Urban Outfitters : Urban Outfitters Reports a 104% Jump in Q4 Operating Profit

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
                                  
                                  

                                      

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Source: Urban Outfitters via Thomson Reuters ONE
HUG#1684529
 
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