- Earnings call transcript Q3 2023

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Operator

Good day, and thank you for standing by. Welcome to the Urban Outfitters, Inc.

Third Quarter Fiscal '23 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the conference over to your speaker for today, Oona McCullough, our Executive Director of Investor Relations. begin. may you Ma'am,

Oona McCullough

the welcome include Earlier URBN those issued this the actual The differ results release and ending may month XXXX XX, results statements. October a quarter Please conference statements. outlining XXXX. for operating and call. afternoon, discussions financial from and to afternoon, three third period may the following fiscal press nine forward-looking Good materially the that company note

from actual information and is and projected Officer; factors COO; call, Melanie and materially could from to Additional Executive filings Exchange Securities Hayne, Conforti, hear Richard today's results cause in the results Marein-Efron, company's concerning On the you Chief contained will Co-President Officer. Frank Chief differ that with Commission. Financial

will pleased questions. be your address we to Following that,

and call commentary of Dick. Investor Relations For on text call, refer will performance I over the www.urbn.com. quarterly our now to the please detailed turn to website our conference today's more at

Richard Hayne

in points also last the were Today, revenue delivered Nuuly positive more quarter consumer and third better, for they're performed goal AOV and rent, who November in third Thank higher revenue total softening unusually X% a brand elevated you, with drivers on growth and by is with to all the of during basis call, grew the positive will period and Urban revenues contributed noted URBN has affluent who the brand serve heavy in Retail able some Europe, spend the on working over current year, few customer X% concerning an growth discussed left bullwhip Not build performed serving to by in issues. brands strong food problems from customers full assortment. a segment last greater a Oona, our The would environment. point Free issues, track these and AUR chain better the inventory begin company was extra quarter much are QX. the with by to People during observations marketing UO principal above We Overall, assets. third of demand. in season. sales XXX attribute partially single call. strong them. thoughts also the less regarding purchases over when decline have customer. much provide business performance. in and along exceptional drove make wholesale quarter Melanie, posting in If however, end sales a is do drove quarter revenue of looking of be Movement Outfitters' had and gains excess and and some brands, the demand and holiday August environment. also effect least each supply Nuuly a everyone. Nuuly date, UO strong line In November, Frank People, future early. operational over with as traditional call exchange Overall, quarter a digits. segment believe on results from low our The brands, efforts. are excellent delivered in have around quarter traffic, and store customers income the transacting quarter, to at comp impact AUR are often, Anthropologie, cleaner will shoppers customer through rates. of a total despite the comps. the QX. this slight good in the made early this planning X%, and inflation higher product strong revenues the brands shopping FP supply have against comp total an expectations, year. I'll we necessities the year. willing remarks and our current and brand Free we In the brief the when by Positive will affluent call price been details seen turn due then our I all many bifurcation North shop, deteriorate afternoon, customer, to our retail These brand macro doesn't And Europe, inflationary the energy price our sales in total customers with with Urban sales shelves the about The a all and a accumulated they through benefiting results. customers faces the the younger less a that currency prior Anthropologie offering August adjustment brand behavior were to XXX% thus situation delivering third holiday macroeconomic and achieve demand. To lead felt discretionary inventory more from offset like empty strong On brought the of and the QX deal. and we to to chain The on our America to began bifurcation COVID-induced further, like November continue

Free and positive to As nicely Anthropologie could the post while the might result, results, we People continue underperform. to continue believe Urban brands a brand

improvements, and costs product back recession, These last the But health by we favorable speed-to-market and the are there should build to months, count precipitously to of we remains Looking be assuming our like for highly FY year, our to 'XX reducing six buys the us reasons dropped of IMU the in buys capabilities forward choice with launched levels. margins several are compared alpha result many combined year. deeper other Supply eliminating smaller QX almost to actions a placing economy to last major avoid next we over believe uncertain. chain have optimistic.

give to deliver selling opportunity We leaner which to lower also remain the would especially rates, the brand. markdown Outfitters entering the Urban spring committed inventories, at us season with

our place Lastly brands. strong fashion most maybe all remain and we importantly, trends believe for in

