urbn-8k_20210824.htm
false 0000912615 0000912615 2021-08-24 2021-08-24

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

 

FORM 8-K 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 24, 2021 

 

URBAN OUTFITTERS, INC.

(Exact Name of Registrant as Specified in its Charter) 

 

 

 

 

 

 

 

Pennsylvania

 

000-22754

 

23-2003332

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

5000 South Broad Street, Philadelphia, PA

 

19112

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code (215454-5500

N/A

(Former name or former address, if changed since last report) 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Shares, par value $.0001 per share

 

URBN

 

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule l2b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

 


 

 

 

 

Item 8.01.

Other Events

On August 24, 2021, Urban Outfitters, Inc. (the “Company”) issued a press release, which is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release disclosed material non-public information regarding the Company’s operating results for the three and six months ended July 31, 2021.

 

Item 9.01.

Financial Statements and Exhibits

 

Exhibit No.

Description

 

 

99.1

Press Release dated August 24, 2021 – Operating results for the three and six months ended July 31, 2021

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

- 1 -

 


 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

URBAN OUTFITTERS, INC.

 

 

 

 

 

 

 

Date: August 25, 2021

 

 

 

By:

 

/s/ Melanie Marein-Efron

 

 

 

 

 

 

 

 

Melanie Marein-Efron

 

 

 

 

 

 

 

 

Chief Financial Officer

 

- 2 -

 

 

urbn-ex991_6.htm

 

 

 

 

Exhibit 99.1

URBAN OUTFITTERS, INC.

Second Quarter Results

Philadelphia, PA – August 24, 2021

 

For Immediate Release

 

Contact:

 

Oona McCullough

 

 

 

 

Executive Director of Investor Relations

 

 

 

 

(215) 454-4806

URBN Q2: Record Sales, Record Profits

PHILADELPHIA, PA, August 24, 2021 – Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands comprised of the Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands, today announced net income of $127 million and earnings per diluted share of $1.28 for the three months ended July 31, 2021. For the six months ended July 31, 2021, net income was $181 million and earnings per diluted share were $1.82.

Due to the material impact of COVID-19 on our business operations in fiscal 2021, including mandated store closures, this release includes a comparison of fiscal 2022 results to fiscal 2020. Management views the comparison of fiscal 2022 results to fiscal 2020 as the more meaningful measurement of the Company’s business performance.

Total Company net sales for the three months ended July 31, 2021, were a record $1.16 billion. Net sales increased 20.3% compared to the three months ended July 31, 2019. Comparable Retail segment net sales increased 22%, driven by strong double-digit growth in digital channel sales, partially offset by low single-digit negative retail store sales due to reduced store traffic. By brand, comparable Retail segment net sales increased 53% at the Free People Group, 20% at Urban Outfitters and 14% at the Anthropologie Group. Total Retail segment net sales increased 24%. Wholesale segment net sales decreased 30% primarily from reducing the Free People Group’s sales to promotional wholesale customers.

For the six months ended July 31, 2021, total Company net sales increased 14.1% compared to the six months ended July 31, 2019. Comparable Retail segment net sales increased 17%, driven by strong double-digit growth in digital channel sales, partially offset by double-digit negative retail store sales due to reduced store traffic resulting from temporary store closures and occupancy restrictions in Europe and Canada. Wholesale segment net sales decreased 27% primarily from reducing the Free People Group’s sales to promotional wholesale customers.

“We’re pleased to report record second quarter sales and earnings driven by extraordinary performance at all three brands,” said Richard A. Hayne, Chief Executive Officer. “Congratulations to all Brand, Creative and Shared teams for the exceptional execution that led to a 110% increase in earnings per share over fiscal 2020,” finished Mr. Hayne.

