Urban Outfitters Inc (URBN) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Urban Outfitters First Quarter Fiscal '24 Earnings Call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們先生們，美好的一天，歡迎參加 Urban Outfitters 24 年第一季度財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。

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

現在我想介紹一下投資者關係執行董事 Oona McCullough。麥卡洛小姐，你可以開始了。

Good afternoon, and welcome to the URBN First Quarter Fiscal 2024 Conference Call. Earlier this afternoon, the company issued a press release outlining the financial and operating results for the 3-month period ending April 30, 2023. The following discussions may include forward-looking statements. Please note that actual results may differ materially from those statements. 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.

下午好，歡迎參加 URBN 2024 財年第一季度電話會議。今天下午早些時候，該公司發布了一份新聞稿，概述了截至 2023 年 4 月 30 日的三個月期間的財務和經營業績。以下討論可能包含前瞻性陳述。請注意，實際結果可能與這些陳述存在重大差異。有關可能導致實際結果與預測結果存在重大差異的因素的更多信息包含在該公司向美國證券交易委員會提交的文件中。

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

在今天的電話會議上，您將聽到首席執行官理查德·海恩 (Richard Hayne) 的講話； Frank Conforti，聯席總裁兼首席運營官；和首席財務官 Melanie Marein-Efron。

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.

接下來，我們將很樂意回答您的問題。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. As usual, I'll begin the call with some brief remarks regarding our first quarter results and then make a few observations concerning the consumer and the macro environment. After that, I'll turn the call over to Frank and Melanie, who will provide more details about our Q1 results along with thoughts about the future.

謝謝你，烏娜，大家下午好。像往常一樣，我將首先對我們第一季度的業績進行一些簡短的評論，然後對消費者和宏觀環境進行一些觀察。之後，我會將電話轉給 Frank 和 Melanie，他們將提供有關我們第一季度業績的更多詳細信息以及對未來的想法。

A quick note, starting this quarter, we're breaking on FP Movement Retail segment sales and comps to provide you with better insight into our rapidly growing athletic brand.

快速說明一下，從本季度開始，我們將突破 FP Movement 零售部門的銷售和比較，以便讓您更好地了解我們快速發展的運動品牌。

Now on to a review of Q1. We are delighted to report an excellent start to fiscal 2024. First quarter results topped our expectations discussed on the February call. 4 of our 5 brands posted record first quarter revenues and total URBN delivered 6% revenue growth against a strong first quarter last year. Double-digit comp sales growth in both the store and digital channels at the Anthropologie, Free People and FP Movement brands, more than offset a negative comp at the Urban Outfitters brand and drove total Retail segment comp sales up by 5%. Nuuly, our apparel rental service, continued to enjoy strong positive response to its business concept and product offering. Nuuly's year-over-year revenues grew by 125% driven by a triple-digit gain in active subscribers, which totaled 167,000 at quarter's end. Nuuly contributed $29 million in additional revenue versus last year's first quarter. Wholesale revenue in the quarter declined by 11% as some of our larger partners sought to operate with leaner inventory levels and wrote smaller orders.

現在回顧第一季度。我們很高興地報告 2024 財年的良好開局。第一季度業績超出了我們在 2 月份電話會議上討論的預期。我們的 5 個品牌中有 4 個品牌第一季度收入創歷史新高，與去年第一季度的強勁表現相比，URBN 總收入增長了 6%。 Anthropologie、Free People 和 FP Movement 品牌的商店和數字渠道的同業銷售額均實現兩位數增長，遠遠抵消了 Urban Outfitters 品牌同業銷售額的負增長，並推動零售部門同業銷售額增長 5%。我們的服裝租賃服務 Nuuly 的經營理念和產品繼續獲得強烈的積極響應。 Nuuly 的收入同比增長了 125%，這得益於活躍用戶數的三位數增長，季度末活躍用戶總數達到 167,000 人。與去年第一季度相比，Nuuly 貢獻了 2900 萬美元的額外收入。由於我們的一些較大的合作夥伴尋求減少庫存水平並減少訂單，本季度的批發收入下降了 11%。

Customer demand for fashion at the Anthropologie, Free People and FP Movement brands accelerated in Q1 versus last year and remained elevated throughout the quarter. The strength was driven by better fashion execution and stronger marketing, which created more customer traffic, including a double-digit increase in new customers in North America. Clearly, these brands are pleased in existing customers and capturing additional market share. We currently see no signs of change in customer behavior. No indication that customers are shopping less frequently, buying fewer items or trading down. Indeed, so far in May, total Retail segment comps are in line with the first quarter results and we believe that total Retail segment comps in Q2 could look very similar to Q1 print.

