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URBAN OUTFITTERS, INC. Fourth Quarter and Annual Results Philadelphia, PA - March 12, 2012
For Immediate Release

Contact:   Oona McCullough

Director of Investor Relations

(215) 454-4806

Urban Outfitters Reports 4th Quarter Operating Results

        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.

Management's fourth quarter commentary is located on our website at http://www.urbanoutfittersinc.com/.   A conference call will be held today to discuss fourth quarter and year end results and will be web cast at 5:00 pm. EDT at: http://www.media-server.com/m/acs/799094be137e88a2fd206eae19da58b6

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 Ended                           Year 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 15 17
   Additional paid-in-capital   - 27,603
   Retained earnings   1,077,765 1,394,190
   Accumulated other comprehensive loss   (11,512)  (10,262)
          Total Shareholders' Equity        1,066,268   1,411,548
          Total Liabilities and Shareholders' Equity                $1,483,708 $1,794,321

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