Net sales by brand and segment for the three and six-month periods were as follows:

 

 

Three Months Ended

 

 

July 31,

 

 

2021

 

 

2020

 

 

2019

 

Net sales by brand

 

 

 

 

 

 

 

 

 

 

 

Urban Outfitters

$

441,616

 

 

$

323,889

 

 

$

355,045

 

Anthropologie Group

 

450,593

 

 

 

295,126

 

 

 

394,280

 

Free People Group

 

249,708

 

 

 

178,019

 

 

 

205,940

 

Menus & Venues

 

5,869

 

 

 

1,560

 

 

 

7,064

 

Nuuly (1)

 

9,939

 

 

 

4,672

 

 

 

 

Total Company

$

1,157,725

 

 

$

803,266

 

 

$

962,329

 

 

 

 

 


 

 

 

 

 

 

Three Months Ended

 

 

July 31,

 

 

2021

 

 

2020

 

 

2019

 

Net sales by segment

 

 

 

 

 

 

 

 

 

 

 

Retail Segment

$

1,089,022

 

 

$

757,471

 

 

$

878,693

 

Wholesale Segment

 

58,764

 

 

 

41,123

 

 

 

83,636

 

Subscription Segment (1)

 

9,939

 

 

 

4,672

 

 

 

 

Total Company

$

1,157,725

 

 

$

803,266

 

 

$

962,329

 

 

 

Six Months Ended

 

 

July 31,

 

 

2021

 

 

2020

 

 

2019

 

Net sales by brand

 

 

 

 

 

 

 

 

 

 

 

Urban Outfitters

$

791,297

 

 

$

561,209

 

 

$

671,851

 

Anthropologie Group

 

804,160

 

 

 

529,201

 

 

 

749,268

 

Free People Group

 

462,459

 

 

 

285,683

 

 

 

392,131

 

Menus & Venues

 

9,465

 

 

 

4,714

 

 

 

13,492

 

Nuuly (1)

 

17,759

 

 

 

10,942

 

 

 

 

Total Company

$

2,085,140

 

 

$

1,391,749

 

 

$

1,826,742

 

 

 

Six Months Ended

 

 

July 31,

 

 

2021

 

 

2020

 

 

2019

 

Net sales by segment

 

 

 

 

 

 

 

 

 

 

 

Retail Segment

$

1,946,508

 

 

$

1,318,703

 

 

$

1,661,256

 

Wholesale Segment

 

120,873

 

 

 

62,104

 

 

 

165,486

 

Subscription Segment (1)

 

17,759

 

 

 

10,942

 

 

 

 

Total Company

$

2,085,140

 

 

$

1,391,749

 

 

$

1,826,742

 

 

(1)

The Subscription segment (which is comprised of the Nuuly brand) began operations on July 30, 2019.

For the three months ended July 31, 2021, the gross profit rate increased by 478 basis points compared to the three months ended July 31, 2019. Gross profit dollars increased by $119.4 million to $435.3 million from $315.9 million in the three months ended July 31, 2019. The increase in gross profit rate was primarily due to record low second quarter merchandise markdown rates in the Retail segment and a leverage in store occupancy expense primarily due to the increased penetration of the digital channel in Retail segment net sales.  All three brands recorded lower merchandise markdown rates with the Urban Outfitters and Anthropologie brands achieving record low second quarter merchandise markdown rates. This was partially offset by a deleverage in delivery and logistics expenses. Delivery and logistics expense deleverage was primarily driven by the increased penetration of the digital channel. Logistics expense also deleveraged due to increased wages at our distribution and fulfillment centers in order to attract and retain appropriate levels of employees.

For the six months ended July 31, 2021, the gross profit rate increased by 327 basis points compared to the six months ended July 31, 2019. Gross profit dollars increased by $151.0 million to $735.9 million from $584.9 million in the six months ended July 31, 2019. The increase in gross profit rate was primarily due to record low first half merchandise markdown rates in the Retail segment and a leverage in store occupancy expense due to the increased penetration of the digital channel in Retail segment net sales.  All three brands recorded record low first half merchandise markdown rates. This was partially offset by a deleverage in delivery and logistics expenses. Delivery and logistics expense deleverage was primarily driven by the increased penetration of the digital channel. Logistics expense also deleveraged due to increased wages at our distribution and fulfillment centers in order to attract and retain appropriate levels of employees.

