Urban Outfitters Inc. (NASDAQ:URBN) Q2 2021 Earnings Conference Call - Final Transcript
Aug 26, 2020 • 05:15 pm ET
Good day, ladies and gentlemen, and welcome to the Urban Outfitters Inc. Second Quarter Fiscal 2021 Earnings Call. [Operator Instructions] I would now like to introduce Oona McCullough, Director of Investor Relations. Ms. McCullough, you may begin.
Good afternoon and welcome to the URBN Second Quarter Fiscal 2021 Conference Call. Earlier this afternoon, the Company issued a press release outlining the financial and operating results for the three and six-month periods ending July 31, 2020.
The following discussions may include forward-looking statements. It's important to note at this time, the global COVID-19 pandemic has had and continues to have a significant material impact Urban Outfitters Inc.'s business. Given an extremely high level of uncertainty about the duration and extent of the virus' near and long-term impact to the global retail environment, content discussed on today's call could change materially at any time. Accordingly, future results could differ materially from historical practices and results or current descriptions, estimates and suggestions. Additional information concerning factors that could cause actual results to differ materially from projected results is contained in the Company's filings with the Securities and Exchange Commission.
On today's call, you will hear Frank Conforti, Chief Financial Officer, URBN; Sheila Harrington, President, Free People; and Richard Hayne, Chief Executive Officer, URBN. Following that, we will be pleased to address your questions. For more detailed commentary on our quarterly performance and the text of today's conference call, please refer to our Investor Relations website at www.urbn.com.
I will now turn the call over to Frank.
Frank J. Conforti
Thank you, Oona, and good afternoon, everyone. Well, I said it last quarter and I will say it again, what a difference a few months can make. We started the quarter with just a few stores opened and finished it with almost all stores up and running. With the digital channel continuing to produce strong double-digit results across each brand, most stores operating, inventory well managed and disciplined expense control, we were able to maintain our strong financial position. We ended the quarter with over $670 million in cash and marketable securities, while repaying $100 million of our borrowings from earlier this year. Given the incredibly difficult environment, it just [Phonetic] certainly feels good to put up a healthy operating income number of almost $70 million and over 8% operating profit rate.
Before I speak about our upcoming quarter, please note: obviously, these are unusual times and there is a lot of uncertainty out there right now. Our thoughts on the third quarter are as of today. And as we have learned all too often in 2020, the environment can change at a moment's notice. As we enter the third quarter of fiscal year 2021, it may be helpful for you to consider the following. Our URBN comp sales have started out the third quarter showing improvement from Q2 with almost all stores opened and our digital channel remaining double-digit positive at all brands.
Based on our quarter-to-date performance and current view of the quarter, we believe our