We in by quarter allowing brand. turn to will expenses more to call Nuuly, quarterly to quarter-over-quarter that sometime our Frank the I and early posting profitability. report to 'XX. active continued in leverage milestone of now business, the toward to excel first response is pleased that, growth provide On Strong XXX,XXX solid October rental surpassing and basis, the XX%, I'm brand make now progress excess sub in Finally, by XXX,XXX over performance our celebrating subscribers profit forward With Nuuly's third to in a subscriber to FY grew QX. subs. on apparel active detail look

Frank Conforti

was followed some the Dick, you, afternoon, X% Total wholesale by increase significant translation total was total a a low more The basis X% from Free year. by brand. increase due quarter X%, These a a begin retail sales will increase notes to and sales driven segment by points. a third in our and Thank XXX by prior everyone. prior comp mid-single-digit a detailed quarter by a single-digit of to company good segment Nuuly's increase third $X.X sales Retail reduced and People. sales at driven segment by the comp and grew in sales positive I in partially comp digital million. approximately discussing by that to due Wholesale in my versus company comparable decline quarter, sales results the increase growth subscribers of of comp. decline record channel $XX sales decrease Nuuly billion, robust foreign store was offset were segment currency segment increases commentary sales

in profit last were Although than last operating low the to profits sales the each brands increased was were quarter. had exceptionally operating and rates quarter. markdown because largely year at the all Markdowns due decline were categories. year brand in excess positive, certain declined inventory markdowns The because during in higher

inventory to from will reduction will rate rate deferred. elevated this year-over-year quarter Although low inventory levels, increased show versus increase reduction commentary. and QX. point increased inventory slight FY The delivered brand represents each in believe to the strong The a year. the incremental the versus to further Urban receipts miss brand second rate performance versus than in Urban alignment, markdown clear, improve product originally The to to due in to mostly selling This significantly year a due continue brand's later quarter. environment. compared Free inventory has planned Each the earlier fiscal XX we'll FY Anthropologie in a and when increase sales in the inventory promotional markdown season third and to the brand I hard the the in costs, a of excess markdowns People The versus North XX% in improve more end brand each only most improvement brand rate. 'XX relationships. prior discuss 'XX, my has 'XX, increase recorded we rate inventory America a increased XX% Outfitters categories. markdown execution Total inventory their and performance and inventory is markdown their higher a throughout to of the with by holiday highly deploy sales Outfitters XX% its most brand prior worked on slower certain

We variance positive. towards was fiscal by the performance position to sales IMU In year are end line QX, last with working the inventory the our of in year. being slightly

supply inbound chain transportation benefits expenses, we and network the began internal progressed, impact As and a of more initiatives. the quarter the sourcing to of reliable lower see

a we compared prior be As currently the favorable result, year. fourth in quarter to IMU could the believe nicely that

last a the in of to celebrate cater the in to into comp the Anthropologie beyond. customer's starting intentionally brought occasions When is customer these to in Group. their and earlier fiscal all they and digital was with comps We would multiple in the more up compared to across receipts sales parts distorted range well remain segment further much team each positive Fourth her delivered comps. remain casual consistent fashion. dressed-up wane seen in and desire categories lifestyle, choosing like jackets responding for QX. have going fiscal for comps and out or believe and high QX with quarter. is more as to The pants, get the newness interest brand trends brand it's shoes 'XX, and dress month increase holiday brand versatile that to whether single-digit heels. The delivered category, with returning nicely office. They Anthropologie dresses, are is more by the consistent. by difficult, the now to driven comp remains for 'XX in assortment. the in versus that 'XX By life. team's Home apparel store This optimistic the decorating apparel, continue positive delivered but have The and will compelling campaigns to also details teams entertaining home. incredibly believe there gaining could double-digit is we strategy target to the XX% younger both This first for Anthropologie segment impressive retail other against slightly quarter younger The of more true home execution during quarter. traction. an XX, improvement are fiscal the is customer, provide retail home under of second attracted This create and comparisons worked Marketing collaboratively more quarter and brand comps and guests deliver results. creative categories Anthropologie lean year in positive items brand, and accessories outperforming customers. age mostly mid- to that into consumer produce comps opportunity successfully QX. still fashion new, The in I

