Urban Outfitters Inc. (URBN, Financial) filed Quarterly Report for the period ended 2008-10-31.
Urban Outfitters Inc. operates two business segments consisting of a lifestyle-oriented general merchandise retailing segment and a wholesale apparel business. The retailing segment operates through retail stores and direct response including a catalog and two web sites. The company's wholesale business designs and markets young women's casual wear which it provides to the company's retail operations and sells to specialty retailers worldwide. Urban Outfitters Inc. has a market cap of $3.44 billion; its shares were traded at around $15.33 with a P/E ratio of 16.44 and P/S ratio of 2.28. Urban Outfitters Inc. had an annual average earning growth of 27.9% over the past 10 years. GuruFocus rated Urban Outfitters Inc. the business predictability rank of 3-star.
Gross profit for the third quarter of fiscal 2009 increased to 40.9% of net sales or $195.4 million from 39.5% of net sales or $149.9 million in fiscal 2008. The increase was primarily due to leveraging of store occupancy costs, reductions in merchandise markdowns and improvements in initial merchandise cost. Total inventories at October 31, 2008 increased by 18.6% to $252.3 million from $212.7 million at October 31, 2007. The increase primarily related to the acquisition of inventory to stock new retail stores. On a comparable store basis, inventories increased by 2.2%.
Net sales for the nine months ended October 31, 2008 increased by $284.2 million or 27.3% to $1,326.5 million from $1,042.3 million in the comparable period of fiscal 2008. This increase was primarily attributable to a $268.9 million, or 27.7%, increase in retail segment net sales. Retail segment net sales for the nine months ended October 31, 2008 accounted for 93.5% of total net sales compared to 93.2% of net sales for the comparable period of fiscal 2008. Wholesale segment net sales, excluding net sales to our retail segment, increased $15.3 million, or 21.6%, to $86.1 million during the nine months ended October 31, 2008 compared to $70.8 million for the comparable period of fiscal 2008. The growth in our retail segment net sales was driven by a $126.8 million increase in new and non-comparable store net sales, a $51.8 million increase in direct-to-consumer net sales and an increase of $90.3 million in comparable store sales. Our total comparable store net sales increase of 11.2% was comprised of increases of 15.5% at Urban Outfitters, 6.6% at Anthropologie and 10.8% at Free People.
wholesale collection. Selling, general and administrative expenses during the nine month period increased 22.7% or $56.4 million to $304.3 million from $248.0 million in the comparable period in fiscal 2008. The increase primarily related to the operating expenses of new and non-comparable stores.
Cash, cash equivalents and marketable securities were $424.4 million as of October 31, 2008, as compared to $373.7 million as of January 31, 2008 and $269.3 million as of October 31, 2007. Cash provided by operating activities was $124.9 million for the nine months ended October 31, 2008, versus $123.6 million for the comparable period in fiscal 2008. Cash used in investing activities for the nine months ended October 31, 2008 was $176.1 million, of which the primary use was for construction of new stores and purchases of marketable securities. Our net working capital was $373.0 million as of October 31, 2008 compared to $266.2 million at January 31, 2008 and $306.5 million as of October 31, 2007. Increases in working capital primarily relate to the volume of cash, cash equivalents, marketable securities and inventories relative to inventory-related payables and store-related accruals.
increase in available credit up to $100.0 million at our discretion, subject to a seven day request period. As of October 31, 2008, the credit limit under the Line was $60.0 million. The Line contains a sub-limit for borrowings by our European subsidiaries that are guaranteed by us. Cash advances bear interest at LIBOR plus 0.50% to 1.60% based on our achievement of prescribed adjusted debt ratios. The Line subjects us to various restrictive covenants, including maintenance of certain financial ratios and covenants such as fixed charge coverage and adjusted debt. The covenants also include limitations on our capital expenditures, ability to repurchase shares and the payment of cash dividends. As of and during the nine months ended October 31, 2008, there were no borrowings under the Line. Outstanding letters of credit and stand-by letters of credit under the Line totaled approximately $40.2 million as of October 31, 2008. The available credit, including the accordion feature under the Line was $59.8 million as of October 31, 2008. We believe the renewed Line will satisfy our letter of credit needs through fiscal 2011.
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Urban Outfitters Inc. operates two business segments consisting of a lifestyle-oriented general merchandise retailing segment and a wholesale apparel business. The retailing segment operates through retail stores and direct response including a catalog and two web sites. The company's wholesale business designs and markets young women's casual wear which it provides to the company's retail operations and sells to specialty retailers worldwide. Urban Outfitters Inc. has a market cap of $3.44 billion; its shares were traded at around $15.33 with a P/E ratio of 16.44 and P/S ratio of 2.28. Urban Outfitters Inc. had an annual average earning growth of 27.9% over the past 10 years. GuruFocus rated Urban Outfitters Inc. the business predictability rank of 3-star.
