Urban Outfitters Inc (URBN) 2023 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Urban Outfitters, Inc. Second Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們，先生們，美好的一天，歡迎來到 Urban Outfitters, Inc. 2023 財年第二季度收益電話會議。 （操作員說明）作為提醒，本次會議正在錄製中。

I would now like to introduce Oona McCullough, Executive Director of Investor Relations. Ms. McCullough, you may begin.

我現在想介紹投資者關係執行董事 Oona McCullough。麥卡洛女士，你可以開始了。

Good afternoon, and welcome to the URBN Second Quarter Fiscal 2023 Conference Call.

下午好，歡迎參加 URBN 2023 財年第二季度電話會議。

Earlier this afternoon, the company issued a press release outlining the financial and operating results for the sixth and 3-month period ending July 31, 2022. 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 impact on the URBN's business. Given the uncertainty about the duration and extent of the virus' impact to the global retail environment, content discussed on today's call could change materially at any time.

今天下午早些時候，該公司發布了一份新聞稿，概述了截至 2022 年 7 月 31 日的第 6 個月和 3 個月期間的財務和經營業績。以下討論可能包括前瞻性陳述。此時需要注意的是，全球 COVID-19 大流行已經並將繼續對 URBN 的業務產生重大影響。鑑於病毒對全球零售環境影響的持續時間和程度的不確定性，今天電話會議上討論的內容可能隨時發生重大變化。

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.

因此，未來的結果可能與歷史實踐和結果或當前的描述、估計和建議存在重大差異。有關可能導致實際結果與預計結果產生重大差異的因素的其他信息包含在公司提交給證券交易委員會的文件中。

On today's call, you will hear from Richard Hayne, Chief Executive Officer; Frank Conforti, Co-President and COO; and Melanie Marein-Efron, Chief Financial Officer. 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.

在今天的電話會議上，您將聽到首席執行官 Richard Hayne 的講話； Frank Conforti，聯合總裁兼首席運營官；和首席財務官 Melanie Marein-Efron。之後，我們將很高興回答您的問題。有關我們季度業績的更詳細評論和今天電話會議的文本，請參閱我們的投資者關係網站 www.urbn.com。

I will now turn the call over to Dick.

我現在將把電話轉給迪克。

Thank you, Oona, and good afternoon, everyone. Today, I'll begin the call with some brief remarks regarding our second quarter results and make a few observations concerning the consumer and the macro environment.

謝謝你，Oona，大家下午好。今天，我將以一些關於我們第二季度業績的簡短評論開始電話會議，並對消費者和宏觀環境進行一些觀察。

I will then turn the call over to Frank and Melanie, who will provide more brand details, along with our thoughts about future performance. Overall, URBN delivered positive revenue growth in the second quarter against our especially strong record-breaking quarterly print last year.

然後，我會將電話轉給 Frank 和 Melanie，他們將提供更多品牌細節，以及我們對未來表現的看法。總體而言，與去年我們特別強勁的創紀錄季度印刷相比，URBN 在第二季度實現了正收入增長。

Total Retail segment comp sales increased by 1% versus Q2 last year and 24% against the same period in FY '20. Anthropologie and Free People both posted robust Retail segment comps against last year, increasing by 7% and 8%, respectively.

零售部門的總銷售額與去年第二季度相比增長了 1%，與 20 財年同期相比增長了 24%。 Anthropologie 和 Free People 均公佈了與去年相比強勁的零售部門業績，分別增長了 7% 和 8%。

The Urban brand saw Retail segment comps declined by 9%. Sales gain for Urban Europe partially offset significant weakness in North America. We believe much of the weakness was due to 3 factors: first is brand execution issues. These included inaccurate product distortion and over-assortment that led to inventory problems.

Urban 品牌的零售部門銷售額下降了 9%。 Urban Europe 的銷售增長部分抵消了北美的顯著疲軟。我們認為大部分疲軟是由於三個因素：首先是品牌執行問題。其中包括導致庫存問題的不准確的產品變形和過度分類。

Second is severe inflation, which caused the Urban customer to have less money for discretionary spending. And last is an exaggerated prior year comparison that included stimulus money that fueled demand.

其次是嚴重的通貨膨脹，導致城市客戶可自由支配的支出減少。最後是誇大的上一年比較，其中包括刺激需求的刺激資金。

Although URBN sales grew in Q2, the operating environment remained challenging and weighed on profitability. Continued high inbound freight and transportation costs drove IMU lower, while higher markdowns versus the historic low rates we achieved last year hurt MMU. The combination of these 2 factors produced a year-over-year decline in gross margins and operating profits, even though SG&A expenses were well controlled and returned to a more normalized rate. Second quarter operating income was $86 million, a 48% drop from last year's record profits, but a 10% increase versus FY '20.

儘管 URBN 的銷售額在第二季度有所增長，但經營環境仍然充滿挑戰，並對盈利能力造成壓力。持續高昂的入境貨運和運輸成本推動 IMU 走低，而與我們去年實現的歷史低點相比，更高的降價幅度損害了 MMU。這兩個因素的結合導致毛利率和營業利潤同比下降，儘管 SG&A 費用得到很好的控制並恢復到更正常的水平。第二季度營業收入為 8600 萬美元，比去年的創紀錄利潤下降了 48%，但與 20 財年相比增長了 10%。

Customer shopping behavior at our brands has bifurcated with affluence being the differentiator. Those brands with higher price points and serving a more affluent customer, in our case, Anthropologie and Free People have a customer who is able and willing to continue spending despite the current inflation level.

我們品牌的客戶購物行為已經分化，富裕是差異化因素。那些價格更高且服務於更富裕客戶的品牌，在我們的案例中，Anthropologie 和 Free People 的客戶有能力並且願意在當前通脹水平的情況下繼續消費。

[She's] demanding fashion newness and shopping to accommodate Her social calendar, choosing products tailored for going out. Demand at these 2 brands did moderate slightly from the robust pace in Q1, but both continued to record nicely positive sales throughout Q2.

[她] 要求時尚新穎和購物以適應她的社交日曆，選擇適合外出的產品。與第一季度的強勁增長相比，這兩個品牌的需求略有放緩，但在整個第二季度都繼續錄得不錯的正銷售額。

To date in August, both brands continue to perform well with Anthro posting low teen and Free People, high single-digit comps. For the Urban brand customer who is younger and less affluent, the current inflation, especially around necessities like food, rent and energy is not a mirroring convenience is economically crippling.

8 月至今，這兩個品牌繼續表現良好，Anthro 發布了低青少年和自由人，高個位數組合。對於年輕且不那麼富裕的 Urban 品牌客戶而言，當前的通貨膨脹，尤其是圍繞食品、租金和能源等必需品的通貨膨脹並沒有反映出來的便利，這在經濟上是嚴重的。

As a result, we see this customer spending much more cautiously on discretionary items and often waiting for promotions before buying. This is in stark contrast to the Anthropologie and Free People customers who are driving strong full price sales.

因此，我們看到該客戶在非必需品上的支出更加謹慎，並且經常在購買前等待促銷活動。這與推動強勁全價銷售的 Anthropologie 和 Free People 客戶形成鮮明對比。

If the current macroeconomic situation doesn't deteriorate further, we believe the customer bifurcation will continue through the entire second half. As a result, the Urban brand performance is likely to suffer versus last year and produce negative comps, while the other 2 brands could remain nicely positive.

如果當前宏觀經濟形勢不進一步惡化，我們認為客戶分化將持續整個下半年。因此，與去年相比，Urban 品牌的表現可能會受到影響並產生負面影響，而其他兩個品牌可能會保持良好的積極性。

Finally, I'm pleased to report that Nuuly, URBN's apparel rental service, continue to experience a strong positive response to its business concept and product offering in Q2. Active subscribers now exceed 90,000, a 15% increase from Q1 and a 200-plus percent jump from Q2 last year.