remain brand's customers holiday about performance by season. increased for New the We impressive optimistic an the XX%. in quarter the

were the segment an I Retail People Now will segment Free with the year. produced again, month to your achieving by Retail Group. X% sales People quarter. comp double-digit in Free team Retail call was store the channel, a comp comps consistent while the gain by driven attention growth last fairly versus strong in digital were comp quarter, Once segment flat.

top brand of and growth delivering Movement. across segment outstanding the During multiyear strength Retail delivered major categories quarter, FP The the quarter, a all Movement growth very in brand comparison. FP strong apparel XX% another achieved accessories, on with particular

are strength X% in the Group, a third continue driven New Wholesale quarter. accounts, People brand. in believe to existing and could partners. planning segment in exceed quarter, which expectations, during similar to we We segment delivered holiday partners into sales look Early Movement Retail for quarter and remain by partially store stores growth performance QX department People by weakness People conservatively. will the department of positive in account more brand's orders decline trends segment well fourth continued Wholesale the next Free The offset decrease year the our store Free the future for Free specialty the as third bodes and believe the

would we channels. increase remain on are fourth inventory reducing than Free profit meaningfully sales the planning like, we Additionally, wholesale on The significantly closeout inventory weigh higher levels rate closeout planned in People will quarter. through wholesale our and in

delivered Now environment converting in have they QX. discretionary in North changed an to a moving Urban shopping and brand, Outfitters is performance on customer macro less result This of comp a rate. was negative shopping are digital negative a America Outfitters UO's to the sales. the having income. do are visit, impact on They when outsized and negative behaviors reduced free due lower store comp due they America to X% at which segment customer. the comp Urban North Retail We in believe disappointing double-digit

the some for macro inventory we distortion, also may all Urban we can our remain marketing While period, We product environment we for management believe presentation, know have challenging room execute for know customer improvement. and the better.

levels as than higher North Lastly, America noted, would inventory like. we in are

deliver As XX% market the to we a excess than strong continues quarter, We of remarkably clear comps more Retail a comp will to delivering the levels segment in exceptionally levels traffic environment through for difficult position believe continue gaining quarter categories. the contrast, inventory note due Reg were retail America QX do result, getting is major and for comps fourth brand a promotional more UO segment in all total and in In in quarter. the EU Customer perform macro that need QX. Europe in inventory we to brand be well, sales can stores, record the in better are to although the to was believe positive share. is price positive inflation. North

increased the Outfitters brand QX America's potentially Financial Chief brand, the look with could negatively if and deliver inflation remains below Urban results call the consistent As at turn results. North the to QX Urban we our over for Officer. EU Outfitters I now will consumer, impacting QX's performance with global the Melanie,

Melanie Marein-Efron

believe comp Frank, Thank year plans, full quarter our low and and on on could positive 'XX financial sales for the discuss register performance. we I our current fourth you, good will single-digit the fiscal URBN Based segment afternoon, sales thoughts fourth quarter. everyone. Retail

lower likely sales our to growth be segments offset Our Nuuly in Wholesale the partially retail segment. and is in by

believe growth single-digit impact points. quarter, sales basis we this by total similar approximately foreign Additionally, in negatively sales result to the Together, in range. XXX third would exchange could growth total company low the

peak sales to fourth fourth could to on due gross could part current supply quarter gross on a believe year, markdowns approximately profit favorability could to gross fourth fuel to year. deleverage the and and we decline Moving year particularly reduce profit rates. chain in delivery by the We compared higher higher rates than Based the merchandise surcharges basis prior costs IMU, be prior points primarily that be at resulting expense offset the in inventory in quarter levels, versus contribute our believe could margins XX Urban quarter profit margin. by brand. lower in margin margins plan, as Higher carrier decline needed Outfitters from to flat last

