PHILADELPHIA, PA March 12, 2012 - 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 $39.3 million and $185.3 million for the fourth
quarter and the year ended January 31, 2012, respectively.
Earnings per diluted share were $0.27 for the quarter and
$1.19 for the year.
For the fourth quarter of fiscal 2012, total company net
sales increased 9% over the same quarter last year to $731
million. Comparable retail segment net sales, which include
the Direct-to-Consumer channels, increased 2% for the
quarter, while comparable store net sales decreased 1% for
the quarter. Comparable retail segment net sales at Urban
Outfitters, Free People and Anthropologie increased 3%, 9%
and 1%, respectively. Direct-to-Consumer comparable net sales
increased 14% and wholesale segment net sales rose 3% for the
quarter.
For the year ended January 31, 2012, total Company net sales
increased to $2.5 billion, or 9%, over the prior year.
Comparable retail segment net sales were flat while
comparable store net sales decreased 4%. Direct-to-Consumer
comparable net sales rose 14% for the year and wholesale
segment net sales increased 11%.
"I am pleased that we managed our inventories to
appropriate levels at year end even though our margins during
the quarter suffered as a result," said Chief Executive
Officer, Richard Hayne. "Our rate of full-priced selling
has improved from fourth quarter levels as we seek to
re-establish our historic full-price selling
penetration."
Net sales by brand and channel for the three and twelve
months were as follows:
Three Months Ended
Twelve Months Ended
January 31
January 31
Net sales by brand
2012
2011
2012
2011
Urban Outfitters
$ 356,769
$ 321,772
$ 1,155,293
$ 1,041,502
Anthropologie
299,198
283,418
1,044,525
1,011,999
Free People
69,864
58,941
250,412
202,493
Other
4,817
4,259
23,571
18,108
Total Company
$ 730,648
$ 668,390
$ 2,473,801
$ 2,274,102
Net sales by channel
Retail Stores
$ 532,043
$ 492,381
$ 1,835,831
$ 1,720,002
Direct-to-Consumer
166,935
145,282
504,963
433,790
Retail Segment
698,978
637,663
2,340,794
2,153,792
Wholesale Segment
31,670
30,727
133,007
120,310
Total Company
$ 730,648
$ 668,390
$ 2,473,801
$ 2,274,102
For the fourth quarter ended January 31, 2012, gross
profit margin percentage declined by 955 basis points versus
the prior year's comparable period. This decline was
primarily due to increased merchandise markdowns to clear
slow-moving women's apparel inventory at both
Anthropologie and Urban Outfitters, as well as occupancy
deleverage caused by negative comparable store net sales. For
the year ended January 31, 2012, gross profit margin declined
by 640 basis points versus the prior year. This decline was
principally due to increased merchandise markdowns to clear
slow-moving inventory, primarily associated with women's
apparel inventory at Anthropologie and Urban Outfitters, as
well as deleveraging of store occupancy expense as a result
of negative comparable store sales.
As of January 31, 2012, total inventories grew by $21 million
or 9%, on a year-over-year basis, driven primarily by the
acquisition of inventory to stock new stores, our
Direct-to-Consumer channel growth and the launch of our BHLDN
brand. Total comparable retail segment inventories at cost
(which includes our Direct-to-Consumer channel) increased by
2% while total comparable store inventory at cost decreased
by 3%.
For the quarter ended January 31,
2012, total selling, general and administrative expenses,
expressed as a percentage of net sales, decreased to 21.3%,
or 37 basis points, versus the prior year comparable period.
This decrease was primarily due to a one-time, non-recurring
$6 million net benefit primarily related to equity
compensation expense reversals. This benefit was
partially offset by the deleveraging of direct store
controllable expenses driven by the negative comparable store
net sales. For the year ended January 31, 2012, selling,
general and administration expenses, expressed as a
percentage of net sales, increased to 23.3%, or 31 basis
points, versus the prior comparable period. This increase was
primarily due to higher e-commerce and related marketing
investments, as well as, the deleveraging of direct store
controllable expenses driven by negative comparable store net
sales. The net benefit associated with equity compensation
reversals and lower incentive compensation costs were partial
offsets.