Anthropologie、Free People 和 FP Movement 品牌的客戶對時尚的需求在第一季度比去年有所增加，並在整個季度保持較高水平。這一優勢是由更好的時尚執行和更強大的營銷推動的，這創造了更多的客戶流量，包括北美新客戶的兩位數增長。顯然，這些品牌對現有客戶感到滿意，並贏得了額外的市場份額。目前我們沒有看到客戶行為發生變化的跡象。沒有跡象表明顧客購物頻率降低、購買商品數量減少或降價購買。事實上，截至 5 月份，零售部門總業績與第一季度業績一致，我們認為第二季度零售部門總業績可能與第一季度非常相似。

Sales comps at the Urban Outfitters brand remain disappointed in Q1. That weakness has largely continued into May. We are planning for better women's apparel comps during the back-to-school selling season beginning in July. Our recently reestablished speed-to-market capabilities that allow us to react faster to customer preferences, plus an adjustment in our pricing architecture that offers more opening price point items could help drive and maintain this improvement.

Urban Outfitters 品牌的銷售業績在第一季度仍然令人失望。這種疲軟狀態基本上持續到了五月。我們計劃在 7 月開始的返校銷售季期間推出更好的女裝對比。我們最近重新建立了快速上市能力，使我們能夠更快地對客戶偏好做出反應，再加上我們的定價架構的調整，提供更多的開放價格點項目，可以幫助推動和維持這種改進。

Let me now turn your attention away from top line performance and focus on profitability. Here, the URBN achievement in Q1 was dramatic. The hostile operating environment over the last few years has finally abated. Freight rates have normalized, supply chain speed and reliability have returned, our IMU improvement initiatives have begun to bear fruit, and total inventories are down to last year and are once again growing at a slower rate than sales.

現在讓我將您的注意力從營收業績上轉移到盈利能力上。在這裡，URBN 在第一季度取得的成就是引人注目的。過去幾年惡劣的經營環境終於有所緩解。運費已正常化，供應鏈速度和可靠性已恢復，我們的 IMU 改進計劃已開始取得成果，總庫存降至去年水平，並再次以低於銷售的速度增長。

All this resulted in a 260-basis-point improvement in gross margins in Q1. In addition, Nuuly came within a whisker of reaching profitability in the quarter, and we remain confident that it will achieve that milestone in a future FY '24 quarter. In all, first quarter operating income soared 54% versus the prior year to $71.4 million, and earnings per share jumped 70% to a record $0.56.

所有這些導致第一季度毛利率提高了 260 個基點。此外，Nuuly 在本季度即將實現盈利，我們仍然有信心它將在未來的 24 財年季度實現這一里程碑。總體而言，第一季度營業收入較上年同期飆升 54%，達到 7140 萬美元，每股收益躍升 70%，達到創紀錄的 0.56 美元。

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

現在，我將把電話轉給弗蘭克，以提供有關我們表現的更多詳細信息。

Thank you, Dick, and good afternoon, everyone. As Dick noted, the first quarter performed ahead of our expectations that we discussed on the February call. Total company sales grew by 6% to a first quarter record of $1.1 billion, driven by a total Retail segment comp increase of 5% and a Nuuly segment revenue increase of $29 million. These increases were partially offset by an 11% decline in Wholesale segment sales and close to 100 basis points of unfavorable foreign currency translation. The growth in Retail segment comp sales was driven by a high single-digit digital comp and a low single-digit positive store comp. Nuuly's robust increase in revenue was due to a significant increase in subscribers from the prior year. Wholesale segment sales decline was due to a decrease at the Free People brand.