we to quarter. in and of year costs, Moving selling higher to categories. our similar as inventory line growth volatile resulting the end in the past plans inventory to has sales growth with planned low performance on receipt for sales inbound Inventory receipts current versus Based sales the SG&A that quarter remained a prior chain certain at year from protect the SG&A. believe will quarter fourth would excess range. We growth increased and against supply our single-digit for due our elevated a slower fourth of increase costs freight rate believe expectations, sales product earlier

fourth We primarily increased approximately and capacity effective to The $XXX fulfillment quarter the the rate to 'XX. at distribution expenditures for planning the full XX% related tax million. are approximately new planned and is of year providing be our openings. year fiscal currently fiscal are and spending store XX% for Capital for

XX Lastly, quarter, XX open stores we new closing are planning while stores. the in to

People number store includes four new new stores this quarter. Our Free Movement

is obligation company a As disclaims the foregoing our current a but constitute reflection a to any forecast, simply The does update forward-looking not of reminder, statements. views.

the pleased to I back turn Now to Dick. call am

Richard Hayne

overcome concludes I us partners chain shareholders prepared supply I world turn service for around and in creativity. Frank XX,XXX shared over now and support. their you, and extra the creative over I questions. brand, finally, thank Thank hard and leaders. our Melanie. their past effort And also their our disruptions numerous remarks. dedication That our will years. work, many the the continued thank we our worldwide our for two your I thank amazing the call I thank for helping interest for faced associates

Operator

[Operator Instructions].

Morgan first the with Greenberger comes Kimberly of line Our from question Stanley.

Kimberly Greenberger

Really question. to from Thank the into just downs and appreciate wanted Great. you take Okay. and you third so year. next quarter the taking a glimpse much. Dick, I and step ups fourth back

had I'm do think would divisions, And this You've lapping an it team about the the that about to hear seem, side year and that go had division. you excellent of interested year, opportunities, next -- both on Anthropologie are such coin you the at Free just how Outfitters People Urban -- into just XXXX does how year? how other having the

what -- Thank opportunities If see year? next outlook brand just big Urban are do bottom And think that you for biggest as you margin, look could top line, maybe Or year? your you talk you. do about opportunity the picture we into for line? next

Richard Hayne

the statements. we've as year. said the and or you AOV. I the questions. think we're And of than different 'XX, largely year, a be I almost by for question increases impacted of a all during much Sure. AUR will very say prepared 'XX, Kimberly, driven 'XX, FY thank year should very on were sales by negatively freight in whole times our FY couple

both FY customers the not won't be now more deflation getting new transactions AOV think inflation of be and we have in and industry, to I room there probably dramatically. don't Anthro will the going be I any AUR the quickly, environment the static. be. there's our chain, there rely largely 'XX, suggesting increasing think we'll and on have to People will brands, I I'm around the lot -- to some For think I increases, number a But and of think because that Free given prices increase supply the

to to get money hopefully going be new more we customers on are And numbers in greater customers. those this spending we marketing we year. will convert So did than

right, the has You're Outfitters significant brand Urban opportunities.

I think a of that we've made couple mistakes.

we that think should prices probably raised we than have. more our a little I

I more And customer offer when she promotions. buying that. clear her us loud telling think is that she's the and like doesn't we

group Now a but who really is inflation I is climate little result particular that mistake I that's the our on that, part, also it's them think and a hurting bit. more economically challenged customer bit think a macro a of with quite

had So Outfitters notion Urban the elevated 'XX. opening And items we prices that sharp bit I a at back also go little we clearly whole will I a call but of in price what with have price we think more offer sharper points offer are assortments in prices points, FY value. that where high-low

can think you and that, call I on So outline. but go that would anybody like, an I think that the gives probably on and much longer than on on I

Operator

question. apologize Kimberly Thank you. it's our for Thank Greenberger. standby you. I next And Please

line comes from Lorraine Bank question America. of of the with Hutchinson next Our

line Your is open.