As of July 31, 2021, total inventory increased by $43.1 million, or 9.8%, compared to total inventory as of July 31, 2019.  The increase in inventory was due to the increase in net sales.

For the three months ended July 31, 2021, selling, general and administrative expenses increased by $31.6 million, or 13.3%, compared to the three months ended July 31, 2019, and expressed as a percentage of net sales, decreased to 23.3%

 


 

 

 

 

from 24.7% in the three months ended July 31, 2019. The leverage in selling, general and administrative expenses as a rate to sales was primarily related to disciplined store payroll management and overall expense control that was partially offset by a deleverage in digital marketing and creative expenses during the quarter to support the strong digital sales and customer growth. The increase in dollars was primarily driven by the increase in digital marketing and creative expenses partially offset by the reduction in direct selling expenses due to the lower retail store net sales.

For the six months ended July 31, 2021, selling, general, and administrative expense increased by $29.7 million, or 6.4%, compared to the prior year’s comparable period and expressed as a percentage of net sales, decreased to 23.8% from 25.5% in the six months ended July 31, 2019. The leverage in selling, general and administrative expenses as a rate to sales was primarily related to disciplined store payroll management and overall expense control that was partially offset by a deleverage in digital marketing and creative expenses during the period to support the strong digital sales and customer growth. The increase in dollars was primarily driven by the increase in digital marketing and creative expenses to support the overall growth of the Company partially offset by the reduction in direct selling expenses due to the lower retail store net sales.

The Company’s effective tax rate for the three months ended July 31, 2021, was 22.4% compared to 26.0% in the three months ended July 31, 2019. The Company’s effective tax rate for the six months ended July 31, 2021, was 23.8% compared to 25.2% in the six months ended July 31, 2019. The decrease in the effective tax rate for the three and six months ended July 31, 2021, was primarily due to the ratio of foreign taxable profits to global taxable profits.

Net income for the three months ended July 31, 2021, was $127 million and record second quarter earnings per diluted share were $1.28. Net income for the six months ended July 31, 2021, was $181 million and record first half earnings per diluted share were $1.82.

On August 22, 2017, the Company’s Board of Directors authorized the repurchase of 20 million common shares under a share repurchase program. 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 six months ended July 31, 2021, the Company did not repurchase any shares. During the year ended January 31, 2021, the Company repurchased and subsequently retired 0.5 million common shares for approximately $7 million. These shares were repurchased prior to the known spread of the COVID-19 pandemic in the United States that forced the Company to close its stores for an extended period of time. As of July 31, 2021, 25.9 million common shares were remaining under the programs.

During the six months ended July 31, 2021, the Company opened a total of 28 new retail locations including: 15 Free People Group stores (including 7 FP Movement stores), 9 Urban Outfitters stores and 4 Anthropologie Group stores; and closed 6 retail locations including: 2 Free People Group stores, 2 Anthropologie Group stores, 1 Urban Outfitters store and 1 Menus & Venues restaurant. During the six months ended July 31, 2021, 1 Urban Outfitters franchisee-owned store and 1 Anthropologie Group franchisee-owned store were opened.

Urban Outfitters, Inc., offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 255 Urban Outfitters stores in the United States, Canada and Europe and websites; 239 Anthropologie Group stores in the United States, Canada and Europe, catalogs and websites; 162 Free People Group stores in the United States, Canada and Europe, catalogs and websites, 10 Menus & Venues restaurants, 2 Urban Outfitters franchisee-owned stores and 1 Anthropologie Group franchisee-owned store, as of July 31, 2021. 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.

