Urban Outfitters : Urban Outfitters Reports a 104% Jump in Q4 Operating Profit 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: http://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, 2013 2012 2013 2012 $ $ Net sales $ 856,832 730,648 $ 2,794,925 2,473,801 Cost of sales, including certain buying, distribution and 510,668 1,613,265 occupancy costs 543,136 1,763,394 Gross 219,980 860,536 profit 313,696 1,031,531 Selling, general and 155,448 575,811 administrative expenses 181,774 657,246 Income 64,532 284,725 from operations 131,922 374,285 Other income, net 716 (212) 1,287 4,106 Income 64,320 288,831 before income taxes 132,638 375,572 Income tax expense 50,090 25,065 138,258 103,580 $ $ $ $ Net income 82,548 39,255 237,314 185,251 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 and 69.9% 65.2% occupancy costs 63.4% 63.1% Gross 30.1% 34.8% profit 36.6% 36.9% Selling, general and 21.3% 23.3% administrative expenses 21.2% 23.5% Income 8.8% 11.5% from operations 15.4% 13.4% Other income, net 0.1% 0.0% 0.0% 0.2% Income 8.8% 11.7% before income taxes 15.5% 13.4% Income tax expense 5.9% 3.4% 4.9% 4.2% Net income 9.6% 5.4% 8.5% 7.5% 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 and 155,035 137,712 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 Shareholders' $ 1,799,904 $ 1,483,708 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
Urban Outfitters : Urban Outfitters Reports a 104% Jump in Q4 Operating Profit
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