URBN Reports Record Q4 Sales and Strong Earnings Growth
- Record net income of $47.8 million and earnings per diluted share of $0.50 for the three months ended January 31, 2024.
- Adjusted net income of $65.7 million and adjusted earnings per diluted share of $0.69 for the same period.
- Total Company net sales increased by 7.3% to a record $1.49 billion for the three months ended January 31, 2024.
- Total Retail segment net sales increased by 6.2% with comparable Retail segment net sales increasing by 4.9%.
- Wholesale segment net sales increased by 3.3%, driven by Free People wholesale sales.
- Nuuly segment net sales increased by $20.3 million, primarily due to a 56% increase in average active subscribers.
- Total Company net sales for the year ended January 31, 2024, increased by 7.5% to a record $5.15 billion.
- Positive customer response to early spring offerings drove record fourth quarter sales.
- Gross profit rate increased by 232 basis points for the three months ended January 31, 2024.
- Total inventory decreased by $37.3 million compared to the previous year.
- The Company's effective tax rate and adjusted effective tax rate for the three months and year ended January 31, 2024, showed variations.
- No common shares were repurchased during the year ended January 31, 2024.
- The Company opened 26 new retail locations and closed 20 retail locations during the same period.
- Urban Outfitters, Inc. operates various lifestyle-oriented brands across the US, Canada, and Europe.
- Nuuly is a monthly women's apparel subscription rental service offered by the Company.
- A conference call will be held to discuss fourth quarter results.
- The PR provides detailed financial data and performance metrics for Urban Outfitters, Inc. for the specified periods.
- None.
Insights
Urban Outfitters, Inc.'s recent financial results reflect a robust performance with record net sales and an uptick in gross profit margins. The growth in net income and earnings per share, both on a reported and adjusted basis, signifies a solid bottom-line expansion. The differentiation in performance among the brands, with Free People and Anthropologie outperforming Urban Outfitters, indicates a varied consumer response which could influence the company's strategic focus. The shift in sales channels, with digital growth outpacing traditional retail, underscores the ongoing retail industry transformation.
The increase in adjusted gross profit is notable, as it suggests improved operational efficiency, possibly due to lower inbound transportation costs. This is a key indicator of margin health and may be seen as a positive signal to investors. However, the deleverage in selling, general and administrative expenses, despite being attributed to investments in marketing and creative expenses, raises questions about cost management and its sustainability in the long term.
The repurchase program's status, with no shares repurchased during the year, could be interpreted as the company prioritizing other uses of capital, potentially for reinvestment in growth initiatives. The effective tax rate changes, particularly the decrease for the full year, might provide some fiscal relief and could be seen as a positive contributor to net income.
The reported increase in net sales for Urban Outfitters, Inc. is aligned with industry trends where retailers with strong digital channels continue to experience growth. The significant rise in comparable Retail segment net sales for Free People and Anthropologie suggests a successful alignment with consumer tastes and effective merchandising strategies. Conversely, the decline in Urban Outfitters' comparable Retail segment net sales could indicate brand-specific challenges or a shift in consumer preferences.
The expansion of the Nuuly segment, highlighted by a considerable increase in average active subscribers, points to the effectiveness of Urban Outfitters' diversification strategy into subscription-based models. This is an emerging trend in the retail sector that caters to changing consumer behaviors around ownership and sustainability.
Inventory control, particularly the reduction in Wholesale segment inventory, reflects a disciplined approach to supply chain management. This is critical in the retail industry to avoid markdowns and maintain profitability. The opening and closing of stores reflect a strategic optimization of the company's physical presence, which is a necessary adaptation in the current retail landscape where consumer shopping habits are evolving.
Urban Outfitters, Inc.'s performance can be dissected to reveal insights into consumer trends and market dynamics. The growth in digital sales across the company's brands is indicative of an ongoing consumer shift towards online shopping, a trend accelerated by the pandemic and solidifying as a permanent fixture in retail. This digital growth trajectory is crucial for the company's future revenue streams.
The contrasting performance between the company's brands suggests that Free People and Anthropologie are resonating well with their target demographics, likely due to their distinct brand identities and product offerings. In contrast, the decline in Urban Outfitters' sales may suggest a need for brand revitalization or adjustment in product mix to re-engage with its core customer base.