A conference call will be held today to discuss second quarter results and will be webcast at 5:30 pm. ET at: https://edge.media-server.com/mmc/p/di4txumm

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: the impacts of public health crises such as the coronavirus (COVID-19) pandemic, overall economic and market conditions and worldwide political events and the resultant impact on consumer spending patterns, 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, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises, increases in labor costs, increases in raw material 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 Operations

(amounts in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

 

 

July 31,

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,157,725

 

 

$

803,266

 

 

$

962,329

 

Cost of sales

 

722,460

 

 

 

565,228

 

 

 

646,454

 

          Gross profit

 

435,265

 

 

 

238,038

 

 

 

315,875

 

Selling, general and administrative expenses

 

269,412

 

 

 

168,619

 

 

 

237,814

 

          Income from operations

 

165,853

 

 

 

69,419

 

 

 

78,061

 

Other (loss) income, net

 

(1,797

)

 

 

(533

)

 

 

3,498

 

         Income before income taxes

 

164,056

 

 

 

68,886

 

 

 

81,559

 

Income tax expense

 

36,794

 

 

 

34,486

 

 

 

21,239

 

          Net income

$

127,262

 

 

$

34,400

 

 

$

60,320

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

       Basic

$

1.29

 

 

$

0.35

 

 

$

0.61

 

       Diluted

$

1.28

 

 

$

0.35

 

 

$

0.61

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

       Basic

 

98,315,441

 

 

 

97,778,749

 

 

 

99,095,562

 

       Diluted

 

99,601,292

 

 

 

98,104,918

 

 

 

99,602,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AS A PERCENTAGE OF NET SALES

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Cost of sales

 

62.4

%

 

 

70.4

%

 

 

67.2

%

         Gross profit

 

37.6

%

 

 

29.6

%

 

 

32.8

%

Selling, general and administrative expenses

 

23.3

%

 

 

21.0

%

 

 

24.7

%

          Income from operations

 

14.3

%

 

 

8.6

%

 

 

8.1

%

Other (loss) income, net

 

(0.1

%)

 

 

(0.0

%)

 

 

0.4

%

         Income before income taxes

 

14.2

%

 

 

8.6

%

 

 

8.5

%

Income tax expense

 

3.2

%

 

 

4.3

%

 

 

2.2

%

          Net income

 

11.0

%

 

 

4.3

%

 

 

6.3

%

 

 

 

 

 

 

 

 

 


 

 

 

 

 

URBAN OUTFITTERS, INC.

Condensed Consolidated Statements of Operations

(amounts in thousands, except share and per share data)

(unaudited)

 

 

Six Months Ended

 

 

July 31,

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

2,085,140

 

 

$

1,391,749

 

 

$

1,826,742

 

Cost of sales (excluding store impairment)

 

1,349,224

 

 

 

1,127,340

 

 

 

1,241,811

 

Store impairment

 

 

 

 

14,528

 

 

 

 

          Gross profit

 

735,916

 

 

 

249,881

 

 

 

584,931

 

Selling, general and administrative expenses

 

496,560

 

 

 

379,197

 

 

 

466,850

 

          Income (loss) from operations

 

239,356

 

 

 

(129,316

)

 

 

118,081

 

Other (loss) income, net

 

(1,952

)

 

 

(371

)

 

 

6,178

 

         Income (loss) before income taxes

 

237,404

 

 

 

(129,687

)

 

 

124,259

 

Income tax expense (benefit)

 

56,595

 

 

 

(25,645

)

 

 

31,354

 

          Net income (loss)

$

180,809

 

 

$

(104,042

)

 

$

92,905

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

       Basic

$

1.84

 

 

$

(1.06

)

 

$

0.91

 

       Diluted

$

1.82

 

 

$

(1.06

)

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

       Basic

 

98,213,555

 

 

 

97,843,796

 

 

 

101,722,244

 

       Diluted

 

99,463,468

 