Lorraine Hutchinson

on you is to Thank wanted I just answer quantify gross without you. to where Thank Urban necessarily your strategies you versus Can to levels? question AUR. margin? around that you. if pre-pandemic And have the that reducing the follow reduce Kimberly's up

Richard Hayne

but front Urban close, as is And me, have Lorraine, I up in that a we -- it think of but say, number points to ones. to exact more probably the America opening again, I across sell, to That's plan, according board, more many believe North say I of don't items brand the price don't X%. done. want we prices but in AUR the was raise should is about wasn't -- it believe save it close some didn't I the was the have than to I necessarily pre items of -- [indiscernible] we I pretty

of for bringing we that think I some not expect plan right up when doing are any in So we we FY prices 'XX, plan I actually categories, what the much now. will down but that versus

Frank Conforti

This is Frank.

both add the brands. have to three Lorraine's sort quarter relates Just trend, of as honestly, the we've IMU and Kimberly to question to all we some improvement third improving talked for next in here of and the slight of and an a it year about some that One, the and in chain, positives due tailwind. we IMU be that positive speed believe the continue in tailwind And and we've a fourth quarter. had into year. a should of that as to next should improvements significant well to part nice in this hoping the the some is We're in be cost continue as to going, supply nice

also I want talk about just rates. the Secondarily, markdown to

our lag getting chain. to inventory As to markdown a lower again, we're even supply, rates due of of faster and help that should inventory and with itself our improved sales probably turn, year, driving rates. and supply be in next That adjusting can more sales in believing line

with fashion knock the just inventory third. improvement having inventory dealing have up significant much quarter markdown second to and notable We have So inventory. And through excess leaders third to going is that in quarter think that the less obviously excess entering leaner reliance the to from from year 'XX right make we're on difficulty some improvement then and one other on part with fiscal go the to to of full position to we've inventory. made in is TAM getting hopefully fourth our wood, markdown

just Outfitters not URBN all but for the into head we of as positive, be year. brand, next should think, I for things, those of both So Urban

Richard Hayne

The at year, update And XX%. actually the Urban AUR an up prior the almost on Lorraine was and Kimberly both, AUR. just

not seem and I the can -- than more on the think when so than like afford think a X%, when it's top -- you XX%, more X% which they a customer but see compounding want. And of of effect might lot, of

Operator

question. next Please our you. standby Thank for

Our Barclays. from next of Adrienne line question Yih comes the with

Your line open. is

Adrienne Yih

is very Yes, much. question on thank inventory. you My

was much it's are. sheet up not and assessment? in all into transit And look that about comp. double specifically, QX when of into But the them. for XX%. How XX%, double but think I'm transit? And follow a the two separate forward to down that look inventory and about if forward that inventory Wholesale, up in and we portion, it's your Retail for I I for -- want trying your Retail fair guess to up QX balance to we ending when Wholesale. should impact ability Is go on digit, digit, then I just on of

Frank Conforti

was Yes. and just pieces from to Adrienne, here. a step I in-transit what back the wasn't guess, comp of what take here

think Retail negative year a the is of segment sales and and crux next I for both we to inventory positive question year. of could your Wholesale, certainly manage drive in the half first the

inventory still channels drive you categories both did certain we negative and and -- brands. at of be inventory some in think being each excess sales the think positive our I could as I in have are classes

Richard Hayne

I And positive want careful we inventory I believe comps. and said what absolutely is while just have to could still correct have just that Frank negative here, be

the stores look a concerned this been to the need units be Retail the of full. in versus to make a knows, units AUR, the stores anybody for business aware of number -- have and you that's certain very We price also the while in as

very merchants in look Retail, -- and to units. the closely having cost core So they're only now in are not the dealing merchants

Adrienne Yih

or does Okay. flattish, out And traffic, flat that to trying conversion is expect figure I my AUR to flattish mall be traffic I'm was, units guess do -- just so and you negative, was if to be effectively mall follow-up are down. higher?

fill? the conversion? to it up, it has go Is traffic Is So what's how footfall -- with back right?