謝謝迪克，大家下午好。正如迪克指出的那樣，第一季度的表現超出了我們在二月份電話會議上討論的預期。在零售部門總銷售額增長 5% 和 Nuuly 部門收入增長 2900 萬美元的推動下，公司總銷售額增長 6%，達到第一季度創紀錄的 11 億美元。這些增長被批發部門銷售額下降 11% 和不利的外幣換算接近 100 個基點所部分抵消。零售部門銷售額的增長是由高個位數的數字銷售額和低個位數的正商店銷售額推動的。 Nuuly 收入的強勁增長歸因於訂戶數量較上一年大幅增加。批發部門銷售額下降是由於 Free People 品牌銷量下降。

Now moving to gross profit. Gross profit dollars increased by 15%, while gross profit rate improved by 260 basis points. The improvement in gross profit rate was primarily due to significantly improved initial margins. Each brand delivered improved initial margins in the quarter largely driven by lower inbound freight costs as well as several of our URBN cross-functional initiatives. Merchandise markdowns also improved in the quarter driven by the strong performance at the Anthropologie and Free People brands.

現在轉向毛利潤。毛利潤增長了 15%，毛利率提高了 260 個基點。毛利率的改善主要是由於初始利潤率大幅提高。每個品牌在本季度的初始利潤率均有所提高，這主要是由於入境貨運成本下降以及我們的 URBN 跨職能舉措的推動。由於 Anthropologie 和 Free People 品牌的強勁表現，本季度商品降價也有所改善。

As Melanie will discuss in more detail, we believe we can continue to drive improved IMU as well as lower markdown rates for the remainder of the year. As a result of our Q1 record sales as well as significant improvement in gross margin, our operating profit increased 54% from the previous year to $71 million, while earnings per share increased by 70% to a record Q1 of $0.56 per share.

正如 Melanie 將更詳細討論的那樣，我們相信我們可以在今年剩餘時間內繼續推動 IMU 的改進以及降價率的降低。由於我們第一季度的銷售創紀錄以及毛利率的顯著改善，我們的營業利潤比上年增長了 54%，達到 7100 萬美元，而每股收益增長了 70%，達到創紀錄的第一季度每股 0.56 美元。

Next, I want to briefly touch on inventory. Over the second half of last year, we meaningfully improved our inventory to sales ratios, and we targeted fiscal '24 Q1 inventory levels at or below our sales growth rate. I am proud to say that is exactly what we delivered. I want to thank the brands, the sourcing team and shared partners for their fantastic execution.

接下來，我想簡單談談庫存。去年下半年，我們顯著提高了庫存與銷售比率，並將 24 財年第一季度的庫存水平定為等於或低於我們的銷售增長率。我很自豪地說這正是我們所交付的。我要感謝品牌、採購團隊和共同合作夥伴出色的執行力。

Total inventory versus last year is down 6% as of Q1 with Retail segment comp inventory up 4% and Wholesale segment inventory down 23%. Total company, along with both segments are below our sales variances. For the remainder of the year, we believe we can continue to manage inventory at or below sales growth, which should give us the opportunity to lower our overall markdown rate, increase our open to buy and allow us to chase into outperforming product.

截至第一季度，總庫存較去年下降 6%，其中零售部門庫存增長 4%，批發部門庫存下降 23%。公司整體以及兩個部門的銷售額差異均低於我們的銷售額差異。在今年剩下的時間裡，我們相信我們可以繼續將庫存管理在等於或低於銷售增長的水平，這應該讓我們有機會降低整體降價率，增加我們的購買意願，並讓我們能夠追逐表現優異的產品。

I will now provide more detail by brand. Starting with the Anthropologie Group. The Anthropologie team delivered an exceptionally strong 13% Retail segment comp in Q1. This increase was driven by double-digit positive store and digital comps. Both store and digital comps were driven by increased traffic, strong regular price sales and less promotions. Strong sales, improvements in IMU and record low first quarter markdown rates all led to a record first quarter in profit dollars for Anthropologie.