最後，我很高興地報告，URBN 的服裝租賃服務 Nuuly 在第二季度繼續對其業務理念和產品供應產生強烈的積極反應。活躍用戶現在超過 90,000，比第一季度增長 15%，比去年第二季度增長 200% 以上。

In addition, Nuuly was able to nicely leverage the increase in revenue from these additional subs and make excellent progress toward profitability. We look forward to welcoming our 100,000th subscriber later this year and hopefully celebrating Nuuly's first profitable quarter sometime in FY '24.

此外，Nuuly 能夠很好地利用這些額外潛艇帶來的收入增長，並在盈利方面取得了顯著進展。我們期待在今年晚些時候迎來我們的第 100,000 名訂戶，並希望在 24 財年的某個時候慶祝 Nuuly 的第一個盈利季度。

With that, I'll now turn the call over to Frank to provide more details on our performance.

有了這個，我現在將把電話轉給弗蘭克，以提供更多關於我們表現的細節。

Thank you, Dick, and good afternoon, everyone. I will begin my commentary discussing our total company Q2 results versus the prior comparable quarter, followed by some more detailed notes by brand.

謝謝你，迪克，大家下午好。我將開始我的評論，討論我們公司第二季度的總業績與上一個可比季度的比較，然後是一些更詳細的品牌說明。

Total company sales grew by 2% to a second quarter record of $1.2 billion, driven by a total Retail segment comp sales increase of 1%, a Wholesale segment sales increase of 1% and a Nuuly segment sales increase of $19 million. The growth in Retail segment comp sales was driven by low single-digit digital channel comp sales, while store comp sales were flat.

公司總銷售額增長 2%，達到第二季度創紀錄的 12 億美元，這得益於零售部門總銷售額增長 1%、批發部門銷售額增長 1% 和 Nuuly 部門銷售額增長 1900 萬美元。零售部門comp銷售額的增長是由低個位數的數字渠道comp銷售額推動的，而商店comp銷售額持平。

Wholesale segment sales growth was due to a 4% increase at Free People. Nuuly's robust increase in sales was due to a significant increase in subscribers from the prior year. As Dick noted, although sales were positive, the operating environment during the quarter was challenging.

批發部門的銷售額增長是由於 Free People 增長了 4%。 Nuuly 銷售額的強勁增長是由於訂戶比上一年顯著增加。正如迪克所指出的，儘管銷售額是積極的，但本季度的經營環境充滿挑戰。

Those challenges, coupled with exceptional performance in the prior year contributed to a lower operating profit versus a year ago. The decline in operating profit was due to higher markdowns, lower initial markups and deleverage and delivery expense.

這些挑戰，加上上一年的出色表現，導致營業利潤低於一年前。營業利潤的下降是由於更高的降價、更低的初始加價以及去槓桿和交付費用。

Markdowns were higher than last year, mainly because of the markdown rates last year at all brands were exceptionally low and because each brand had excess inventory in certain categories. Total inventory remained elevated at the end of Q2. This increase is due in part to higher inventory costs resulting from increased inbound freight costs, planned earlier receipts to protect sales against a volatile supply chain and excess slower selling product in certain categories.

降價幅度高於去年，主要是因為去年所有品牌的降價幅度都非常低，並且每個品牌在某些類別中都有多餘的庫存。總庫存在第二季度末保持高位。這一增長的部分原因是由於入庫運費增加導致庫存成本增加、計劃提前收貨以保護銷售免受供應鏈波動的影響以及某些類別中銷售速度過慢的產品。

We will have to deploy incremental markdowns throughout the third quarter to sell through this excess inventory. The Urban Outfitters brand in North America has the largest overage.

我們將不得不在整個第三季度部署增量降價銷售，以通過這些多餘的庫存進行銷售。北美的 Urban Outfitters 品牌超額使用量最大。

We are working towards our inventory position being meaningfully improved at the end of the third quarter and in line with sales performance by the end of the fiscal year. IMU was lower versus last year due to the continued impact of elevated supply chain costs. The good news is that not only do comparisons get easier in the back half of the year, we are also starting to deliver on our initiatives to improve our IMU, both of which have resulted in an improving IMU trend.

我們正在努力在第三季度末顯著改善我們的庫存狀況，並在本財年末與銷售業績保持一致。由於供應鏈成本上升的持續影響，IMU 低於去年。好消息是，不僅今年下半年比較變得更容易，我們也開始實施改進 IMU 的舉措，這兩者都導致了 IMU 趨勢的改善。

Additionally, transit times and pricing in the market are beginning to gradually improve, while it is still very early, and our transit times and costs are still significantly increased versus pre-pandemic levels. If this overall improvement continues, it could benefit not only IMU, but markdowns as well.

此外，市場中的運輸時間和定價開始逐漸改善，雖然還很早，我們的運輸時間和成本仍然比大流行前的水平顯著增加。如果這種整體改進繼續下去，它不僅可以使 IMU 受益，還可以降低降價幅度。

As many of you know, our fashion model is built in part on speed and the faster and more reliable our supply chain is, the greater opportunity gives our merchants to deliver the right fashion.

正如你們許多人所知，我們的時尚模式部分建立在速度之上，我們的供應鏈越快、越可靠，我們的商家就有更多的機會提供合適的時尚。

Delivery expense deleveraged in the quarter versus the prior year, primarily due to fuel surcharges related to the significant fuel inflation in all of our markets. We have been able to offset a portion of these surcharges with initiatives that reduce our out-of-market shipments and split shipments.

與去年同期相比，本季度的交付費用去槓桿化，主要是由於與我們所有市場的顯著燃料通脹相關的燃料附加費。我們已經能夠通過減少我們的市場外出貨量和拆分出貨量的舉措來抵消這些附加費的一部分。

I will now provide more details by brand, starting with the Anthropologie Group. The Anthropologie team delivered an impressive 7% Retail segment comp in Q2 versus the prior year. The increase in comps was driven by nicely positive store and digital comps.

我現在將按品牌提供更多詳細信息，從 Anthropologie Group 開始。與去年相比，Anthropologie 團隊在第二季度實現了令人印象深刻的 7% 零售業務。曲譜的增加是由良好的商店和數字曲譜推動的。

By category, both apparel and home delivered positive comps in the quarter. The Anthropologie brand delivered positive comps in all 3 months with May and July being the strongest. The Anthropologie consumer is still shopping and is responding well to more dressed-up categories like dresses, pants, jackets and shoes with heels.

按類別劃分，服裝和家居在本季度均實現了正增長。 Anthropologie 品牌在所有 3 個月中都取得了積極的成績，其中 5 月和 7 月是最強的。 Anthropologie 的消費者仍在購物，並且對禮服、褲子、夾克和高跟鞋等更多裝扮品類反應良好。

The execution of the team's brand strategy is having a positive impact on the women's business as they are attracting and acquiring new younger customers. Within the home category, the strength in furniture and decor demand offset weaknesses in gift and entertainment.

團隊品牌戰略的執行對女性業務產生了積極影響，因為她們正在吸引和獲取新的年輕客戶。在家居品類中，家具和裝飾需求的強勢抵消了禮品和娛樂的弱勢。

Although it is early, while product is performing well across major categories, and we remain optimistic about the brand's performance for the back half of the year. Now I will call your attention to the Free People Group. Once again, the Free People team produced a strong quarter with Retail segment comps achieving an 8% gain versus last year.

雖然時間尚早，但產品在各大品類的表現都不錯，我們對品牌下半年的表現依然持樂觀態度。現在我將提請您注意 Free People Group。再一次，Free People 團隊創造了一個強勁的季度，零售部門的銷售額與去年相比增長了 8%。

Retail segment comps were driven by double-digit growth in the digital channel, which was partially offset by a low single-digit decline in stores. Retail segment comp sales moderated as the quarter progressed, but August has accelerated from July's results.