The emphasis on Nuuly's growth reflects a strategic bet on the rental subscription market, which aligns with the increasing consumer consciousness around sustainability and the sharing economy. This segment's performance will be an area to watch, as it could represent a significant growth driver for the company in a relatively untapped market within the apparel industry.
PHILADELPHIA, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands, today announced net income of
For the three months ended January 31, 2024, adjusted net income was
Total Company net sales for the three months ended January 31, 2024, increased
For the year ended January 31, 2024, total Company net sales increased
“We are pleased to report record fourth quarter sales driven by strength at the Anthropologie, Free People, FP Movement and Nuuly brands,” said Richard A. Hayne, Chief Executive Officer. “Positive customer response to our early spring offerings bodes well for continued sales growth in the first quarter,” finished Mr. Hayne.
Net sales by brand and segment for the three and twelve-month periods were as follows:
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales by brand | ||||||||||||||||
| Anthropologie(1) | $ | 679,524 | $ | 602,865 | $ | 2,233,070 | $ | 1,985,928 | ||||||||
| Urban Outfitters | 372,566 | 425,636 | 1,352,073 | 1,547,344 | ||||||||||||
| Free People(2) | 362,266 | 306,153 | 1,298,974 | 1,104,012 | ||||||||||||
| Nuuly | 63,080 | 42,733 | 235,859 | 129,637 | ||||||||||||
| Menus & Venues | 8,758 | 7,186 | 33,261 | 28,323 | ||||||||||||
| Total Company | $ | 1,486,194 | $ | 1,384,573 | $ | 5,153,237 | $ | 4,795,244 | ||||||||
| Net sales by segment | ||||||||||||||||
| Retail Segment | $ | 1,368,742 | $ | 1,289,201 | $ | 4,678,698 | $ | 4,415,358 | ||||||||
| Wholesale Segment | 54,372 | 52,639 | 238,680 | 250,249 | ||||||||||||
| Nuuly Segment | 63,080 | 42,733 | 235,859 | 129,637 | ||||||||||||
| Total Company | $ | 1,486,194 | $ | 1,384,573 | $ | 5,153,237 | $ | 4,795,244 | ||||||||
Adjusted net sales by brand and segment for the three and twelve-month periods were as follows:
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Adjusted net sales by brand | ||||||||||||||||
| Anthropologie(1) | $ | 679,524 | $ | 602,865 | $ | 2,233,070 | $ | 1,985,928 | ||||||||
| Urban Outfitters | 372,566 | 425,636 | 1,352,073 | 1,547,344 | ||||||||||||
| Free People(2) | 362,266 | 306,153 | 1,298,974 | 1,104,012 | ||||||||||||
| Nuuly | 72,152 | 42,733 | 244,931 | 129,637 | ||||||||||||
| Menus & Venues | 8,758 | 7,186 | 33,261 | 28,323 | ||||||||||||
| Total Company | $ | 1,495,266 | $ | 1,384,573 | $ | 5,162,309 | $ | 4,795,244 | ||||||||
| Adjusted net sales by segment | ||||||||||||||||
| Retail Segment | $ | 1,368,742 | $ | 1,289,201 | $ | 4,678,698 | $ | 4,415,358 | ||||||||
| Wholesale Segment | 54,372 | 52,639 | 238,680 | 250,249 | ||||||||||||
| Nuuly Segment | 72,152 | 42,733 | 244,931 | 129,637 | ||||||||||||
| Total Company | $ | 1,495,266 | $ | 1,384,573 | $ | 5,162,309 | $ | 4,795,244 | ||||||||
| (1) Anthropologie includes the Anthropologie and Terrain brands. (2) Free People includes the Free People and FP Movement brands. | ||||||||||||||||
For the three months ended January 31, 2024, the gross profit rate increased by 232 basis points compared to the three months ended January 31, 2023, and gross profit dollars increased
For the year ended January 31, 2024, the gross profit rate increased by 353 basis points compared to the year ended January 31, 2023, and gross profit dollars increased
As of January 31, 2024, total inventory decreased by
For the three months ended January 31, 2024, selling, general and administrative expenses increased by
The Company’s effective tax rate for the three months ended January 31, 2024 was
Net income for the three months ended January 31, 2024 was
On August 22, 2017, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program; all shares were repurchased and the authorization was completed by the end of June 2022. On June 4, 2019, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a new share repurchase program. During the year ended January 31, 2024, the Company did not repurchase any common shares. During the year ended January 31, 2023, the Company repurchased and subsequently retired 4.7 million common shares for approximately
During the year ended January 31, 2024, the Company opened a total of 26 new retail locations including: 11 Free People stores (including 7 FP Movement stores), 7 Urban Outfitters stores, 7 Anthropologie stores and 1 Menus & Venues restaurant; and closed 20 retail locations including: 8 Urban Outfitters stores, 8 Anthropologie brand stores, 1 Free People brand store and 3 Menus & Venues restaurants. During the year ended January 31, 2024, 1 Urban Outfitters franchisee-owned store was opened.