我現在將按品牌提供更多詳細信息。從人類學小組開始。 Anthropologie 團隊在第一季度的零售部門業績表現異常強勁，達到 13%。這一增長是由兩位數的積極商店和數字比較推動的。商店和數字銷售均受到流量增加、正常價格銷售強勁和促銷活動減少的推動。強勁的銷售、IMU 的改進以及創紀錄的第一季度降價率都導致 Anthropologie 第一季度的利潤創歷史新高。

The impressive quarterly performance was largely driven by apparel and accessories. Within apparel, the Anthropologie customer continues to respond favorably to fashion newness with strength across the brand's more dressed-up categories such as pants, dresses, jackets and shoes with heels. As mentioned on the February call, the brand has started to see complementary growth of more casual and versatile product categories perform alongside the dresser occasion product.

令人印象深刻的季度業績主要是由服裝和配飾推動的。在服裝領域，Anthropologie 客戶繼續對該品牌的褲子、連衣裙、夾克和高跟鞋等更考究的類別中的時尚新穎性做出積極反應。正如在二月份的電話會議中提到的，該品牌已經開始看到更多休閒和多功能產品類別與梳妝場合產品的互補增長。

This trend continued throughout the quarter with all major apparel and accessory categories producing double-digit reg price comps. In the quarter, new customer acquisition in North America increased by an impressive 11%, resulting in part from well-received marketing campaigns, great store experiences and of course, strong product execution. The strength across all apparel and accessory categories along with new customer acquisition, has resulted in a nicely positive start to the second quarter, which has us optimistic that Anthropologie can continue to drive strong comps in the second quarter.

這一趨勢在整個季度持續存在，所有主要服裝和配飾類別的常規價格均達到兩位數。本季度，北美地區的新客戶獲取量增長了 11%，令人印象深刻，部分原因在於廣受好評的營銷活動、出色的商店體驗，當然還有強大的產品執行力。所有服裝和配飾類別的強勁表現以及新客戶的獲取，為第二季度帶來了良好的積極開局，這讓我們樂觀地認為 Anthropologie 可以在第二季度繼續推動強勁的業績增長。

Now I will call your attention to the Free People Group. Free People continue to deliver exceptional results, achieving record sales and profit dollars in the first quarter. Retail segment comps at the Free People Group were extraordinarily strong at 17% versus last year. Within the group, the Free People brand produced a 14% comp and FP Movement brand produced a robust 48% comp. Total Retail segment comp was driven by double-digit comps in the store and digital channels. These double-digit comps were driven by strong traffic growth in both channels, due in part to excellent marketing execution as well as average unit retail growth fueled by increased full price selling across all major product categories.

現在我請大家注意自由人民團體。 Free People 繼續交付卓越的業績，第一季度的銷售額和利潤創歷史新高。 Free People Group 的零售部門利潤與去年相比異常強勁，達到 17%。在該集團內，Free People 品牌產生了 14% 的競爭，FP Movement 品牌產生了 48% 的強勁競爭。總零售部門的競爭是由商店和數字渠道的兩位數競爭推動的。這些兩位數的業績增長是由兩個渠道的強勁流量增長推動的，部分原因是出色的營銷執行力以及所有主要產品類別全價銷售增加推動的平均單位零售增長。

Total customer growth also reached double-digit increases for the quarter at both the Free People and FP Movement brands. The customer response to the Free People Group spring and summer product trends, marketing campaigns and store experience have continued into May and we believe the Free People's Group Retail segment performance could be nicely positive in Q2.

Free People 和 FP Movement 品牌本季度的總客戶增長也達到了兩位數的增長。客戶對 Free People Group 春夏季產品趨勢、營銷活動和商店體驗的反應一直持續到五月份，我們相信 Free People's Group 零售部門的業績在第二季度可能會非常積極。

Free People Wholesale segment sales decreased 14% during the first quarter, which was in line with what we discussed on our last conference call in February. The decrease in sales was a result of weakness in department and specialty store accounts, partially offset by growth in closeout account partners. Wholesale segment profitability rebounded nicely from the lows recorded in the fourth quarter, but remained below the first quarter last year. With Q1 inventory levels now down 22% to last year, we believe we're in a much better position to further improve profitability as compared to the second half of last year. We believe Wholesale segment sales will decline for the remainder of the year due to continued focus on the right balance of account partners and doors for the brand while the rate of profit could remain in a healthy low double-digit range.