零售部門的銷售額受到數字渠道兩位數增長的推動，但部分被商店的低個位數下降所抵消。隨著季度的進展，零售部門的銷售額有所放緩，但 8 月份的業績較 7 月份的業績有所加快。

During the quarter, the brand achieved growth across several categories with strength in accessories and apparel. The FP Movement brand delivered another outstanding quarter, growing their customer base by 34% versus last year and delivering 30% Retail segment growth on top of a very strong multiyear comparison.

在本季度，該品牌在配飾和服裝方面的實力在多個類別中實現了增長。 FP Movement 品牌又一個出色的季度，其客戶群與去年相比增長了 34%，在非常強勁的多年比較基礎上實現了 30% 的零售部門增長。

New and existing FP Movement stores continue to exceed expectations, which bodes well for a continued growth of the brand. Early fall receipts have been well received by Free People's customer, and we believe that the brand's Retail segment performance could look similar in the third quarter to the second quarter.

新的和現有的 FP Movement 門店繼續超出預期，這預示著品牌的持續增長。早秋收據受到 Free People 客戶的好評，我們相信該品牌在第三季度和第二季度的零售業務表現可能相似。

The Free People Wholesale segment delivered a 4% increase during the second quarter, driven by strength in specialty store partners, which was partially offset by weaknesses in the department store accounts.

受專賣店合作夥伴實力的推動，Free People Wholesale 部門在第二季度實現了 4% 的增長，這部分被百貨公司賬戶的疲軟所抵消。

We believe the Wholesale segment may see declines in the back half of the year due to lower sales to department store accounts. This change in sales performance, coupled with increased inventory levels could weigh on the wholesale profit rate in the second half of the year.

我們認為，由於對百貨公司賬戶的銷售額下降，批發業務可能會在下半年出現下滑。銷售業績的這種變化，加上庫存水平的增加，可能會影響下半年的批發利潤率。

Now moving on to the Urban Outfitters brand, which delivered a negative 9% Retail segment comp versus the prior year. Euros negative comp was the result of disappointing performance in North America due to double-digit negative store and digital comp sales. As Dick previously mentioned, we believe the macro environment in North America is having an outsized impact on the Urban Outfitters customer. With inflation rates not seen in over 40 years, in addition to lapping trillions of dollars in stimulus funding from the prior year, it presents a unique challenge for the UO North American customer.

現在轉向 Urban Outfitters 品牌，與去年相比，該品牌的零售部門銷售額下降了 9%。由於兩位數的負商店和數字產品銷售，北美地區的業績令人失望，導致歐元出現負增長。正如迪克之前提到的，我們認為北美的宏觀環境正在對 Urban Outfitters 客戶產生巨大影響。由於通貨膨脹率是 40 多年來未見的，除了從前一年獲得數万億美元的刺激資金外，這對 UO 北美客戶提出了獨特的挑戰。

While we know the macro environment for Urban customer may remain challenging for some period, we also know we can execute better. The brand has fashion that is working but did not distort their buys appropriately. As a result, the brand in North America will need to be more promotional to attract and convert this customer.

雖然我們知道 Urban 客戶的宏觀環境可能在一段時間內仍然充滿挑戰，但我們也知道我們可以更好地執行。該品牌的時尚正在發揮作用，但並未適當扭曲他們的購買。因此，北美的品牌將需要更多的促銷活動來吸引和轉化該客戶。

Additionally, inventory levels in North America are higher than we would like. We are focused on correcting those inventory levels, which will lead to higher markdowns for the third quarter compared to the prior year.

此外，北美的庫存水平高於我們的預期。我們專注於糾正這些庫存水平，這將導致第三季度的降價幅度高於去年。

In contrast, UO Europe continues to perform remarkably well, delivering a 13% Retail segment comp for the quarter. Customer traffic was exceptionally strong in stores, inventory levels are in a better position, and we believe the brand is gaining market share.

相比之下，UO Europe 繼續表現出色，本季度的零售業務佔比為 13%。商店的客流量異常強勁，庫存水平處於更好的位置，我們相信該品牌正在獲得市場份額。

As long as the economy does not get materially worse, we believe UO EU can continue to deliver positive Retail segment comps in the third quarter while the total Urban Outfitters brand could deliver results similar to Q2's results.

只要經濟沒有出現實質性惡化，我們相信 UO EU 可以在第三季度繼續提供積極的零售部門業績，而整個 Urban Outfitters 品牌的業績可能與第二季度的業績相似。

I will now turn the call over to Melanie, our Chief Financial Officer.

我現在將把電話轉給我們的首席財務官 Melanie。

Thank you, Frank, and good afternoon, everyone. I will discuss our thoughts on the third quarter and full fiscal year '23 financial performance.

謝謝你，弗蘭克，大家下午好。我將討論我們對第三季度和整個 23 財年財務業績的看法。

Our URBN comp sales growth trends have started out the quarter similar to our Q2 comp sales performance with low single-digit positive Retail segment comps.

我們的 URBN comp 銷售增長趨勢在本季度開始時與我們的第二季度 comp 銷售業績相似，零售部門的銷售額處於低個位數正數。

Based on our quarter-to-date performance and sales plans, we believe our URBN Retail segment comp sales could register low single digit positive for the third quarter. Our Retail segment's growth is likely to be partially offset by lower sales in our Wholesale segment.

根據我們本季度迄今為止的業績和銷售計劃，我們相信我們的 URBN 零售部門的銷售額可能會在第三季度錄得低個位數的正數。我們的零售部門的增長可能會被我們批發部門的銷售額下降部分抵消。

Together, this would result in total company sales growth in the low single-digit range. Now on to gross profit margin. Based on today's current sales performance and plan, we believe that growth profit margins could decline by more than 400 basis points for the third quarter. The decline in third quarter gross profit margins could largely be driven by higher markdown rates versus last year's exceptionally low markdown rates at all brands as well as elevated inventory levels this year.

總之，這將導致公司總銷售額增長在低個位數範圍內。現在談談毛利率。根據目前的銷售業績和計劃，我們認為第三季度的增長利潤率可能下降超過 400 個基點。第三季度毛利率的下降主要是由於降價率高於去年所有品牌的降價率非常低，以及今年庫存水平上升。

As a reminder, last year's third quarter gross margin significantly benefited from unsustainably low record markdown rates. In Q3 last year, demand was very strong, and our inventory levels could not keep pace when we experienced significant receipt shortfalls due to severe supply chain interruptions.

提醒一下，去年第三季度的毛利率顯著受益於不可持續的低創紀錄降價率。去年第三季度，需求非常強勁，當我們因嚴重的供應鏈中斷而出現嚴重的收貨短缺時，我們的庫存水平無法跟上。

Moving to SG&A. We believe SG&A growth for the third quarter will increase in the high single digits. Our planned growth in SG&A is primarily due to increased store labor costs and customer marketing acquisition costs versus the prior year. This could result in SG&A rate deleveraged versus last year, but we would expect SG&A rate as a percent of net sales to come more in line with pre-pandemic levels.

轉移到 SG&A。我們認為第三季度的 SG&A 增長將以高個位數增長。我們計劃在 SG&A 方面的增長主要是由於商店勞動力成本和客戶營銷獲取成本與去年相比有所增加。這可能導致 SG&A 利率與去年相比去槓桿化，但我們預計 SG&A 利率占淨銷售額的百分比將更符合大流行前的水平。

We are currently planning our effective tax rate to be approximately 24% for the third quarter and 27% for the full year FY '23. Capital expenditures for the fiscal year are planned at approximately $225 million. The spending is primarily related to providing increased distribution and fulfillment capacity and new store openings.