Urban Outfitters, Inc. offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 262 Urban Outfitters stores in the United States, Canada and Europe and websites; 237 Anthropologie stores in the United States, Canada and Europe, catalogs and websites; 198 Free People stores (including 38 FP Movement stores) in the United States, Canada and Europe, catalogs and websites, 9 Menus & Venues restaurants, 7 Urban Outfitters franchisee-owned stores and 2 Anthropologie franchisee-owned stores as of January 31, 2024. Free People, FP Movement and Urban Outfitters wholesale sell their products through department and specialty stores worldwide, digital businesses and the Company’s Retail segment. Nuuly is a monthly women's apparel subscription rental service which offers a wide selection of rental product from the Company's own brands, third-party brands and one-of-a-kind vintage pieces.
A conference call will be held today to discuss fourth quarter results and will be webcast at 5:15 pm. ET at: https://edge.media-server.com/mmc/p/j2c8tt7b/.
As used in this document, unless otherwise defined, "Anthropologie" refers to the Company's Anthropologie and Terrain brands and "Free People" refers to the Company's Free People and FP Movement brands.
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 contain 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: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, 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, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, including geopolitical instability and impacts of the conflict in the Middle East and the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises (such as the coronavirus (COVID-19)), labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs, border adjustment taxes or increases in duties or quotas), the closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identified in our 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 | ||||||||||||||||
| (amounts in thousands, except share and per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 1,486,194 | $ | 1,384,573 | $ | 5,153,237 | $ | 4,795,244 | ||||||||
| Cost of sales (excluding store impairment and lease abandonment charges) | 1,041,526 | 1,006,794 | 3,425,958 | 3,361,611 | ||||||||||||
| Store impairment and lease abandonment charges | 10,483 | 5,459 | 11,875 | 6,417 | ||||||||||||
| Gross profit | 434,185 | 372,320 | 1,715,404 | 1,427,216 | ||||||||||||
| Selling, general and administrative expenses | 370,445 | 335,070 | 1,339,205 | 1,200,593 | ||||||||||||
| Asset impairment | 6,404 | — | 6,404 | — | ||||||||||||
| Income from operations | 57,336 | 37,250 | 369,795 | 226,623 | ||||||||||||
| Other income (loss), net | 6,689 | 3,926 | 11,812 | (5,344 | ) | |||||||||||
| Income before income taxes | 64,025 | 41,176 | 381,607 | 221,279 | ||||||||||||
| Income tax expense | 16,274 | 9,714 | 93,933 | 61,580 | ||||||||||||
| Net income | $ | 47,751 | $ | 31,462 | $ | 287,674 | $ | 159,699 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.51 | $ | 0.34 | $ | 3.10 | $ | 1.71 | ||||||||
| Diluted | $ | 0.50 | $ | 0.34 | $ | 3.05 | $ | 1.70 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 92,786,380 | 92,178,462 | 92,697,751 | 93,199,874 | ||||||||||||
| Diluted | 94,805,976 | 93,619,121 | 94,327,785 | 94,144,062 | ||||||||||||
| AS A PERCENTAGE OF NET SALES | ||||||||||||||||
| Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Cost of sales (excluding store impairment and lease abandonment charges) | 70.1 | % | 72.7 | % | 66.5 | % | 70.1 | % | ||||||||
| Store impairment and lease abandonment charges | 0.7 | % | 0.4 | % | 0.2 | % | 0.1 | % | ||||||||
| Gross profit | 29.2 | % | 26.9 | % | 33.3 | % | 29.8 | % | ||||||||
| Selling, general and administrative expenses | 24.8 | % | 24.2 | % | 26.0 | % | 25.1 | % | ||||||||
| Asset impairment | 0.5 | % | — | 0.1 | % | — | ||||||||||
| Income from operations | 3.9 | % | 2.7 | % | 7.2 | % | 4.7 | % | ||||||||
| Other income (loss), net | 0.4 | % | 0.3 | % | 0.2 | % | (0.1 | %) | ||||||||