Free People Wholesale 部門銷售額第一季度下降了 14%，這與我們在 2 月份上次電話會議上討論的情況一致。銷售額下降的原因是百貨商店和​​專賣店客戶的疲軟，但清倉客戶合作夥伴的增長部分抵消了銷售額的下降。批發部門的盈利能力從第四季度的低點良好反彈，但仍低於去年第一季度。目前第一季度庫存水平較去年下降 22%，我們相信與去年下半年相比，我們處於進一步提高盈利能力的有利位置。我們認為，由於繼續關注客戶合作夥伴和品牌門的適當平衡，批發部門的銷售額在今年剩餘時間內將下降，而利潤率可能保持在健康的低兩位數範圍內。

Now moving on to the Urban Outfitters brand. Urban recorded a negative 13% retail segment comp in Q1. UO's negative comp was a result of disappointing performance in North America and a deacceleration in the Urban business in Europe that had previously been delivering positive comps. In North America, both the stores and digital channel recorded negative double-digit comp sales. In Europe, the weakness was concentrated in the U.K., while the rest of Europe continued to see positive comps. As noted previously, we believe the macro environment in North America is having an outsized impact on the Urban Outfitters customer and has begun to weigh on the U.K. customer as well.

現在轉向 Urban Outfitters 品牌。 Urban 第一季度零售業務同比下降 13%。 UO 的負面業績是由於北美業績令人失望以及歐洲城市業務增速放緩造成的，而此前該業務一直帶來正面業績。在北美，商店和數字渠道的銷售額均出現負兩位數。在歐洲，疲軟的情況主要集中在英國，而歐洲其他地區則繼續出現積極的表現。如前所述，我們認為北美的宏觀環境對 Urban Outfitters 客戶產生了巨大影響，並且也開始對英國客戶產生壓力。

While we know the macro environment for the Urban customer is not ideal, we also know we can execute better. The brand has done a good job in improving their inventory position. Total inventory is down 19%, while Retail segment comp inventory is down 15%. We believe the improved inventory to sales ratio will give the brand a better opportunity to chase into outperforming products as well as reduce the markdown rate.

雖然我們知道城市客戶的宏觀環境並不理想，但我們也知道我們可以更好地執行。該品牌在改善庫存狀況方面做得很好。總庫存下降 19%，零售部門庫存下降 15%。我們認為，存銷比的改善將為品牌提供更好的機會追逐表現優異的產品並降低降價率。

Finally, I will touch on the Nuuly business. Nuuly delivered an exceptionally strong Q1, beating our expectations for both top and bottom line performance. Strong subscriber growth continued in the quarter with the current active subs now topping 167,000. We continue to believe active subs could approach or possibly exceed 200,000 by year-end. In addition to strong revenue numbers, Nuuly continues to make fast and steady strides towards profitability, nearly reaching breakeven in Q1. We continue to believe Nuuly will record its first profitable quarter later this year.

最後，我要談談Nuuly的業務。 Nuuly 第一季度的業績異常強勁，超出了我們對營收和淨利潤的預期。本季度訂閱者繼續強勁增長，目前活躍訂閱者數量已突破 167,000 人。我們仍然認為，到年底，活躍訂閱者數量可能會接近或超過 20 萬。除了強勁的收入數字外，Nuuly 繼續快速穩定地實現盈利，在第一季度幾乎實現盈虧平衡。我們仍然相信 Nuuly 將在今年晚些時候實現第一個盈利季度。

I will now turn the call to Melanie Marein-Efron, our Chief Financial Officer.

我現在將電話轉給我們的首席財務官 Melanie Marein-Efron。

Thank you, Frank, and good afternoon, everyone. Now I will discuss our thoughts on the second quarter and fiscal 2024 financial performance. We are pleased that overall consumer demand has remained strong to start the quarter and we are planning for this strength to continue throughout the second quarter. Right now, we believe that second quarter total company sales growth could be mid-single digits. Sales growth in Q2 could result from mid-single-digit growth in Retail segment comp sales and high double-digit growth of Nuuly segment sales versus last year.