我們目前計劃第三季度的有效稅率約為 24%，23 財年全年的有效稅率約為 27%。本財年的資本支出計劃約為 2.25 億美元。支出主要與提供增加的分銷和履行能力以及新店開業有關。

Lastly, we are planning on opening approximately 37 new stores and closing approximately 15 stores during the fiscal year. Our new store number includes 12 new FP Movement stores this year. As a reminder, the foregoing does not constitute a forecast, but is simply a reflection of our current views. The company disclaims any obligation to update forward-looking statements. Now I'm pleased to turn the call back to Dick.

最後，我們計劃在本財年開設約 37 家新店並關閉約 15 家店。我們的新店鋪數量包括今年 12 家新的 FP Movement 店鋪。提醒一下，上述內容並不構成預測，而只是我們當前觀點的反映。公司不承擔更新前瞻性陳述的任何義務。現在我很高興將電話轉回給迪克。

Thank you, Frank, and thank you, Melanie. That concludes our prepared remarks. I thank our brand, creative and shared service leaders. I also thank our 23,000 associates worldwide for their hard work, their dedication and amazing creativity. I thank our many partners around the world for their extra effort in helping us overcome the numerous supply chain disruptions we faced. And finally, I thank our shareholders for their continued interest and support.

謝謝你，弗蘭克，謝謝你，梅蘭妮。我們準備好的發言到此結束。我感謝我們的品牌、創意和共享服務領導者。我還要感謝我們全球 23,000 名員工的辛勤工作、奉獻精神和驚人的創造力。我感謝我們在世界各地的許多合作夥伴付出了額外的努力，幫助我們克服了我們面臨的眾多供應鏈中斷問題。最後，我感謝我們的股東一直以來的關注和支持。

I will now turn the call over to you for your questions. As a reminder, please limit your questions to one per caller.

我現在將把電話轉給您詢問您的問題。提醒一下，請將您的問題限制在每位來電者一個。

(Operator Instructions) Our first question will come from Kimberly Greenberger with Morgan Stanley.

（操作員說明）我們的第一個問題將來自摩根士丹利的 Kimberly Greenberger。

Dick, I wanted to double-click on the comments that you talked about with regard to inventory -- that during the second quarter, there were certain inventory distortions that were not correct. So it sounds like at this point in time, your assessment is that inventory is maybe too high and at least during the second quarter was not properly distorted.

迪克，我想雙擊你談到的關於庫存的評論——在第二季度，存在某些不正確的庫存扭曲。所以聽起來在這個時間點，你的評估是庫存可能太高了，至少在第二季度沒有適當扭曲。

Could you just elaborate on that and let me know if I've come to the right conclusion on that? And then what sort of adjustments have you been able to make to either your third quarter buys or your fourth quarter buys to address what you saw in the second quarter?

您能否詳細說明一下，讓我知道我是否得出了正確的結論？然後，您能夠對第三季度的購買或第四季度的購買進行哪些調整，以解決您在第二季度看到的情況？

Okay, Kimberly. I'm going to ask Frank to take that. I think you're confusing a little bit. I talked about inventory with Urban and he's going to talk about inventory overall.

好的，金伯利。我要請弗蘭克接受。我覺得你有點困惑。我與 Urban 討論了庫存，他將討論整體庫存。

Kimberly, thanks for the question. So first, our increased inventory is due in part to the cost of inventory. I think this is most easily illustrated by looking at our Retail segment inventory, which is up 36% at cost with units only up 16%.

金伯利，謝謝你的問題。首先，我們增加的庫存部分是由於庫存成本。我認為通過查看我們的零售部門庫存最容易說明這一點，其成本上漲了 36%，而單位僅上漲了 16%。

And what's driving this is, obviously, the increased cost of the supply chain as well as other input costs as well as product mix. So you think about things like [dressier] categories working, that's also impacting the product mix and our cost increase there.

很明顯，造成這種情況的原因是供應鏈成本的增加以及其他投入成本和產品組合。因此，您考慮諸如 [dressier] 類別之類的事情，這也會影響產品組合和我們在那裡的成本增加。

Second is early receipts. We intentionally brought inventory in earlier due to the previously unreliable supply chain. Fortunately, right now, that supply chain has shown improvements over the last 30 to 60 days. So hopefully, our need to continually do this could subside as we see further stability there.

二是早收。由於之前的供應鏈不可靠，我們有意提前引入庫存。幸運的是，現在，該供應鏈在過去 30 到 60 天內已顯示出改善。因此，希望隨著我們看到那裡的進一步穩定，我們持續這樣做的需求可能會消退。

That improvement in the supply chain has also contributed to some of our inventory receipts coming in earlier than we anticipated. So one, you've got cost; two, you've got early receipts. And lastly, you are correct. We do have more inventory than we would want in certain areas. This is primarily at the Urban Outfitters brand in North America as well as our Wholesale segment.

供應鏈的改善也導致我們的一些庫存收據比我們預期的要早。所以一，你有成本；第二，你有早期的收據。最後，你是對的。在某些地區，我們確實擁有比我們想要的更多的庫存。這主要是在北美的 Urban Outfitters 品牌以及我們的批發部門。

We are absolutely committed to clearing through our excess inventory as quickly as possible. We think that we'll be in a much improved inventory position by the end of the third quarter. I think you could see our Retail segment comp be improved by over 20 points by the end of the third quarter and more in line with sales by the time we get into the fourth quarter.

我們絕對致力於盡快清理多餘的庫存。我們認為到第三季度末我們的庫存狀況將大大改善。我想你可以看到我們的零售部門在第三季度末提高了 20 多點，並且在我們進入第四季度時更符合銷售額。

One moment for our next question. That will come from the line of Adrienne Yih with Barclays.

我們下一個問題的片刻。這將來自巴克萊銀行的 Adrienne Yih。

Dick, my first question is from a fashion perspective, we were earlier in sort of a fashion shift as we were coming out of COVID. I'm just wondering, when we're in sort of this like demand disruptive environment, does fashion still matter as much?

迪克，我的第一個問題是從時尚的角度來看，當我們從 COVID 中走出來時，我們更早地處於某種時尚轉變中。我只是想知道，當我們處於這種需求破壞性的環境中時，時尚還有那麼重要嗎？

And I know what you're going to say, but I'm just wondering if it gets muted some of the kind of the fashion strength? And then for Frank, wondering if you can talk about the recent increases in cotton? It seems like it's coming from a U.S. drought, shortage and wondering how that compares to 2010. Should we be worried about that?

而且我知道你要說什麼，但我只是想知道它是否會因為某種時尚力量而減弱？然後對於弗蘭克，想知道你是否可以談談最近棉花的增長？似乎它來自美國的干旱、短缺和想知道與 2010 年相比如何。我們應該擔心嗎？

Okay, Adrienne. I think like I said, we -- our view of the customer right now is that there's a bifurcation within the customer groups. And the bifurcation is basically along either wealth or income, however you want to define that. But the folks are in the top third of that group. We really haven't seen much difference in their behavior.

好的，阿德里安。我想就像我說的那樣，我們現在對客戶的看法是客戶群體內部存在分歧。分歧基本上是財富或收入，但是你想定義它。但這些人是該組的前三分之一。我們真的沒有看到他們的行為有太大的不同。

They're continuing to buy. They're continuing to buy fashion. I would say that fashion is still extremely important to them and extremely important to driving their purchases and price seems to be secondary. On the other hand, the bottom third and -- we don't have a lot of those folks, but we have some, particularly in the Urban brand not because they're going to be in the bottom third forever, but it just happens that they're very young.

他們繼續購買。他們繼續購買時裝。我想說時尚對他們來說仍然非常重要，對於推動他們的購買也非常重要，而價格似乎是次要的。另一方面，倒數第三，而且——我們沒有很多這樣的人，但我們有一些，特別是在 Urban 品牌中，不是因為他們將永遠處於倒數第三，但它只是發生了他們很年輕。

And as a result, they have just started out in life and they're earning much less. These folks have really been impacted by inflation. And so in many cases, because rent is up so much, and they're struggling to pay that. They're struggling to buy fuel for their car on their incomes.