 

 

97,843,796

 

 

 

102,427,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AS A PERCENTAGE OF NET SALES

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Cost of sales (excluding store impairment)

 

64.7

%

 

 

81.0

%

 

 

68.0

%

Store impairment

 

 

 

 

1.0

%

 

 

 

         Gross profit

 

35.3

%

 

 

18.0

%

 

 

32.0

%

Selling, general and administrative expenses

 

23.8

%

 

 

27.3

%

 

 

25.5

%

          Income (loss) from operations

 

11.5

%

 

 

(9.3

%)

 

 

6.5

%

Other (loss) income, net

 

(0.1

%)

 

 

(0.0

%)

 

 

0.3

%

         Income (loss) before income taxes

 

11.4

%

 

 

(9.3

%)

 

 

6.8

%

Income tax expense (benefit)

 

2.7

%

 

 

(1.8

%)

 

 

1.7

%

          Net income (loss)

 

8.7

%

 

 

(7.5

%)

 

 

5.1

%

 


 

 

 

 

 

URBAN OUTFITTERS, INC.

Condensed Consolidated Balance Sheets

(amounts in thousands, except share data)

(unaudited)

 

 

July 31,

 

 

January 31,

 

 

July 31,

 

 

July 31,

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Cash and cash equivalents

$

464,811

 

 

$

395,635

 

 

$

662,860

 

 

$

162,018

 

    Marketable securities

 

156,982

 

 

 

174,695

 

 

 

501

 

 

 

171,398

 

    Accounts receivable, net of allowance for doubtful accounts

         of $1,302, $4,028, $4,123 and $939, respectively

 

94,402

 

 

 

89,952

 

 

 

60,441

 

 

 

95,131

 

    Inventory

 

483,148

 

 

 

389,618

 

 

 

351,771

 

 

 

440,087

 

    Prepaid expenses and other current assets

 

196,070

 

 

 

173,432

 

 

 

195,393

 

 

 

131,763

 

            Total current assets

 

1,395,413

 

 

 

1,223,332

 

 

 

1,270,966

 

 

 

1,000,397

 

Property and equipment, net

 

1,047,751

 

 

 

967,422

 

 

 

889,126

 

 

 

867,434

 

Operating lease right-of-use assets

 

1,068,919

 

 

 

1,114,762

 

 

 

1,134,678

 

 

 

1,085,543

 

Marketable securities

 

113,249

 

 

 

123,662

 

 

 

9,216

 

 

 

78,857

 

Deferred income taxes and other assets

 

117,556

 

 

 

117,167

 

 

 

121,292

 

 

 

105,814

 

           Total Assets

$

3,742,888

 

 

$

3,546,345

 

 

$

3,425,278

 

 

$

3,138,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Accounts payable

$

240,245

 

 

$

237,386

 

 

$

207,261

 

 

$

181,955

 

    Current portion of operating lease liabilities

 

243,338

 

 

 

254,703

 

 

 

270,326

 

 

 

209,072

 

    Accrued expenses, accrued compensation and other

         current liabilities

 

462,782

 

 

 

414,043

 

 

 

293,629

 

 

 

235,106

 

           Total current liabilities

 

946,365

 

 

 

906,132

 

 

 

771,216

 

 

 

626,133

 

Non-current portion of operating lease liabilities

 

1,030,212

 

 

 

1,074,009

 

 

 

1,102,250

 

 

 

1,090,623

 

Long-term debt

 

 

 

 

 

 

 

120,000

 

 

 

 

Deferred rent and other liabilities

 

96,891

 

 

 

88,846

 

 

 

81,219

 

 

 

59,885

 

           Total Liabilities

 

2,073,468

 

 

 

2,068,987

 

 

 

2,074,685

 

 

 

1,776,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Preferred shares; $.0001 par value, 10,000,000 shares

         authorized, none issued

 

 

 

 

 

 

 

 

