3.9% |
|
4.4% |
URBAN OUTFITTERS,
INC.
Condensed Consolidated Balance
Sheets
(in thousands, except share and per share
data)
(unaudited)
|
April 30,
2016 |
|
January 31,
2016 |
|
April 30,
2015 |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ 228,144 |
|
$ 265,276 |
|
$ 176,931 |
Marketable securities |
59,564 |
|
61,061 |
|
96,626 |
Accounts receivable, net of allowance for doubtful accounts |
|
|
|
|
|
of
$1,063, $664 and $767, respectively |
72,165 |
|
75,723 |
|
54,283 |
Inventory |
359,865 |
|
330,223 |
|
397,998 |
Prepaid expenses, deferred taxes and other current assets |
89,793 |
|
102,078 |
|
119,083 |
Total current assets |
809,531 |
|
834,361 |
|
844,921 |
|
|
|
|
|
|
Property
and equipment, net |
871,504 |
|
863,137 |
|
899,324 |
Marketable securities |
18,710 |
|
36,600 |
|
83,348 |
Deferred
income taxes and other assets |
115,149 |
|
99,203 |
|
89,763 |
Total Assets |
$ 1,814,894 |
|
$ 1,833,301 |
|
$ 1,917,356 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ 151,983 |
|
$ 118,035 |
|
$ 145,379 |
Accrued expenses, accrued compensation and other current
liabilities |
190,378 |
|
211,196 |
|
175,258 |
Total current liabilities |
342,361
|
|
329,231 |
|
320,637 |
|
|
|
|
|
|
Long-term
debt |
75,000 |
|
150,000 |
|
- |
Deferred
rent and other liabilities |
223,480 |
|
216,843 |
|
208,274 |
Total Liabilities |
640,841 |
|
696,074 |
|
528,911 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Preferred shares; $.0001 par value, 10,000,000 shares authorized,
none issued |
- |
|
- |
|
- |
Common shares; $.0001 par value, 200,000,000 shares authorized,
117,116,520 |
|
|
|
|
|
117,321,120 and 131,543,388 issued and outstanding,
respectively |
12 |
|
12 |
|
13 |
Additional paid-in-capital |
- |
|
- |
|
24,593 |
Retained earnings |
1,187,906 |
1,160,666 |
|
1,376,159 |
Accumulated other comprehensive loss |
(13,865) |
|
(23,451) |
|
(12,320) |
Total Shareholders' Equity |
1,174,053 |
|
1,137,227 |
|
1,388,445 |
Total Liabilities and Shareholders' Equity |
$ 1,814,894 |
|
$ 1,833,301 |
|
$ 1,917,356 |
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#2013743
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