結果，他們才剛剛開始生活，他們的收入要少得多。這些人確實受到了通貨膨脹的影響。所以在很多情況下，因為租金上漲了很多，他們正在努力支付。他們正努力用自己的收入為他們的汽車購買燃料。

They really don't have a choice. There -- the amount of the discretionary income that they have left over after those necessities is down considerably. So they have to make some very hard choices. And in that case, while fashion is still important, I would say you're right, it's less important than it has been in the past.

他們真的別無選擇。那裡——他們在這些必需品之後剩下的可自由支配收入的數量大大減少了。所以他們必須做出一些非常艱難的選擇。在這種情況下，雖然時尚仍然很重要，但我會說你是對的，它不像過去那麼重要。

And Adrienne, on your question on cotton, that's not one of the biggest drivers that we're facing right now. And Kimberly, just to follow up on your question as what we're doing about our inventory. Obviously, as Melanie mentioned in her prepared remarks, we're planning for a higher markdown rate in order to clear through inventory. And then, of course, we've adjusted our buys based on our current sales trends and that affects receipts going forward.

Adrienne，關於你關於棉花的問題，這不是我們目前面臨的最大驅動因素之一。還有金佰利，只是為了跟進您的問題，我們正在對我們的庫存做些什麼。顯然，正如 Melanie 在她準備好的評論中提到的那樣，我們正在計劃提高降價率，以便清理庫存。然後，當然，我們已經根據我們當前的銷售趨勢調整了我們的購買，這會影響未來的收據。

Yes, Adrienne, I don't think we're seeing any problem procuring cotton. And we're trying to buy as little as almost none from China.

是的，Adrienne，我認為我們在採購棉花方面沒有看到任何問題。我們正試圖從中國購買盡可能少的產品。

One moment for our next question. And that will come from the line of Paul Lejuez with Citi.

我們下一個問題的片刻。這將來自花旗的 Paul Lejuez。

I'm curious if you can break down the comp metrics for each of the brand, how much of the comps were driven by ticket versus transactions.

我很好奇你是否可以分解每個品牌的補償指標，有多少補償是由門票和交易驅動的。

And Dick, curious how you're thinking about the spring from an assortment perspective. If we're looking at a weaker consumer, particularly on the low end, does it make you adjust the assortment in terms of opening price points? And how does that differ by brand?

還有迪克，很好奇你是如何從分類的角度看待春天的。如果我們看到的是較弱的消費者，尤其是低端消費者，是否會讓您根據開盤價調整產品組合？不同品牌有何不同？

So Paul, as it relates to the comp metrics, obviously, they're very different by brand right now. I didn't know if maybe Tricia and Sheila wanted just to talk a little bit about what's driving that on a, I guess, on a Retail segment basis for the second quarter -- the third quarter, sorry.

所以保羅，因為它涉及到補償指標，很明顯，它們現在在品牌上是非常不同的。我不知道 Tricia 和 Sheila 是否只是想談談是什麼推動了這一點，我猜是在第二季度的零售部門——第三季度，對不起。

Yes. I can speak to Anthropologie. Our -- both our AUR and AOV are both up. Our average order is up 8%, and our AUR is up 12%. Our ticket is flat and our UPTs are flat, and we're seeing a slight improvement in conversion. So definitely seeing some increase in both our AUR and AOV.

是的。我可以和 Anthropologie 談談。我們的 - 我們的 AUR 和 AOV 都已啟動。我們的平均訂單增長了 8%，我們的 AUR 增長了 12%。我們的門票持平，UPT 持平，我們看到轉化率略有改善。所以肯定會看到我們的 AUR 和 AOV 都有所增加。

I think for Free People brands, the metrics are similar to Anthropologie, where AOV and AUR are nicely up. I think the metric in Urban is much more challenged in terms of our AOV being down to last year, but still being up versus FY '20 and where conversion is somewhat in line, slightly down versus history.

我認為對於 Free People 品牌，指標類似於 Anthropologie，其中 AOV 和 AUR 的表現很好。我認為 Urban 的指標面臨更大的挑戰，因為我們的 AOV 下降到去年，但與 20 財年相比仍然上升，並且轉換率在一定程度上符合歷史，與歷史相比略有下降。

Okay. And Paul, as to spring, accuse me of being the ever often this retailer and guilty as charged. But we see a lot of fashion, and we are very bullish about spring. I think we are hopeful that the Urban brand is going to be able to get back to positive comps in spring.

好的。保羅，至於春天，指責我經常是這個零售商並且被指控有罪。但是我們看到了很多時尚，我們非常看好春天。我認為我們希望 Urban 品牌能夠在春季恢復積極的業績。

And the reason that we're hopeful about that and feel optimistic about it is there's an awful lot of product that Urban has right now that is selling very well, and it's very similar to the product that's selling so well in U.K. and in Europe. As Sheila has said and I've said that one of the main problems is that they didn't necessarily buy it, right? They didn't -- the distortion of the product was off. And so of course, we have a lot of time right now to get that distortion back in line, and we're pretty confident that we'll be able to do that.

我們對此抱有希望並對此感到樂觀的原因是，Urban 現在有很多產品賣得很好，它與在英國和歐洲賣得很好的產品非常相似。正如希拉所說，我已經說過，主要問題之一是他們不一定會買它，對吧？他們沒有——產品的失真消失了。所以當然，我們現在有很多時間來恢復這種扭曲，我們非常有信心我們能夠做到這一點。

One moment for our next question. And that will come from the line of Matthew Boss with JPMorgan.

我們下一個問題的片刻。這將來自摩根大通的 Matthew Boss。

So maybe a 2-part question. Dick, at the core Urban banner, I guess what performance are you seeing between national brands and private label in the business?

所以也許是一個兩部分的問題。迪克，在 Urban 的核心旗幟上，我猜你看到民族品牌和自有品牌在業務中的表現如何？

And to your comment on the Urban brand returning to growth in spring, how would you rank the merchandising initiatives between today and then? And then maybe the last part is that Anthro and Free People on the recent acceleration?

對於您對 Urban 品牌在春季恢復增長的評論，您如何評價從今天到那時的銷售計劃？然後也許最後一部分是 Anthro 和 Free People 關於最近的加速？

Maybe if we take a step back, Dick, how are you thinking about the strength and the duration of this shift that we're seeing into more occasion-based apparel? How long do you think that this type of trend can last?

也許如果我們退後一步，迪克，你如何看待我們看到的更多基於場合的服裝轉變的力量和持續時間？你認為這種趨勢能持續多久？

Okay. I'm just going off the cuff, say, I think it will last a considerable amount of time measured in years, not in months or seasons. So that's the first part of your question. And I'm going to ask Sheila to talk about the Urban brand, she's much, much closer to it than I.

好的。我只是即興發揮，比如說，我認為它將持續相當長的時間，以年為單位，而不是幾個月或季節。所以這是你問題的第一部分。我要請希拉談談 Urban 品牌，她比我更接近它。

Okay. So I think the -- we're seeing some large success that speaks to the right fashion in select national brands, brands that have (inaudible) extremely well with the Urban customer. Really proud of those partnerships and the consistency that we've been able to perform.

好的。所以我認為 - 我們看到了一些巨大的成功，這些成功體現了精選民族品牌的正確時尚，這些品牌（聽不清）與 Urban 客戶的關係非常好。真的為這些合作夥伴關係和我們能夠執行的一致性感到自豪。

But it has been a mix of national brands this year versus history that we're experiencing. And then within our own brands, the fashion is definitely, like Dick said, we misstepped and how big, big could be on new fashion within the U.S. market. And the team is doing everything they can to react with the customer. We are more confident as we go into spring, we feel like we can gain back some of our speed in that reaction model.