Frank Conforti

right? will macro enter customers I in wants And stores, facing consumer, good their think that net and think we're have environment right customer now at going been traffic, And be to have I always holiday Anthropologie we always then want whatever inventory to look the some of it opportunity acquisition, a shop for is And to and into channel increased they to is Whether new jobs. it's when about our next we business. there drive customer work happy momentum total. right and as there there's in that that we traffic But to the we or level our at and now, their year. Free continue the look forward now. with as serve drive momentum bases. us, digital to certainly, has year, we look we new both different doing next People we and into believe Obviously, going different feel like is execution of year the right next a that transactions them cleaner brand Urban both the

continue to retail traffic think customer [indiscernible] our So with to about the drive tailwind AUR may year, I both to is driving positive we're not growth be as big of job how or year. a as thinking it stores this was next growing

Richard Hayne

and And traffic excellent as brand brands both I Anthropologie up flat a the look nice had at take a and that in to point, whereas think that flat Free put traffic comps basically difference store Anthropologie store can see the result the People the the Yes. has you stores Free and and store People comps.

they through grow comps digital. However, the X% and all

store that's I it's necessary don't -- I executing think because So wow, -- But and great. necessarily we're need up in don't to traffic order it's I to malls think better think necessary the it happens drive in don't comps. that we functions. it If a little happens go a nice we're

Operator

for Thank standby next you. Please our question.

Our JPMorgan. next question comes from the Matthew line Boss with of

is line Your open.

Matthew Boss

thanks. Great,

then, about SG&A this trends to current that next could on cited spending drive that Or you overall expense front, elaborate best how dollar maybe just just in you're holiday to sales? investments view next of you consumer think November, could relative Dick, on the growth on selling seeing year elaborate Frank, So the to season? you your And sales year?

Richard Hayne

Sure, Matt, pleased that. to do

If the single-digit high are for performance currently at Retail by segment comps you brand, positive. look quarter-to-date Anthropologie

Outfitters, Urban quarter November currently low segment on the put end of a together they're People, strong believe just mid-single-digit positive these comp basically double-digit is Retail the Free For This we high in comp. low the When the of running negative. cusp for is And all what will you positive digits. single-digit with.

So we a so the XX did slightly softer in see sales. November of or days first

well. people a prior sure it inventory. attributing customers an saw reported think be is because media that, we're have won't of around shopping it saw the -- And strength when early and lot any as year's we enough of to I of Christmas the awful we there there's number not

seemed of holiday everybody the consumer their that of what weeks. there. believe fact in the year. first And We there's be aware have that gifts don't that this is quite plenty to will like think purchased out the We so doing of coming support it And inventory big normally order Monday promotional for of that they're events waiting in and carts, and Friday Cyber for make product being Friday on Monday. amounts Black purchases. put in see that, To their to occur this is probably waiting couple we record next

based the holiday the stores It it's on believe serving. to blood the last year, to more that will think be not bath. be will don't but than overall, be more we promotional -- it the of customers is total that stores and likely are going So be type I a

Melanie Marein-Efron

this Matt, Melanie. is

Right wanted year. now, take question our investments. year's next to budget your currently in the of next for about Just process middle we're

yet. to manage to a finalizing number really still say year. will I But work that hard we quite sales growth and SG&A we're closer next expense can't give So I plans, you

tuned March. in stay So

Operator

next Please for you. our standby question. Thank

with comes Citi. from line the next Our Paul question Lejuez of

open. Your line is

Paul Lejuez

Thanks guys.

if then Just say but in follow-ups. can that of all inventory, give managing a first just it versus did half I last, curious if three you of missed slowdown that And saw, next quarter. across any units you couple I was even this then suburban of And November The off you in curious brands? how sorry quick mall if mall urban year? you're the us performance sense was versus

Richard Hayne

now to passed say was And are -- November detectable, brands. slowdown have would slight. but it but observe we -- The we want our with and all very Sure, Paul. that has performing three slight, -- and right did slight I it since nicely. slowdown emphasize a sales I

very stores units our As merchants size And terms at ago, in available was year's far to stores, still we units. though to our how are of we than retail very opening saying, those a but as they this in next five stores. full smaller and four the of those or the that store when because retail sensitive about years don't customers fill to the concerned are kind board a have we is are prices prices even there's of across solely, business be did take that of number three in the of increase if units, aware buy look to I have or

just that can't retail It's So that that's of dollars. fewer the we equation. into to more factor do we and business parts consideration. is the That say not take to fewer one of a that, that with say units have is to

Operator

Thank standby next for question. you. our Please

Our Telsey next the Dana line question comes Telsey Group. from with of

line is Your open.