| Income before income taxes | 4.3 | % | 3.0 | % | 7.4 | % | 4.6 | % | ||||||||
| Income tax expense | 1.1 | % | 0.7 | % | 1.8 | % | 1.3 | % | ||||||||
| Net income | 3.2 | % | 2.3 | % | 5.6 | % | 3.3 | % | ||||||||
| URBAN OUTFITTERS, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (amounts in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
| January 31, | January 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 178,321 | $ | 201,260 | ||||
| Marketable securities | 286,744 | 181,378 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of | 67,008 | 70,339 | ||||||
| Inventory | 550,242 | 587,510 | ||||||
| Prepaid expenses and other current assets | 200,188 | 197,232 | ||||||
| Total current assets | 1,282,503 | 1,237,719 | ||||||
| Property and equipment, net | 1,286,541 | 1,187,735 | ||||||
| Operating lease right-of-use assets | 920,396 | 959,436 | ||||||
| Marketable securities | 314,152 | 102,844 | ||||||
| Deferred income taxes and other assets | 307,617 | 195,178 | ||||||
| Total Assets | $ | 4,111,209 | $ | 3,682,912 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 253,342 | $ | 257,620 | ||||
| Current portion of operating lease liabilities | 226,645 | 232,672 | ||||||
| Accrued expenses, accrued compensation and other current liabilities | 514,218 | 400,082 | ||||||
| Total current liabilities | 994,205 | 890,374 | ||||||
| Non-current portion of operating lease liabilities | 851,853 | 884,696 | ||||||
| Deferred rent and other liabilities | 152,611 | 115,159 | ||||||
| Total Liabilities | 1,998,669 | 1,890,229 | ||||||
| Shareholders’ equity: | ||||||||
| Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued | — | — | ||||||
| Common shares; $.0001 par value, 200,000,000 shares authorized, 92,787,522, and 92,180,709 shares issued and outstanding, respectively | 9 | 9 | ||||||
| Additional paid-in-capital | 37,943 | 15,248 | ||||||
| Retained earnings | 2,113,735 | 1,826,061 | ||||||
| Accumulated other comprehensive loss | (39,147 | ) | (48,635 | ) | ||||
| Total Shareholders’ Equity | 2,112,540 | 1,792,683 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 4,111,209 | $ | 3,682,912 | ||||
| URBAN OUTFITTERS, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (amounts in thousands) | ||||||||
| (unaudited) | ||||||||
| Twelve Months Ended | ||||||||
| January 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 287,674 | $ | 159,699 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 102,487 | 102,339 | ||||||
| Non-cash lease expense | 202,265 | 193,863 | ||||||
| Provision (benefit) for deferred income taxes | 24,711 | (2,577 | ) | |||||
| Share-based compensation expense | 30,508 | 29,449 | ||||||
| Amortization of tax credit investment | 15,906 | — | ||||||
| Store impairment and lease abandonment charges | 11,875 | 6,417 | ||||||
| Asset impairment | 6,404 | — | ||||||
| Loss on disposition of property and equipment, net | 309 | 982 | ||||||
| Changes in assets and liabilities: | ||||||||
| Receivables | 3,708 | (7,103 | ) | |||||
| Inventory | 38,785 | (22,286 | ) | |||||
| Prepaid expenses and other assets | (53,532 | ) | (31,257 | ) | ||||
| Payables, accrued expenses and other liabilities | 74,185 | (49,593 | ) | |||||
| Operating lease liabilities | (235,874 | ) | (237,204 | ) | ||||
| Net cash provided by operating activities | 509,411 | 142,729 | ||||||
| Cash flows from investing activities: | ||||||||
| Cash paid for property and equipment | (199,625 | ) | (199,513 | ) | ||||
| Cash paid for marketable securities | (649,389 | ) | (109,148 | ) | ||||
| Sales and maturities of marketable securities | 347,366 | 276,650 | ||||||
| Initial cash payment for tax credit investment | (20,000 | ) | — | |||||
| Net cash used in investing activities | (521,648 | ) | (32,011 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from the exercise of stock options | 594 | 376 | ||||||
| Share repurchases related to share repurchase program | — | (112,016 | ) | |||||
| Share repurchases related to taxes for share-based awards | (8,407 | ) | (6,760 | ) | ||||