但今年是民族品牌與我們正在經歷的歷史的混合。然後在我們自己的品牌中，時尚肯定是，就像迪克說的那樣，我們走錯了方向，在美國市場上的新時尚可能有多大。團隊正在盡其所能與客戶做出反應。當我們進入春天時，我們更有信心，我們覺得我們可以在那個反應模型中恢復一些我們的速度。

Yes. And I would just add to that, Sheila, that I think on top of not distorting the top items, large enough, I think one of the things that we did was rely too much on history and try to have the penetration of some of the historic items -- historic categories be too great.

是的。我想補充一點，希拉，我認為除了不扭曲頂級項目之外，足夠大，我認為我們所做的事情之一就是過分依賴歷史並試圖滲透到一些歷史項目——歷史類別太大了。

Right, where I think the Urban customer is definitely wanting to spend their money in a very specific way with limited dollars.

是的，我認為 Urban 客戶肯定希望用有限的美元以非常具體的方式花錢。

One moment for our next question. And that will come from the line of Lorraine Hutchinson with Bank of America.

我們下一個問題的片刻。這將來自美國銀行的 Lorraine Hutchinson。

Would you expect the fourth quarter markdown pressure to be less severe than the third quarter? And then could you also dimensionalize some of the opportunities you see on freight costs from using less air freight for the 4Q product?

您是否預計第四季度的降價壓力會小於第三季度？然後，您能否對第四季度產品使用較少空運帶來的貨運成本機會進行量化？

Lorraine, I'll take the first part of that, the markdowns. As Frank said, we anticipate the inventories being a little bit cleaner by the end of the third quarter.

Lorraine，我會講第一部分，降價。正如弗蘭克所說，我們預計到第三季度末庫存會稍微清潔一些。

And so I think the markdown cadence should be a little bit better in the fourth quarter. Now offsetting that, of course, is, first of all, we don't know what our competitors are going to be doing. We think there's too much inventory across the board. So with that lower third group that I've been talking about in the bifurcation of the customer, I would say there's going to be -- I hesitate to call it a bloodbath, but it's going to be ugly in terms of the amount of discounting and markdowns.

所以我認為第四季度的降價節奏應該會好一些。現在抵消這一點，當然，首先，我們不知道我們的競爭對手會做什麼。我們認為整體庫存過多。因此，對於我一直在談論的客戶分歧中的第三類較低的群體，我會說會有 - 我不願稱其為大屠殺，但就折扣數量而言，這將是醜陋的和降價。

On the upper end on the top third, I really think it's going to be kind of business as usual, unless there's another very serious leg down in the economy. Again, right now, we see that customer buying full price. She's buying fashion, and that bodes very well for fourth quarter.

在前三分之一的高端，我真的認為這將像往常一樣，除非經濟出現另一個非常嚴重的下滑。同樣，現在，我們看到該客戶購買全價。她正在購買時裝，這對第四季度來說是個好兆頭。

Lorraine, as it relates to IMU, and I guess, I think you're probably really asking about overall gross profit margin. I think the opportunity is there for us to have improved gross profit margin.

Lorraine，因為它與 IMU 相關，我想，我想你可能真的在問整體毛利率。我認為我們有機會提高毛利率。

I think the biggest wildcard, as Dick mentioned, is as it relates to markdowns and the bifurcation that we're seeing. As it relates to IMU, as you know, IMU was down significantly last year in Q4. So we obviously have an easier comparison as well as several of our strategies are taking hold. So we do believe that we should show overall improvement in IMU versus last year, and that gives us an opportunity for better margins.

正如迪克所提到的，我認為最大的通配符是與降價和我們所看到的分叉有關。如您所知，與 IMU 相關，IMU 在去年第四季度大幅下降。因此，我們顯然有一個更容易的比較，並且我們的一些策略正在佔據一席之地。因此，我們確實相信，與去年相比，我們應該顯示 IMU 的整體改進，這為我們提供了獲得更高利潤的機會。

A lot will depend on where the rest of that macro environment is, and the rest of the retail competitive environment is and how much markdowns and promotions will have to deploy.

很大程度上取決於宏觀環境的其餘部分在哪裡，零售競爭環境的其餘部分在哪裡，以及必須部署多少降價和促銷活動。

One moment for our next question, and that will come from the line of Marni Shapiro with The Retail Tracker.

我們下一個問題的時刻，這將來自 Marni Shapiro 與零售追踪器的系列。

(inaudible) see some of the improvements at Urban Outfitters, but there are -- some of the product does look at that's been coming in. But I just -- I wanted to actually focus on Anthropologie.

（聽不清）看到 Urban Outfitters 的一些改進，但有些產品確實看到了這些改進。但我只是 - 我想真正專注於 Anthropologie。

The improvement there has been very, very consistent, getting better season after season. The stores look very well balanced between dresses, [denim, home,] accessories, the holding has looked good.

那裡的進步非常非常一致，一個賽季又一個賽季變得更好。這些商店在連衣裙、[牛仔布、家居、]配飾之間看起來非常平衡，控股看起來不錯。

I'm just curious, kind of big picture, what has changed there? Is the team closer to the consumer? Are you buying closer to need? Can you talk a little bit about what's changed there? And then what have you learned there that is applicable to, say, Urban Outfitters, for example?

我只是好奇，有點大畫面，那裡發生了什麼變化？團隊是否更貼近消費者？你是在離需要更近的地方買的嗎？你能談談那裡發生了什麼變化嗎？然後，您從那裡學到了什麼適用於例如 Urban Outfitters 的東西？

Okay. I'm going to ask Tricia and I know she's very -- she will never (inaudible) but I would say that Tricia has been a big part of that. And the team that she has built. I know she'll give them credit. So -- but I want to also give them credit. So Tricia well done. And maybe you can answer the question a little bit less on people and more on product.

好的。我要問 Tricia，我知道她非常 - 她永遠不會（聽不清），但我會說 Tricia 一直是其中的重要組成部分。還有她建立的團隊。我知道她會稱讚他們。所以——但我也想讚揚他們。所以特里西亞做得很好。也許你可以少回答關於人的問題，多回答關於產品的問題。

Yes. Thank you, Dick, and thank you, Marni. No doubt, I think we're benefiting from just the customers' appetite and spend, and we're definitely seeing, as Dick mentioned, their interest in the appetite for fashion.

是的。謝謝你，迪克，謝謝你，瑪尼。毫無疑問，我認為我們只是從顧客的胃口和消費中受益，正如迪克所說，我們肯定看到了他們對時尚的興趣。

But I do think, in addition, our team is executing very well on our brand strategy, as Frank mentioned. And if -- there was really kind of 3 components to that. But the first was some deeper investments in what we call long-life core items that are really delivering some outsized IMU and margin improvement, but also kind of repeat customer demand.

但我確實認為，此外，正如弗蘭克所說，我們的團隊在品牌戰略上執行得非常好。如果 - 真的有 3 個組成部分。但首先是對我們所謂的長壽命核心產品進行更深入的投資，這些產品確實提供了一些超大的 IMU 和利潤率改善，但也有一定的回頭客需求。

And then it's giving us an opportunity to leverage a [vessel] strategy. I think on those core deeper investments that can offset kind of are needed and enables error strategy on fashion that we're moving in as quickly as we can.

然後它給了我們一個利用[船舶]戰略的機會。我認為在這些核心上，需要能夠抵消某種程度的更深層次的投資，並在我們盡快進入的時尚領域啟用錯誤策略。

I think the second part was really distorting key categories that really is coming from dresses, shoes, as you mentioned, and really, I think recognizing some strong demand in newness in bottom silhouettes and demands that we're seeing in pants as well and really chasing after fashion.