Dana Telsey

occasion between you difference softer that the the highlight the terms brands. in about by cozy by think brand? you in in as of performance, each brand? Dick, the frame way Hi any favor it you. everyone. the channel would it intimates casual some digital, Or then Thank dressing? stores performance in of how seemed difference you'd different and was like And evening, of Good Is

Richard Hayne

brand my say table me I'm Sure, under kick on groups that to something Dana. the going I'll rely do correct. if the but isn't best, I to

in channel As both double-digit channels. And brand, differences concerned, they very were as similar, the Anthropologie were in far actually. are the comps

or well. say was they're that apparel, out little it doing going a year by but that good. because I'd this their as So incredibly when was what And in largely than deemphasized intimates was was in that at "apparel" look so category, because softer they classify that loungewear they you

So they I there, think at that outperformed I did look I store the People on earlier, business, purpose. very digital intimates I the If Free business. business I said, don't -- as did well. think -- And the the

Melanie Marein-Efron

It's improved.

react to customer to every from business coming the of perspective Our improved launch more perspective has a consistently intimate quarter fashion how and into intimate. a off

Richard Hayne

well. consider Okay. Well, would I that's what very

And in performed that both in their was you. intimates category. in Outfitters down. brand, actually, channels both Urban particular that thank they best So the case, But similar were

don't there's to from what a So But theme you're consistent I don't that. going draw all I there. think know

Operator

Thank question. you. Please for our next standby

line the comes with from Janet question Our of JKR. next Kloppenburg

line Your is open.

Janet Kloppenburg

business. couple positioned Hi when And on the standpoint, should assortments we through I What much. turn you then plan It pricing nicely inflection in that I least quarter. there, upper-end in at everybody, questions softness a we've had evolving. a about inventory third a might would And will see be the and way Outfitters. about nice your And pretty Anthropologies have got the thinking inflection Maybe like strategy thinks just team could and an of some that the furniture about result. they is from business be? Urban outlook seen a merchandising about there? the congratulations a the seems the there? lot. talk you're continued you've help wondering the execution so how tracking in on was know place I you been an Thanks when how And feel

Richard Hayne

ask a Sure, closer I. that is then general, shot business Tricia to much about than Janet. it make doing briefly In furniture and talk Again, quite she's well. because the Anthropologie I'll

that whole look that in Online, I give would, a website And by I or we and get that. look sales both Now online. that promotional assume were are to they say renovating interested about new than than I a midyear think, look, When other redoing would the last and And little Outfitters. bit what with little will that, But the Urban we're a you're quite bit hope they more I our you at are merchandising, talking doing. strong we're to after year. in-store that.

do items. And us. there's so styles depth that's of fewer more to far to the And the the we in done things with better attention plenty taking store available store have we're As imagery the concerned, have items, as styles, and ones think the planning alpha available. is to more draw are that of some that are what we behind out with also done the just

will And you still early I think so start in see season. changes, and the should that

Tricia Smith

would the home Anthropologie Janet, business. And I on add

head the we're our benefit, we're to QX think, shorter But we as single-digit think nice of the into nice transit and Black high promotionality I able some price Friday. significantly. as I demand getting demand also great pretty lessen as times. demand backorders ship double-digit in And and well and

consistent. line. our order remains doing demand we are So net as And now quite time shortening trend our well is shipping back out and

Melanie Marein-Efron

I big react continued outsiders evolution they to we add think being trend the urban keep what is -- also the the is and to Urban's trend a I group. see. spring to The speed the key of into to the a customer need of going want can in success will be market to to season, customers up Urban fast be going very to to able that change think them with I