| Tax credit investment liability payments | (4,319 | ) | — | |||||
| Net cash used in financing activities | (12,132 | ) | (118,400 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1,430 | 2,367 | ||||||
| Decrease in cash and cash equivalents | (22,939 | ) | (5,315 | ) | ||||
| Cash and cash equivalents at beginning of period | 201,260 | 206,575 | ||||||
| Cash and cash equivalents at end of period | $ | 178,321 | $ | 201,260 | ||||
Important Information Regarding Non-GAAP Financial Measures
In addition to evaluating the financial condition and results of our operations in accordance with U.S. generally accepted accounting principles (“GAAP”), from time to time our management evaluates and analyzes results and any impact on the Company of certain events outside of normal, or “core,” business and operations, by considering adjusted financial measures not prepared in accordance with GAAP. Examples of items that we consider non-core include store impairment and lease abandonment charges, an asset impairment charge and a change in revenue recognition method for Nuuly. In order to improve the transparency of our disclosures, provide a meaningful presentation of results from our core business operations and improve period-over-period comparability, we have included certain adjusted financial measures for fiscal 2024 and 2023 that exclude the impact of these non-core business items.
We believe these adjusted financial measures are important indicators of our recurring results of operations because they exclude items that may not be indicative of, or are unrelated to, our underlying results of operations and provide a useful baseline for analyzing trends in our underlying business. Management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance. These adjusted financial measures are not consistent with GAAP and may not be calculated the same as similarly titled measures used by other companies.
| URBAN OUTFITTERS, INC. | |||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Reconciliation of Total Company Adjusted Net Sales: | |||||||||||||||
| Three Months Ended | |||||||||||||||
| January 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| $'s | % Change | $'s | |||||||||||||
| Net sales (GAAP) | $ | 1,486,194 | 7.3 | % | $ | 1,384,573 | |||||||||
| Adjustments: | |||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 9,072 | — | |||||||||||||
| Adjusted net sales (Non-GAAP) | $ | 1,495,266 | 8.0 | % | $ | 1,384,573 | |||||||||
| Twelve Months Ended | |||||||||||||||
| January 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| $'s | % Change | $'s | |||||||||||||
| Net sales (GAAP) | $ | 5,153,237 | 7.5 | % | $ | 4,795,244 | |||||||||
| Adjustments: | |||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 9,072 | — | |||||||||||||
| Adjusted net sales (Non-GAAP) | $ | 5,162,309 | 7.7 | % | $ | 4,795,244 | |||||||||
| Reconciliation of Nuuly Segment Adjusted Net Sales: | |||||||||||||||
| Three Months Ended | |||||||||||||||
| January 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| $'s | $ Change | $'s | |||||||||||||
| Net sales (GAAP) | $ | 63,080 | $ | 20,347 | $ | 42,733 | |||||||||
| Adjustments: | |||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 9,072 | — | |||||||||||||
| Adjusted net sales (Non-GAAP) | $ | 72,152 | $ | 29,419 | $ | 42,733 | |||||||||
| Twelve Months Ended | |||||||||||||||
| January 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| $'s | $ Change | $'s | |||||||||||||
| Net sales (GAAP) | $ | 235,859 | $ | 106,222 | $ | 129,637 | |||||||||
| Adjustments: | |||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 9,072 | — | |||||||||||||
| Adjusted net sales (Non-GAAP) | $ | 244,931 | $ | 115,294 | $ | 129,637 | |||||||||
| URBAN OUTFITTERS, INC. | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Reconciliation of Total Company Adjusted Gross Profit: | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| January 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $'s | % of Net Sales | % of Adj. Net Sales | $'s | % of Net Sales | |||||||||||||
