Urban Outfitters 2012 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2012 Urban Outfitters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

Table of Contents
Seasonality and Quarterly Results
Our business experiences seasonal fluctuations in net sales and operating income, with a more significant portion typically realized from August to
December 31stof each year (the back-to-school and holiday periods). The following tables set forth our net sales, gross profit, net income and net income per
common share (basic and diluted) for each quarter during the last two fiscal years and the amount of such net sales and net income, respectively, as a
percentage of annual net sales and annual net income. The unaudited financial information has been prepared in accordance with accounting principles
generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the
opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
Fiscal 2012 Quarter Ended (1)
April 30,
2011
July 31,
2011
Oct. 31,
2011
Jan. 31,
2012
(dollars in thousands, except per share data)
Net sales $ 524,019 $ 609,181 $ 609,953 $ 730,648
Gross profit 193,365 231,090 216,103 219,978
Net income 38,624 56,693 50,679 39,255
Net income per common share—basic 0.24 0.36 0.34 0.27
Net income per common share—diluted 0.23 0.35 0.33 0.27
As a Percentage of Fiscal Year:
Net sales 21% 25% 25% 29%
Net income 21% 31% 27% 21%
Fiscal 2011 Quarter Ended (1)
April 30,
2010
July 31,
2010
Oct. 31,
2010
Jan. 31,
2011
(dollars in thousands, except per share data)
Net sales $ 479,961 $ 552,159 $ 573,592 $ 668,390
Gross profit 200,786 234,781 235,993 265,060
Net income 52,957 71,657 73,106 75,238
Net income per common share—basic 0.31 0.42 0.44 0.46
Net income per common share—diluted 0.31 0.42 0.43 0.45
As a Percentage of Fiscal Year:
Net sales 21% 24% 25% 30%
Net income 19% 26% 27% 28%
(1) The sum of the quarterly per share amounts may not equal per share amounts reported for year-to-date periods. This is due to changes in the number of
weighted average shares outstanding and the effects of rounding for each period.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to the following types of market risks—fluctuations in the purchase price of merchandise, as well as other goods and services; the value
of foreign currencies in relation to the U.S. dollar; and changes in interest rates. Due to our inventory turnover rate and our historical ability to pass through
the impact of any generalized changes in our cost of goods to our customers through pricing adjustments, commodity and other product risks are not expected
to be material. We purchase substantially all of our merchandise in U.S. dollars, including a portion of the goods for our stores located in Canada and Europe.
36