PHILADELPHIA, May 14, 2009 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (Nasdaq:URBN), a leading lifestyle specialty retail company operating under the Anthropologie, Free People, Terrain and Urban Outfitters brands today announced income from operations of $46 million or net income of $0.18 per diluted share for the three months ended April 30, 2009.
As stated in the Company's previous sales release on May 7, 2009, total sales for the first quarter reached $385 million, a 2% decrease from the prior year's first quarter. Comparable retail segment sales, which include our Direct-to-consumer channels, decreased 7% for the quarter. Comparable store sales at Urban Outfitters, Anthropologie and Free People decreased 6%, 13% and 23%, respectively, for a combined decrease of 9.6%. Direct-to-consumer sales increased 4% and Wholesale segment sales were flat for the quarter.
"Given the challenging economic environment, we were pleased to produce 12% operating profits," said Glen T. Senk, Chief Executive Officer. "Based on our read of the customer, I believe our business is well positioned to show improvement over the next several quarters," finished Mr. Senk.
Net sales for the three month periods were as follows:
Three months ended
April 30,
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2009 2008
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(in thousands)
Urban Outfitters stores $152,832 $159,790
Anthropologie stores 138,343 145,596
Free People stores 7,313 5,859
Terrain 1,303 617
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Net store sales 299,791 311,862
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Direct-to-consumer 60,810 58,248
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Retail segment net sales 360,601 370,110
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Wholesale Segment Sales 24,195 24,182
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Total net sales $384,796 $394,292
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For the three months ended April 30, 2009, gross profit margins decreased by 300 basis points versus the comparable period last year. This decrease is primarily due to a higher rate of store occupancy expense driven by the decrease in comparable store sales, and merchandise markdowns to clear seasonal merchandise.
As of April 30, 2009, inventories decreased by $1.4 million, or 1% on a year-over-year basis as comparable store inventory declines more than offset additions to inventories in new stores. Total comparable store inventories decreased by 7%.
During the first quarter, selling, general and administrative expenses, expressed as a percentage of net sales, increased by 98 basis points versus the comparable period last year. This increase was primarily due to de-leveraging of fixed direct store costs.
Earnings per share decreased by 28% to $0.18 per diluted share for the three months ended April 30, 2009. The Company's tax rate rose to 36.1%. Management expects the tax rate to remain fairly consistent for the balance of the fiscal year.
During the three months ended April 30, 2009 the Company opened a total of five new stores including one new Urban Outfitters store, two new Anthropologie stores and two new Free People stores. The Company expects to open approximately 42 new stores during the current fiscal year.
Urban Outfitters, Inc. is an innovative specialty retail company which offers a variety of lifestyle merchandise to highly defined customer niches through 143 Urban Outfitters stores in the United States, Canada, and Europe, a catalog and two web sites; 123 Anthropologie stores, a catalog, web site and Leifsdottir, Anthropologie's wholesale concept; Free People, which sells to approximately 1,700 specialty stores and select department stores and operates 32 Free People stores, a catalog and web site; and one Terrain garden center as of April 30, 2009.
A conference call will be held today to discuss first quarter results and will be web cast at 11:00 a.m. EDT on http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-irhome
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. 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, including 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 and other risks identified in 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.
URBAN OUTFITTERS, INC.
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
Three Months Ended
April 30,
------------------------
2009 2008
---- ----
Net sales $ 384,796 $ 394,292
Cost of sales, including certain buying,
distribution and occupancy costs 241,491 235,612
----------- -----------
Gross profit 143,305 158,680
Selling, general and administrative expenses 97,185 95,738
----------- -----------
Income from operations 46,120 62,942
Other income, net 2,091 3,220
----------- -----------
Income before income taxes 48,211 66,162
Income tax expense 17,406 23,605
----------- -----------
Net income $ 30,805 $ 42,557
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Net income per common share:
Basic $ 0.18 $ 0.26
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Diluted $ 0.18 $ 0.25
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Weighted average common shares outstanding:
Basic 167,455,872 166,119,099
=========== ===========
Diluted 170,316,708 170,603,420
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PERCENT OF NET SALES
Net sales 100% 100%
Cost of sales, including certain buying,
distribution and occupancy costs 62.8 59.8
----------- -----------
Gross profit 37.2 40.2
Selling, general and administrative expenses 25.2 24.2
----------- -----------
Income from operations 12.0 16.0
Other income, net 0.5 0.8
----------- -----------
Income before income taxes 12.5 16.8
Income tax expense 4.5 6.0
----------- -----------
Net income 8.0% 10.8%
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URBAN OUTFITTERS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
April 30, January 31, April 30,
2009 2009 2008
---------- ---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 224,732 $ 316,035 $ 164,030
Marketable securities 72,893 49,948 55,101
Accounts receivable, net of
allowance for doubtful accounts
of $1,400, $1,229 and $1,522,
respectively 28,499 36,390 25,593
Inventories 189,881 169,698 191,287
Prepaid expenses, deferred taxes
and other current assets 41,968 52,331 46,228
---------- ---------- ----------
Total current assets 557,973 624,402 482,239
Property and equipment, net 520,945 505,407 498,789
Marketable securities 266,527 155,226 187,549
Deferred income taxes and other
assets 43,325 43,974 36,708
---------- ---------- ----------
Total Assets $1,388,770 $1,329,009 $1,205,285
========== ========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 81,437 $ 62,955 $ 81,112
Accrued expenses, accrued
compensation and other current
liabilities 82,888 78,195 92,312
---------- ---------- ----------
Total current liabilities 164,325 141,150 173,424
Deferred rent and other liabilities 132,819 134,084 123,469
---------- ---------- ----------
Total Liabilities 297,144 275,234 296,893
---------- ---------- ----------
Shareholders' equity:
Preferred shares; $.0001 par
value, 10,000,000 shares
authorized, none issued -- -- --
Common shares; $.0001 par value,
200,000,000 shares authorized,
168,042,088, 167,712,088 and
166,967,614 issued and
outstanding, respectively 17 17 17
Additional paid-in capital 173,527 170,166 157,490
Retained earnings 932,144 901,339 744,532
Accumulated other comprehensive
(loss) income (14,062) (17,747) 6,353
---------- ---------- ----------
Total Shareholders' Equity 1,091,626 1,053,775 908,392
---------- ---------- ----------
Total Liabilities and Shareholders'
Equity $1,388,770 $1,329,009 $1,205,285
========== ========== ==========