| Gross profit (GAAP) | $ | 434,185 | 29.2 | % | $ | 372,320 | 26.9 | % | |||||||||
| Adjustments: | |||||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | |||||||||||||||
| Store impairment and lease abandonment charges (b) | 10,483 | 5,459 | |||||||||||||||
| Adjusted gross profit (Non-GAAP) | $ | 451,765 | 30.2 | % | $ | 377,779 | 27.3 | % | |||||||||
| Twelve Months Ended | |||||||||||||||||
| January 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $'s | % of Net Sales | % of Adj. Net Sales | $'s | % of Net Sales | |||||||||||||
| Gross profit (GAAP) | $ | 1,715,404 | 33.3 | % | $ | 1,427,216 | 29.8 | % | |||||||||
| Adjustments: | |||||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | |||||||||||||||
| Store impairment and lease abandonment charges (b) | 11,875 | 6,417 | |||||||||||||||
| Adjusted gross profit (Non-GAAP) | $ | 1,734,376 | 33.6 | % | $ | 1,433,633 | 29.9 | % | |||||||||
| URBAN OUTFITTERS, INC. | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Reconciliation of Total Company Adjusted Income from Operations: | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| January 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $'s | % of Net Sales | % of Adj. Net Sales | $'s | % of Net Sales | |||||||||||||
| Income from operations (GAAP) | $ | 57,336 | 3.9 | % | $ | 37,250 | 2.7 | % | |||||||||
| Adjustments: | |||||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | |||||||||||||||
| Store impairment and lease abandonment charges (b) | 10,483 | 5,459 | |||||||||||||||
| Asset impairment charge (c) | 6,404 | — | |||||||||||||||
| Adjusted income from operations (Non-GAAP) | $ | 81,320 | 5.4 | % | $ | 42,709 | 3.1 | % | |||||||||
| Twelve Months Ended | |||||||||||||||||
| January 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $'s | % of Net Sales | % of Adj. Net Sales | $'s | % of Net Sales | |||||||||||||
| Income from operations (GAAP) | $ | 369,795 | 7.2 | % | $ | 226,623 | 4.7 | % | |||||||||
| Adjustments: | |||||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | |||||||||||||||
| Store impairment and lease abandonment charges (b) | 11,875 | 6,417 | |||||||||||||||
| Asset impairment charge (c) | 6,404 | — | |||||||||||||||
| Adjusted income from operations (Non-GAAP) | $ | 395,171 | 7.7 | % | $ | 233,040 | 4.9 | % | |||||||||
| URBAN OUTFITTERS, INC. | ||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||
| (amounts in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Reconciliation of Total Company Adjusted Income Tax Expense and Adjusted Effective Tax Rate: | ||||||||
| Three Months Ended | ||||||||
| January 31, | ||||||||
| 2024 | 2023 | |||||||
| $'s | $'s | |||||||
| Income before income taxes (GAAP) | $ | 64,025 | $ | 41,176 | ||||
| Adjustments: | ||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | ||||||
| Store impairment and lease abandonment charges (b) | 10,483 | 5,459 | ||||||
| Asset impairment charge (c) | 6,404 | — | ||||||
| Adjusted income before income taxes (Non-GAAP) | $ | 88,009 | $ | 46,635 | ||||
| Income tax expense (GAAP) | $ | 16,274 | $ | 9,714 | ||||
| Adjustments: | ||||||||
| Provision for income taxes on adjustments (d) | 6,044 | 1,085 | ||||||
| Adjusted income tax expense (Non-GAAP) | $ | 22,318 | $ | 10,799 | ||||
| Effective income tax rate (GAAP) | 25.4 | % | 23.6 | % | ||||
| Adjustments | (0.0 | %) | (0.4 | %) | ||||
| Adjusted effective income tax rate (Non-GAAP) | 25.4 | % | 23.2 | % | ||||
| Twelve Months Ended | ||||||||
| January 31, | ||||||||
| 2024 | 2023 | |||||||
| $'s | $'s | |||||||
| Income before income taxes (GAAP) | $ | 381,607 | $ | 221,279 | ||||
| Adjustments: | ||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | ||||||
| Store impairment and lease abandonment charges (b) | 11,875 | 6,417 | ||||||
| Asset impairment charge (c) | 6,404 | — | ||||||
| Adjusted income before income taxes (Non-GAAP) | $ | 406,983 | $ | 227,696 | ||||
| Income tax expense (GAAP) | $ | 93,933 | $ | 61,580 | ||||
| Adjustments: | ||||||||
| Provision for income taxes on adjustments (d) | 6,396 | 1,275 | ||||||