謝謝弗蘭克，大家下午好。現在我將討論我們對第二季度和 2024 財年財務業績的看法。我們很高興看到本季度開始的整體消費者需求仍然強勁，我們計劃在整個第二季度繼續保持這種強勁勢頭。目前，我們認為第二季度公司總銷售額增長可能為中個位數。第二季度的銷售增長可能源於零售部門銷售中個位數的增長以及 Nuuly 部門銷售與去年相比的高兩位數增長。

Our growth in the Retail and Nuuly segments is likely to be partially offset by sales decline in our Wholesale segment. Additionally, similar to first quarter, we believe foreign exchange could negatively impact total sales growth by approximately 100 basis points.

我們零售和 Nuuly 部門的增長可能會被批發部門的銷售額下降部分抵消。此外，與第一季度類似，我們認為外匯可能會對總銷售增長產生約 100 個基點的負面影響。

Now on to gross profit margin, we believe URBN's gross margin rate for the second quarter could improve by nearly 300 basis points compared to the prior year second quarter. The increase in gross profit margin could be driven by higher initial product margins from lower inbound freight costs as well as lower merchandise markdowns. We have made significant progress over the past few quarters, controlling our inventory to sales ratio. In addition, an improved supply chain with faster speed and reliability versus last year, is allowing us to bring product in closer to demand. As a result of well-controlled inventory and healthier supply chain, we believe there could be lower markdowns in the second quarter compared to the prior year second quarter.

現在談到毛利率，我們認為URBN第二季度的毛利率可能比去年第二季度提高近300個基點。毛利率的增加可能是由於入境貨運成本降低以及商品降價降低帶來的初始產品利潤率提高所致。過去幾個季度，我們在控制庫存與銷售比率方面取得了重大進展。此外，與去年相比，改進的供應鏈速度更快、可靠性更高，使我們能夠使產品更接近需求。由於庫存控制良好，供應鏈更健康，我們認為第二季度的降價幅度可能低於去年第二季度。

Now moving on to SG&A expenses. Based on our current sales performance and plan, we believe SG&A growth for the second quarter will increase in the low double digits. Our planned growth in SG&A could be primarily driven by higher overall payroll due to anticipated higher incentive pay from improved company performance, lower vacancy rates and higher payroll rates. In addition, we expect marketing expenses to support growth in customer and sales could be higher versus last year.

現在轉向 SG&A 費用。根據我們目前的銷售業績和計劃，我們相信第二季度的銷售及管理費用增長將以低兩位數增長。我們計劃的銷售、管理及管理費用增長主要是由於公司業績改善、職位空缺率降低和工資率上升而帶來的激勵薪酬增加，從而導致整體工資增長。此外，我們預計支持客戶增長的營銷費用和銷售額可能會比去年更高。

This could result in SG&A rate deleveraged versus last year. As always, if sales performance fluctuates, we maintain a certain level of variable SG&A spending that we can adjust up and down depending on how business is performing. While we believe SG&A growth could outpace sales growth in Q2, we also believe that SG&A expense growth in the second half of the year will be more closely aligned with sales growth. We are currently planning our effective tax rate to be approximately 26% for the second quarter and 25% for the full year.

這可能導致 SG&A 率較去年去槓桿化。與往常一樣，如果銷售業績出現波動，我們會維持一定水平的可變 SG&A 支出，我們可以根據業務表現進行上下調整。雖然我們認為第二季度的銷售增長可能超過銷售增長，但我們也認為下半年的銷售增長將與銷售增長更加緊密地聯繫在一起。我們目前計劃第二季度的有效稅率約為 26%，全年的有效稅率約為 25%。

Now moving on to inventory. We believe that inventory levels in the second quarter could grow at a rate below sales growth. The team continues to be focused on speeding up inventory turns and managing inventory growth below sales for the remainder of the year as they target product turns closer to pre-pandemic levels.

現在轉向庫存。我們認為第二季度庫存水平的增長速度可能低於銷售增長速度。該團隊繼續專注於加快庫存周轉，並在今年剩餘時間內將庫存增長控制在銷售額以下，因為他們的目標是產品接近大流行前的水平。

Capital expenditures for the fiscal year are planned at approximately $230 million. This spend is primarily related to investments in additional distribution facilities. In late summer, we will be opening our highly automated omni fulfillment facility in Kansas City, Kansas. In addition, we'll be investing in a new rental fulfillment facility in Missouri within the Kansas City region. We are targeting to open this facility by the end of fiscal year '24. The new Missouri facility, along with our existing facility in Bristol, Pennsylvania, will support the growth and expansion of our Nuuly rental business in North America.

