Urban Outfitters 2009 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2009 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 85

  • 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

Seasonality and Quarterly Results
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 GAAP 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 2009 Quarter Ended
April 30,
2008
July 31,
2008
Oct. 31,
2008
Jan. 31,
2009
(dollars in thousands, except per share data)
Net sales ..................................... $394,292 $454,295 $477,953 $508,078
Gross profit ................................... 158,680 186,510 195,396 172,892
Net income ................................... 42,557 56,988 59,274 40,545
Net income per common share—basic .............. 0.26 0.34 0.35 0.24
Net income per common share—diluted ............ 0.25 0.33 0.35 0.24
As a Percentage of Fiscal Year:
Net sales ..................................... 21% 25% 26% 28%
Net income ................................... 21% 29% 30% 20%
Fiscal 2008 Quarter Ended
April 30,
2007
July 31,
2007
Oct. 31,
2007
Jan. 31,
2008
(dollars in thousands, except per share data)
Net sales ..................................... $314,544 $348,449 $379,320 $465,411
Gross profit ................................... 112,615 130,027 149,938 184,192
Net income ................................... 29,367 31,866 45,382 53,616
Net income per common share—basic .............. 0.18 0.19 0.27 0.32
Net income per common share—diluted ............ 0.17 0.19 0.27 0.32
As a Percentage of Fiscal Year:
Net sales ..................................... 21% 23% 25% 31%
Net income ................................... 18% 20% 28% 34%
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company is 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 the Company’s inventory turnover rate and its
historical ability to pass through the impact of any generalized changes in its cost of goods to its
customers through pricing adjustments, commodity and other product risks are not expected to be
material. The Company purchases the majority of its merchandise in U.S. dollars, including a portion
of the goods for its stores located in Canada and Europe.
The Company’s exposure to market risk for changes in interest rates relates to its cash,
cash equivalents and marketable securities. As of January 31, 2009 the Company’s cash, cash
equivalents and marketable securities consisted primarily of funds invested in money market accounts,
36