The Company's annual
effective tax rate for fiscal 2012 increased to 35.9% as
compared to 34.6% for fiscal 2011. The fiscal 2011 effective
tax rate was favorably affected by a one-time federal
rehabilitation credit.
During fiscal 2012, the Company repurchased and retired 20.5
million common shares for approximately $538 million under a
Board authorized share repurchase program. These repurchases
completed all of the Company's repurchase authorizations
under the program.
During the year ended January 31, 2012, the Company opened a
total of 57 new stores including: 21 new Urban Outfitters
stores, 15 new Anthropologie stores, 20 new Free People
stores and 1 BHLDN store.
Urban Outfitters, Inc. is an innovative specialty retail
company which offers a variety of lifestyle merchandise to
highly defined customer niches through 197 Urban Outfitters
stores in the United States, Canada and Europe, catalogs and
websites; 168 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; 62 Free People
stores, catalogs and websites, 1 Terrain garden center and
website and 1 BHLDN store and website as of January 31, 2012.
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," "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, availability of suitable retail space
for expansion, timing of store openings, 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 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 EndedYear Ended
January 31,January 31,
2012
2011
2012
2011
Net sales
$ 730,648
$ 668,390
$ 2,473,801
$ 2,274,102
Cost of sales, including certain buying,
distribution and occupancy costs
510,668
403,330
1,613,265
1,337,482
Gross profit
219,980
265,060
860,536
936,620
Selling, general and administrative expenses
155,448
144,737
575,811
522,417
Income from
operations
64,532
120,323
284,725
414,203
Other (expense) income, net
(212)
1,090
4,106
3,005
Income before income
taxes
64,320
121,413
288,831
417,208
Income tax expense
25,065
46,175
103,580
144,250
Net income
$ 39,255
$ 75,238
$ 185,251
$ 272,958
Net income per common share:
Basic
$ 0.27
$ 0.46
$ 1.20
$ 1.64
Diluted
$ 0.27
$ 0.45
$ 1.19
$ 1.60
Weighted average common shares and common
share equivalents outstanding:
Basic
144,268,135
164,188,852
154,025,589
166,896,322
Diluted
145,617,909
167,677,305
156,191,289
170,333,550
AS A PERCENT OF NET SALES
Net sales
100.0%
100.0%
100.0%
100.0%
Cost of sales, including certain buying,
distribution and occupancy costs
69.9%
60.3%
65.2%
58.8%
Gross profit
30.1%
39.7%
34.8%
41.2%
Selling, general and administrative expenses
21.3%
21.7%
23.3%
23.0%
Income from
operations
8.8%
18.0%
11.5%
18.2%
Other income, net
0.0%
0.2%
0.2%
0.1%
Income before income
taxes
8.8%
18.2%
11.7%
18.3%
Income tax expense
3.4%
6.9%
4.2%
6.3%
Net income
5.4%
11.3%
7.5%
12.0%
URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)
January 31,
2012
January 31,
2011
ASSETS
Current assets:
Cash and cash equivalents
$ 145,273
$ 340,257
Marketable securities
89,854
116,420
Accounts receivable, net of allowance for
doubtful accounts
of $1,614 and $1,015,
respectively
36,673
36,502
Inventories
250,073
229,561
Prepaid expenses, deferred taxes and other
current assets
75,119
81,237
Total current
assets
596,992
803,977
Property and equipment, net
684,979
586,346
Marketable securities
126,913
351,988
Deferred income taxes and other assets
74,824
52,010
Total
Assets
$ 1,483,708
$ 1,794,321
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 95,754
$ 82,904
Accrued expenses, accrued compensation and
other current liabilities
137,712
128,120
Total current
liabilities
233,466
211,024
Deferred rent and other liabilities
183,974
171,749
Total
Liabilities
417,440
382,773
Shareholders' equity:
Preferred shares; $.0001 par value,
10,000,000 shares authorized, none issued
-
-
Common shares; $.0001 par value,
200,000,000 shares authorized,
144,633,007 and 164,413,427
issued and outstanding respectively
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