Urban Outfitters Inc. (NASDAQ:URBN) Q3 2021 Earnings Conference Call - Final Transcript
Nov 23, 2020 • 05:00 pm ET
Good day, ladies and gentlemen and welcome to the Urban Outfitters, Inc. Third Quarter Fiscal '21 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce the call to Oona McDonald -- I'm sorry, McCullough, Director of Investor Relations, Ms. McCullough, you may begin.
Good afternoon and welcome to the URBN third quarter fiscal 2021 conference call. Earlier this afternoon, the company issued a press release outlining the financial and operating results for the three and nine month periods ending October 31st, 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 on URBN'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 from Frank Conforti, Co-President, URBN; Trish Donnelly, Global CEO, Urban Outfitters Group; 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. It continues to be a year full of challenges and I believe we continue to meet them head on. All three brands delivered sales improvement from Q2 and recorded lower Q3 markdown rates versus last year. We produced a new record low markdown rate for the third quarter, which helped to drive nearly $100 million of operating profit and an op profit rate above 10%. Our balance sheet remains strong as we paid down the remaining $120 million on our outstanding line of credit and ended the quarter with $634 million in cash and marketable securities. Each brand controlled inventories well and ended the quarter with inventory below their sales performance. I have said it before and I don't mind saying it again, during an incredibly difficult environment, we could not be more proud of the teams and their exceptional execution.
Before I speak about our upcoming quarter, please note, there remains a high level of external uncertainty. The number of COVID cases are spiking at home and around the globe resulting in more government restrictions. So, as you can imagine, our current views could change at any time. Now, as we enter the fourth quarter of fiscal year 2021,