我認為第二部分確實扭曲了真正來自連衣裙、鞋子的關鍵類別，正如你所提到的，而且真的，我認為認識到對下裝款式新穎性的強烈需求以及我們在褲子中看到的需求追逐時尚。

And then third, it was really kind of rebalancing our efforts to acquire a new younger customer to Anthropologie and we're in our second consecutive quarter meeting those goals with our new-to-brand customers really resonating under the age of 40, which is what our goal was.

第三，這真的是重新平衡我們為 Anthropologie 吸引新的年輕客戶的努力，我們連續第二個季度實現了這些目標，我們的新品牌客戶真正引起了 40 歲以下的共鳴，這是我們的目標是什麼。

So I think that, along with the team really focused on a very deliberate approach in leveraging our incredible [creative] and really to inspire our customers, both online and in stores and really enabling newness in our product assortment is working on the women's side.

所以我認為，與團隊一起真正專注於一種非常審慎的方法來利用我們令人難以置信的 [創意] 並真正激勵我們的在線和商店客戶，並真正在我們的產品分類中實現新奇正在女性方面工作。

And then in AnthroLiving and Home, that demand continues, and we're investing in distorting that in some of our key icons, our furniture and [decor] business is quite strong. So I think it's our team really editing and focusing on that newness and those important categories is working for the brand overall.

然後在 AnthroLiving 和 Home，這種需求仍在繼續，我們正在投資扭曲我們的一些關鍵圖標，我們的家具和 [裝飾] 業務相當強勁。所以我認為是我們的團隊真正在編輯和關注新事物，而那些重要的類別正在為整個品牌工作。

One moment for our next question. That will come from the line of Mark Altschwager with Robert Baird.

我們下一個問題的片刻。這將來自 Mark Altschwager 和 Robert Baird 的路線。

A couple of quick ones here. Just first on Home, I'm curious if you could speak more into how that's trending and how any mix shift to nonhome categories is affecting your margin outlook for the back half. And then Nuuly, it's great to see the pretty rapid scale there.

這裡有幾個快速的。首先在 Home 上，我很好奇您是否可以更多地談論這種趨勢以及向非家居類別的任何混合轉變如何影響您後半部分的利潤率前景。然後 Nuuly，很高興看到那裡的規模相當迅速。

You've been adding about $5 million in revenue sequentially per quarter over the past couple of quarters here. Is that a good way to think about the trajectory in the back half? Obviously, it's still small, but it has contributed maybe 1 to 2 points to overall sales growth in the first half of the year. So I just want to get a better sense of any seasonality or change in trend you might be expecting for the back half as we calibrate our models to the revenue guidance you gave.

在過去的幾個季度中，您每季度連續增加約 500 萬美元的收入。這是思考後半場軌蹟的好方法嗎？顯然，它仍然很小，但它對上半年的整體銷售增長貢獻了大約 1 到 2 個百分點。因此，當我們根據您提供的收入指導校准我們的模型時，我只想更好地了解您可能期望的後半部分的任何季節性或趨勢變化。

Okay. Mark, I'll ask Dave to take the Nuuly question first.

好的。馬克，我會請戴夫先回答努利的問題。

Yes, Mark, thanks for the question. We've been very enthusiastic about the momentum through the first half in Nuuly's business, both in sales growth and in operating loss improvement.

是的，馬克，謝謝你的提問。我們對 Nuuly 上半年業務的發展勢頭非常感興趣，無論是銷售增長還是經營虧損改善。

Sales growth has been driven by an acceleration in new subscribers into the program. We've also seen improved subscriber reactivation rates and improved retention rates. But we've not only been focused on the top line, we're very focused on the bottom line as well with profitability. So -- it's been really great to see over 200 basis points of improvement in our loss rate in Q2, year-over-year loss rate improvement, which has been driven both by leverage on the fixed expenses as well as variable expense improvements coming from operating efficiencies that were getting as we refine our execution of the model.

銷售增長是由該計劃的新訂戶加速推動的。我們還看到訂戶重新激活率和保留率有所提高。但我們不僅專注於營收，我們也非常關注盈利能力。所以——很高興看到我們在第二季度的損失率提高了 200 多個基點，損失率同比提高，這是由固定費用的槓桿作用以及來自隨著我們改進模型的執行，運營效率得到了提高。

So really excited about the profit and with the potential for profit in the future and really feeling good also about what we're seeing in the third quarter so far in August with solid acceleration in subscribers. So it feels good right now.

對利潤和未來的利潤潛力感到非常興奮，並且對我們在 8 月迄今為止的第三季度所看到的情況感到非常滿意，訂閱者穩步增長。所以現在感覺很好。

Okay. And Mark, you talked about home. I think Tricia touched on that briefly, but I'll try to give an overview of it. In the home business, we're seeing very nice improvement and positive comps in the furniture and decor business pretty much across the board, and we're also seeing that in the Urban business.

好的。馬克，你談到了家。我認為 Tricia 簡要介紹了這一點，但我將嘗試對其進行概述。在家庭業務中，我們在家具和裝飾業務中看到了非常好的改進和積極的補償，我們在城市業務中也看到了這一點。

So we're confident on that. Some of the -- what we call gift and entertain categories struggled early on in the first quarter and the beginning of the second quarter. And that was largely because we got hit by what I guess I would call a sonic boom of inventory. Because we had tried to make earlier and earlier and earlier purchases and basically just got cut as all of a sudden, the supply chain started to come back.

所以我們對此很有信心。一些我們稱之為禮品和娛樂的類別在第一季度初期和第二季度初就陷入困境。這主要是因為我們受到了我想我會稱之為庫存音爆的打擊。因為我們一直在嘗試更早更早地進行採購，並且基本上只是突然被削減，供應鏈開始恢復。

So we doubled up in many of the -- in the classifications and had way too much inventory. Anthropologie has done an excellent job of (inaudible) chain started to come back. So we doubled up in many of the -- in the classifications and had way too much inventory.

因此，我們在分類中的許多方面都翻了一番，並且庫存過多。 Anthropologie 在（聽不清）鏈開始捲土重來方面做得非常出色。因此，我們在分類中的許多方面都翻了一番，並且庫存過多。

Anthropologie has done an excellent job of working through that excess inventory. And we're pretty much back in line right now in both gift and entertain, and we're starting to see much better full price selling in the gift and entertain which gives us a lot of confidence for the holiday.

Anthropologie 在處理過剩庫存方面做得非常出色。而且我們現在在禮品和娛樂方面幾乎都恢復了一致，我們開始看到禮品和娛樂方面的全價銷售要好得多，這讓我們對假期充滿信心。

In Urban, we're seeing much of the same thing. And the downfall in their home business really centered around the soft goods and again, the back-to-school bedding category. And I would say that the problem we had there was, again, relying a little bit too much on the old and not concentrating enough on the new and not buying enough of the new and better style.

在 Urban，我們看到了很多相同的事情。他們家庭業務的衰落實際上集中在軟商品和返校床上用品類別上。我想說的是，我們遇到的問題是，過分依賴舊款，沒有足夠專注於新品，也沒有購買足夠多的新款和更好的款式。

So I guess, the home business right now, there seems to be some people doing very well, some people doing less well, and then some people are actually not doing well at all. And I would put us in the first category, but not at the very top, meaning that it's good. It's very good, but it's not extraordinary like it was 1.5 years ago.

所以我想，現在的家庭業務，似乎有些人做得很好，有些人做得不太好，然後有些人實際上根本做得不好。我會把我們放在第一類，但不是最上面的，這意味著它很好。非常好，但並不像 1.5 年前那樣非凡。

And one moment for our next question. That will come from the line of Dana Telsey with Telsey Advisory Group.

等一下我們的下一個問題。這將來自與 Telsey 諮詢集團的 Dana Telsey。

As you think about the channels of digital and stores, was there any difference in terms of what you saw at the Urban Outfitters division in digital and stores?