 

 

 

    Common shares; $.0001 par value, 200,000,000 shares

         authorized, 98,357,090, 97,815,985, 97,779,586 and

         97,965,012 shares issued and outstanding, respectively

10

 

 

10

 

 

10

 

 

10

 

    Additional paid-in-capital

 

26,581

 

 

 

19,360

 

 

 

9,956

 

 

 

 

    Retained earnings

 

1,655,917

 

 

 

1,475,108

 

 

 

1,369,830

 

 

 

1,398,681

 

    Accumulated other comprehensive loss

 

(13,088

)

 

 

(17,120

)

 

 

(29,203

)

 

 

(37,287

)

           Total Shareholders’ Equity

 

1,669,420

 

 

 

1,477,358

 

 

 

1,350,593

 

 

 

1,361,404

 

           Total Liabilities and Shareholders’ Equity

$

3,742,888

 

 

$

3,546,345

 

 

$

3,425,278

 

 

$

3,138,045

 


 


 

 

 

 

URBAN OUTFITTERS, INC.

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

(unaudited)

 

 

Six Months Ended

 

 

 

July 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

180,809

 

 

$

(104,042

)

 

$

92,905

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

51,223

 

 

 

53,388

 

 

 

55,395

 

Non-cash lease expense

 

 

95,097

 

 

 

97,655

 

 

 

94,173

 

(Benefit) provision for deferred income taxes

 

 

(1,275

)

 

 

(17,074

)

 

 

1,107

 

Share-based compensation expense

 

 

11,968

 

 

 

11,257

 

 

 

11,461

 

Store impairment

 

 

 

 

 

14,528

 

 

 

 

Loss on disposition of property and equipment, net

 

 

121

 

 

 

679

 

 

 

593

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

(4,349

)

 

 

27,912

 

 

 

(15,032

)

Inventory

 

 

(93,049

)

 

 

58,002

 

 

 

(71,899

)

Prepaid expenses and other assets

 

 

4,272

 

 

 

(62,170

)

 

 

(23,121

)

Payables, accrued expenses and other liabilities

 

 

61,586

 

 

 

94,196

 

 

 

16,009

 

Operating lease liabilities

 

 

(111,210

)

 

 

(59,115

)

 

 

(100,338

)

Net cash provided by operating activities

 

 

195,193

 

 

 

115,216

 

 

 

61,253

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for property and equipment

 

 

(105,624

)

 

 

(72,103

)

 

 

(116,465

)

Cash paid for marketable securities

 

 

(165,927

)

 

 

(92,949

)

 

 

(235,094

)

Sales and maturities of marketable securities

 

 

148,582

 

 

 

383,056

 

 

 

320,411

 

Net cash (used in) provided by investing activities

 

 

(122,969

)

 

 

218,004

 

 

 

(31,148

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under debt

 

 

 

 

 

220,000

 

 

 

 

Repayments of debt

 

 

 

 

 

(100,000

)

 

 

 

Proceeds from the exercise of stock options

 

 

2,816

 

 

 

 

 

 

974

 

Share repurchases related to share repurchase program

 

 

 

 

 

(7,036

)

 

 

(217,421

)

Share repurchases related to taxes for share-based awards

 

 

(7,562

)

 

 

(3,742

)

 

 

(5,429

)

Net cash (used in) provided by financing activities

 

 

(4,746

)

 

 

109,222

 

 

 

(221,876

)

Effect of exchange rate changes on cash and cash equivalents

 

 

1,698

 

 

 

(1,421

)

 

 

(4,471

)

Increase (decrease) in cash and cash equivalents

 

 

69,176

 

 

 

441,021

 

 

 

(196,242

)

Cash and cash equivalents at beginning of period

 

 

395,635

 

 

 

221,839

 

 

 

358,260

 

Cash and cash equivalents at end of period

 

$

464,811

 

 

$

662,860

 

 

$

162,018