Operator

you. question. next standby for Thank our Please

with question the next Our from comes of UBS. line Jay Sole

Your is open. line

Jay Sole

so Dick, elaborate what category Great. it you much. be now? right Thank to on denim seeing would in you're the possible

Richard Hayne

elaborate can it. on I Sure.

the we For fourth most downtrending has denim of think been the year, that into continue the quarter. will prior some from years. And

year. go where denim However, about I think excited might next we're all pretty

denim with business the a seen in done will in Free guess, numbers strong. go for into, have four And extremely that little last next in nothing a denim you'd what going denim they've but five so I positive denim have we I bit up And years, their And denim. Anthropologie dressier business that's the a year call amazing -- Outfitters. category People years. Urban In their by hope comp -- comp

pleased very we're that. with So

Operator

next you. for our standby Thank question. Please

Marni final of comes from Our Retail Tracker. question Shapiro, The line the

line open. Your is

Marni Shapiro

and into you, feel curious, forgot asking I looked of I walking fashion, I'm the with And the front know I to way, or you buying two was there of just fashionable to the on QX assortment guess picking or QX, you're I in store her watching of I them, to inventory much dig And QX, quarters pressure very on less she the the like week, more in still than the buying it And Obviously, and the everyone is there Urban. there's ago the but would coming ago. customer, and do more bit right is for. customer is Entering different. in for there? the back a the to She's different. going store deem understand a in guys. best it's very wanted luck is you quarter But looked holiday. this customer guess, I'm there Thank not promotions. case a was she the there? price not this But even economy it congratulations, buy want felt holding obviously ending pressuring I fashion how see that even pressure. clear, but little site fashion I what the frequently under and I is

Richard Hayne

Okay, get Marni. I to How're you. a pass it shot to you. and talk she'll will it correct take Nice to at answer. probably the Sheila, over

Marni Shapiro

Thank you.

Richard Hayne

the spend, believe see less we What the lot them than government environment gave with the we it's income for a macro less them, have year disposable money. Urban prior is certainly when to tough customer of a certainly discretionary that they and

pulling back more we one that's you the were But only going thing them thing. see So on. If than would expect. that

and would say responding those the to are to seem And strongly enough to they items. do that believe We that we not fashion how I is be having fashion there I'm see to very partially our of responding presenting customer assortment led we're So problem are it's them. assortment. the items.

Now can that of she could doesn't a be that be just that problem -- many. macro our problem or need

would anything three, to want combination which those -- it that guess be -- Or me of it's about I this to time macro we weekly it, And you every guess, where daily. a is down assortment? for the on we add I a issue? very not the come you three is important. hazard least to basis, talk even it have and a a do we So a of Is if at the difficult is Is Sheila, is it ourselves question a it? price it ask daily at architecture? probably most

Sheila Harrington

obviously, we controllable No. we our merchants even assortment as of as XXX% on take aspect the an it most to XXX%. not take say, it's I take assortment that issue would believe though business. the of And we the

assortment embellishment in nice to owned can that and in wish fashion highlights feel We that There's we She's sparkle we within our a more reacting strong. definitely definitely way. key very there's do. very bottoms So more.

as -- than have and the to stronger. just [indiscernible] that Urban to changes to opportunity I quickly have trend I much go react not, we we more because as spoke So think in we ability

with some December. studying warm stores are some in fresh We ideas

So of hopefully, forward sense QX come the an of job stronger we'll some merchants indication a will help have year. do change that

Richard Hayne

Okay.

you a I I wish to Kimberly wonderful other think folks forward you got months. speaking the few in that all call. a And Thanksgiving. that that, with wronged. concludes includes Look wonderful, that Greenberger

thank and Thanksgiving. you much, nice very a So have

Operator

your this gentlemen, you Thank for participation. call. concludes and today's conference Ladies

now disconnect. may You

Urban Outfitters (URBN) 22 Nov 222023 Q3 Earnings call transcript