當您考慮數字和商店的渠道時，您在 Urban Outfitters 部門看到的數字和商店有什麼不同嗎？

And do you think about clearing inventory over the next quarter or so? How do you think about the usage of markdowns in each channel? And then just one more quick thing on the 400 basis points or more than 400 basis points gross margin erosion for Q3, how do you think of that magnitude for Q4?

您是否考慮在下一季度左右清理庫存？您如何看待每個渠道中降價的使用？第三季度毛利率下降 400 個基點或超過 400 個基點，您如何看待第四季度的這一幅度？

Dana, this is Dick. I would say that Urban actually saw, again, a very big difference between North America and Europe. In Europe, I'll start there. The store business was extremely strong, and it was strong based on a better traffic cadence.

達娜，這是迪克。我想說的是，Urban 實際上再次看到了北美和歐洲之間的巨大差異。在歐洲，我將從那裡開始。店面生意異常火爆，是基於更好的人流節奏。

And traffic in EU was up 53%, and it wasn't just because London was so vibrant and has rebounded so much from tourism and travel. It was actually very good in Germany as well. Now some of that has to do with last year, they were coming off of a lockdown early in the year, and they hadn't fully recovered. And now I would say that in Europe, they are fully recovered.

歐盟的客流量增長了 53%，這不僅僅是因為倫敦如此充滿活力，而且從旅遊業和旅遊業中反彈得如此之多。它實際上在德國也非常好。現在其中一些與去年有關，他們在年初解除了封鎖，而且還沒有完全恢復。現在我想說的是，在歐洲，他們已經完全康復了。

North America Urban actually saw better traffic as well. but they had lower comps. And again, I'll ascribe a lot of that to this lack of ordering the better products, the more fashion items, the newer fashion items, ordering enough of them.

北美城市實際上也看到了更好的交通。但他們的組合較低。再一次，我將這在很大程度上歸因於缺乏訂購更好的產品、更多的時尚產品、更新的時尚產品，訂購足夠多的產品。

And so the stores throughout Q2 were out of stock in some of the better items. But traffic is trending positively. We aren't back to FY '20, but we are getting -- we are approaching that. So now as to how we are going to use markdowns, I think for the Urban brand, we will probably use markdowns both in-store and digitally, as necessary to get the inventory down, as Frank discussed. So I don't see a big difference in that.

因此，整個第二季度的商店都缺貨了一些更好的商品。但流量呈積極趨勢。我們並沒有回到 20 財年，但我們正在得到——我們正在接近那個。所以現在關於我們將如何使用降價，我認為對於 Urban 品牌，我們可能會在店內和數字上使用降價，以降低庫存，正如弗蘭克所討論的那樣。所以我看不出有什麼大的不同。

And one moment for today's final question. And that line -- and that will come from the line of Janet Kloppenburg with JJK Research.

還有今天最後一個問題的時間。那條線——這將來自珍妮特·克洛彭伯格（Janet Kloppenburg）與 JJK 研究公司的線。

I just wanted to understand a little bit more about Urban Outfitters. I actually have a couple of quick questions. Urban Outfitters, the distortion, should we be looking for a distortion more towards dressing, the successful part of the Anthropologie business? Or what should we be looking for there?

我只是想進一步了解 Urban Outfitters。我實際上有幾個簡單的問題。 Urban Outfitters，扭曲，我們是否應該尋找更傾向於著裝的扭曲，人類學業務的成功部分？或者我們應該在那裡尋找什麼？

We are hearing that casual trends are quite difficult across the industry. And also, if Urban's inventories get back in shape by the end of the third quarter, and it sounds like the freight is moderating and perhaps that airfreight is declining year-over-year, should we be looking for a gross margin improvement in the fourth quarter? Or is that pivoting on the markdown question that you talked about, Dick.

我們聽說休閒趨勢在整個行業中都非常困難。此外，如果 Urban 的庫存在第三季度末恢復正常，聽起來貨運正在放緩，而且空運可能同比下降，我們是否應該在第四季度尋找毛利率的改善？四分之一？還是以您談到的降價問題為中心，迪克。

Janet, I'm going to take the very first part of your first question and then turn it over to Sheila. We don't think casual is dead at all. As a matter of fact, a number of the items that are selling extremely well, I would call pretty casual.

珍妮特，我要回答你第一個問題的第一部分，然後把它交給希拉。我們不認為休閒已經死了。事實上，一些賣得非常好的商品，我覺得很隨意。

But we didn't distort them correctly, meaning that we bought them, and we bought them reasonably heavily, but we didn't buy them anywhere near to the degree that the customer wanted them. And so we sold out of them. And so I don't see Urban trying to duplicate what Anthropologie has succeeded in doing, which is selling an awful lot of what my wife calls smart fashion.

但是我們沒有正確地扭曲它們，這意味著我們購買了它們，並且我們合理地大量購買了它們，但是我們沒有購買它們接近客戶想要它們的程度。所以我們把它們賣光了。因此，我認為 Urban 不會試圖複製 Anthropologie 的成功做法，即銷售大量我妻子所說的智能時尚。

So they will still be casual, but the items have changed. And so as I said before, a lot of what they did buy in bulk was a little too [same]. They were items that were pretty good last year, but in a fashion business that can kill you. And I think we see the results of that of being a little bit too not aggressive enough in the fashion area.

所以他們仍然會很隨意，但項目已經改變了。正如我之前所說，他們批量購買的很多東西有點太[相同]。它們是去年相當不錯的商品，但在時尚行業中可以殺死你。而且我認為我們看到了在時尚領域過於激進的結果。

And then, Janet, I think your question on Q4 margin was for total URBN. So I'll take that versus letting Sheila answer just for the Urban Outfitters brand. So -- you are correct. We do think we've got an improving trend as it relates to initial markup, IMU and should post favorable IMU on a year-over-year basis in the fourth quarter.

然後，珍妮特，我認為您關於第四季度利潤率的問題是針對總 URBN。所以我會接受這一點，而不是讓希拉只為 Urban Outfitters 品牌回答。所以——你是對的。我們確實認為我們已經有了一個改善的趨勢，因為它與初始標記 IMU 相關，並且應該在第四季度發布有利的 IMU。

Yes, inventory will be in a much better position at the end of the third quarter heading into the fourth quarter. So that gives us an opportunity around markdown rate. I think what Dick try to illustrate before is for us, the wildcard is just exactly where the industry is going to be and how promotional the industry is going to be.

是的，在第三季度末進入第四季度，庫存將處於更好的位置。所以這給了我們一個圍繞降價率的機會。我認為迪克之前試圖說明的是對我們來說，通配符正是這個行業的發展方向以及行業的推廣方式。

And certainly, it feels like there's a lot of inventory out there right now and how quickly are people going to take their medicine and how promotional is the fourth quarter environment going to be is the area that we're not 100% certain on, but we do feel like we will have inventory in a much better position and give ourselves definitely opportunity at all 3 brands to be less promotional within the fourth quarter, which -- and if that is the case, there is that opportunity for gross profit margin improvement in the fourth quarter. But I think time is going to tell, and we're not drawing our line in the sand on that just yet.

當然，感覺現在有很多庫存，人們服用藥物的速度以及第四季度環境的促銷方式是我們不能 100% 確定的領域，但是我們確實覺得我們的庫存會更好在第四季度。但我認為時間會證明一切，我們還沒有就此劃定界限。

So Janet, did we answer your questions? Okay. Well, that's that. Hopefully, if we did. If not, we'll get you offline. So I want to thank you all for joining the call. And I want to invite you back in 3 months for Q3. Thank you.

珍妮特，我們回答你的問題了嗎？好的。嗯，就是這樣。希望，如果我們這樣做了。如果沒有，我們會讓您下線。所以我要感謝大家加入電話會議。我想邀請你在 3 個月後回來參加第三季度。謝謝你。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。