Highlight of Business Operations:
Net sales for the third quarter of fiscal 2009 increased by $98.6 million or 26.0% to $478.0 million from $379.3 million in the third quarter of fiscal 2008. This increase was primarily attributable to a $91.5 million, or 26.0%, increase in retail segment net sales. Retail segment net sales for the third quarter of fiscal 2009 and fiscal 2008 accounted for 92.9% of total net sales. Wholesale segment net sales, excluding net sales to our retail segment, increased $7.1 million, or 26.5%, to $33.9 million during the third quarter of fiscal 2009. The growth in our retail segment net sales during the third quarter of fiscal 2009 was driven by a $43.0 million increase in new and non-comparable store net sales, a $19.1 million increase in direct-to-consumer net sales and an increase of $29.4 million in comparable store net sales. Our total comparable store net sales increase of 9.9% was comprised of increases of 17.1% at Urban Outfitters, 1.8% at Anthropologie and 3.9% at Free People.Gross profit for the third quarter of fiscal 2009 increased to 40.9% of net sales or $195.4 million from 39.5% of net sales or $149.9 million in fiscal 2008. The increase was primarily due to leveraging of store occupancy costs, reductions in merchandise markdowns and improvements in initial merchandise cost. Total inventories at October 31, 2008 increased by 18.6% to $252.3 million from $212.7 million at October 31, 2007. The increase primarily related to the acquisition of inventory to stock new retail stores. On a comparable store basis, inventories increased by 2.2%.
Net sales for the nine months ended October 31, 2008 increased by $284.2 million or 27.3% to $1,326.5 million from $1,042.3 million in the comparable period of fiscal 2008. This increase was primarily attributable to a $268.9 million, or 27.7%, increase in retail segment net sales. Retail segment net sales for the nine months ended October 31, 2008 accounted for 93.5% of total net sales compared to 93.2% of net sales for the comparable period of fiscal 2008. Wholesale segment net sales, excluding net sales to our retail segment, increased $15.3 million, or 21.6%, to $86.1 million during the nine months ended October 31, 2008 compared to $70.8 million for the comparable period of fiscal 2008. The growth in our retail segment net sales was driven by a $126.8 million increase in new and non-comparable store net sales, a $51.8 million increase in direct-to-consumer net sales and an increase of $90.3 million in comparable store sales. Our total comparable store net sales increase of 11.2% was comprised of increases of 15.5% at Urban Outfitters, 6.6% at Anthropologie and 10.8% at Free People.
wholesale collection. Selling, general and administrative expenses during the nine month period increased 22.7% or $56.4 million to $304.3 million from $248.0 million in the comparable period in fiscal 2008. The increase primarily related to the operating expenses of new and non-comparable stores.
Cash, cash equivalents and marketable securities were $424.4 million as of October 31, 2008, as compared to $373.7 million as of January 31, 2008 and $269.3 million as of October 31, 2007. Cash provided by operating activities was $124.9 million for the nine months ended October 31, 2008, versus $123.6 million for the comparable period in fiscal 2008. Cash used in investing activities for the nine months ended October 31, 2008 was $176.1 million, of which the primary use was for construction of new stores and purchases of marketable securities. Our net working capital was $373.0 million as of October 31, 2008 compared to $266.2 million at January 31, 2008 and $306.5 million as of October 31, 2007. Increases in working capital primarily relate to the volume of cash, cash equivalents, marketable securities and inventories relative to inventory-related payables and store-related accruals.
increase in available credit up to $100.0 million at our discretion, subject to a seven day request period. As of October 31, 2008, the credit limit under the Line was $60.0 million. The Line contains a sub-limit for borrowings by our European subsidiaries that are guaranteed by us. Cash advances bear interest at LIBOR plus 0.50% to 1.60% based on our achievement of prescribed adjusted debt ratios. The Line subjects us to various restrictive covenants, including maintenance of certain financial ratios and covenants such as fixed charge coverage and adjusted debt. The covenants also include limitations on our capital expenditures, ability to repurchase shares and the payment of cash dividends. As of and during the nine months ended October 31, 2008, there were no borrowings under the Line. Outstanding letters of credit and stand-by letters of credit under the Line totaled approximately $40.2 million as of October 31, 2008. The available credit, including the accordion feature under the Line was $59.8 million as of October 31, 2008. We believe the renewed Line will satisfy our letter of credit needs through fiscal 2011.
Read the The complete Report
More on URBN:
Gurus buys and sells of URBN
10-year financial history of URBN.
Insider buys/sells of URBN.