| Adjusted income tax expense (Non-GAAP) | $ | 100,329 | $ | 62,855 | ||||
| Effective income tax rate (GAAP) | 24.6 | % | 27.8 | % | ||||
| Adjustments | 0.1 | % | (0.2 | %) | ||||
| Adjusted effective income tax rate (Non-GAAP) | 24.7 | % | 27.6 | % | ||||
| URBAN OUTFITTERS, INC. | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Reconciliation of Total Company Adjusted Net Income and Adjusted Diluted EPS: | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| January 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $'s | % of Net Sales | % of Adj. Net Sales | $'s | % of Net Sales | |||||||||||||
| Net income (GAAP) | $ | 47,751 | 3.2 | % | $ | 31,462 | 2.3 | % | |||||||||
| Adjustments: | |||||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | |||||||||||||||
| Store impairment and lease abandonment charges (b) | 10,483 | 5,459 | |||||||||||||||
| Asset impairment charge (c) | 6,404 | — | |||||||||||||||
| Provision for income taxes on adjustments (d) | (6,044 | ) | (1,085 | ) | |||||||||||||
| Adjusted net income (Non-GAAP) | $ | 65,691 | 4.4 | % | $ | 35,836 | 2.6 | % | |||||||||
| Diluted EPS (GAAP) | $ | 0.50 | $ | 0.34 | |||||||||||||
| Adjustments, net of tax | 0.19 | 0.04 | |||||||||||||||
| Adjusted diluted EPS (Non-GAAP) | $ | 0.69 | $ | 0.38 | |||||||||||||
| Twelve Months Ended | |||||||||||||||||
| January 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $'s | % of Net Sales | % of Adj. Net Sales | $'s | % of Net Sales | |||||||||||||
| Net income (GAAP) | $ | 287,674 | 5.6 | % | $ | 159,699 | 3.3 | % | |||||||||
| Adjustments: | |||||||||||||||||
| Change in revenue recognition method for Nuuly (a) | 7,097 | — | |||||||||||||||
| Store impairment and lease abandonment charges (b) | 11,875 | 6,417 | |||||||||||||||
| Asset impairment charge (c) | 6,404 | — | |||||||||||||||
| Provision for income taxes on adjustments (d) | (6,396 | ) | (1,275 | ) | |||||||||||||
| Adjusted net income (Non-GAAP) | $ | 306,654 | 5.9 | % | $ | 164,841 | 3.4 | % | |||||||||
| Diluted EPS (GAAP) | $ | 3.05 | $ | 1.70 | |||||||||||||
| Adjustments, net of tax | 0.20 | 0.05 | |||||||||||||||
| Adjusted diluted EPS (Non-GAAP) | $ | 3.25 | $ | 1.75 | |||||||||||||
| (a) During the three months ended January 31, 2024, the Company changed the revenue recognition method for Nuuly Rent from recognizing the monthly subscription fee revenue in the period the customer is billed to recognizing over the monthly period over which the customer’s subscription fee pertains. The Company also changed the period over which it amortizes rental product to align with the change in revenue recognition method. The impact was a reduction in “Net sales” of | |||||||||||||||||
| (b) Store impairment charges relate to 11 and 15 retail locations during the three and twelve months ended January 31, 2024, respectively, and 15 and 19 retail locations during the three and twelve months ended January 31, 2023, respectively. During the three months ended January 31, 2024, the Company also recorded lease abandonment charges for two store locations which it has committed to cease operations but the lease has not been terminated. | |||||||||||||||||
| (c) The asset impairment charge relates to the write-off of “Property and equipment, net” of the Nuuly Thrift marketplace which the Company has decided to wind down in fiscal 2025. | |||||||||||||||||
| (d) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments. | |||||||||||||||||
| Contact: | Oona McCullough |
| Executive Director of Investor Relations | |
| (215) 454-4806 |
FAQ
What was Urban Outfitters, Inc.'s net income for the three months ended January 31, 2024?
Which brands drove positive sales growth for Urban Outfitters, Inc.?
What was the total Company net sales for the three months ended January 31, 2024?
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What led to the increase in Nuuly segment net sales?
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Did Urban Outfitters, Inc. repurchase any common shares during the year ended January 31, 2024?