本財年的資本支出計劃約為2.3億美元。這筆支出主要與額外配送設施的投資有關。夏末，我們將在堪薩斯州堪薩斯城開設高度自動化的全方位履行設施。此外，我們將在密蘇里州堪薩斯城地區投資建設一個新的租賃履行設施。我們的目標是在 24 財年末開設該設施。密蘇里州的新工廠以及我們在賓夕法尼亞州布里斯托爾的現有工廠將支持我們在北美的 Nuuly 租賃業務的增長和擴張。

Lastly, we'll be opening approximately 33 new stores and closing approximately 24 stores during fiscal year 2024. 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.

最後，我們將在 2024 財年開設約 33 家新店並關閉約 24 家店。需要提醒的是，上述內容並不構成預測，而只是我們當前觀點的反映。該公司不承擔任何更新前瞻性陳述的義務。

Now I'm pleased to turn the call back over to Dick.

現在我很高興將電話轉回給迪克。

Thank you, Mel, and thank you, Frank. In conclusion, as you've heard from Mel and Frank, we're confident about our prospects for the second quarter and optimistic for the entirety of fiscal 2024. We have 4 brands that are executing at [rarefied] levels and gaining market share. In addition to top line growth, we have significant margin recapture potential this year as demonstrated by our performance in the first quarter. This gives us additional opportunities to deliver improved profitability and EPS. All this would not be possible without the hard work of our brand, and shared service leaders, their merchant, creative and operating teams and our 24,000 associates worldwide.

謝謝你，梅爾，謝謝你，弗蘭克。總之，正如您從 Mel 和 Frank 那裡聽到的那樣，我們對第二季度的前景充滿信心，並對整個 2024 財年持樂觀態度。我們有 4 個品牌正在以[稀有]的水平執行並贏得市場份額。除了營收增長之外，我們今年還有巨大的利潤率回升潛力，第一季度的業績就證明了這一點。這為我們提供了額外的機會來提高盈利能力和每股收益。如果沒有我們的品牌、共享服務領導者、他們的商人、創意和運營團隊以及我們全球 24,000 名員工的辛勤工作，這一切都是不可能實現的。

Their amazing dedication and creativity produced a truly outstanding quarter and I thank them. I also recognize and thank our many partners around the world. Finally, I thank our shareholders for their continued support. That concludes our prepared remarks. Before I turn the call over for your questions, I remind you to please keep your questions to 1 per caller, so we have time to recognize more of your colleagues. Thank you, and now for your questions.

他們驚人的奉獻精神和創造力創造了一個真正出色的季度，我感謝他們。我還認可並感謝我們在世界各地的許多合作夥伴。最後，我感謝我們的股東一直以來的支持。我們準備好的發言到此結束。在我轉接您的電話詢問您的問題之前，我提醒您請將您的問題限制在每個呼叫者 1 個以內，以便我們有時間認識更多您的同事。謝謝您，現在請回答您的問題。

(Operator Instructions) Our first question will come from the line of Adrienne Yih from Barclays.

（操作員說明）我們的第一個問題將來自巴克萊銀行的 Adrienne Yih。

Great. Okay. I'm going to stick to one question, like the role say, Dick. One is on Urban Outfitters and the negative double-digit comp. My question is what's the primary kind of if you ranked 3 things or 2 things? What's the primary reason? Is it that the product is not correct? Or is it that you're holding back on the ability to kind of like put inventory out there because you don't really believe that you're not buying behind it? Or is it the consumer?

偉大的。好的。我要堅持一個問題，就像角色說的那樣，迪克。其中之一是 Urban Outfitters 和負兩位數的補償。我的問題是，如果您對 3 件事或 2 件事進行排名，那麼主要是什麼？主要原因是什麼？難道是產品不對？或者是因為您並不真正相信自己不會購買庫存，所以您正在抑制將庫存放在那裡的能力？或者是消費者？

Okay, Adrienne. I'm going to take a shot at starting this and then pass it on to Sheila, who is much closer to that than myself. I would say that there are 3 primary reasons, and I'm not going to put them in any particular order of importance. Number one is the macro climate which I think is working against the Urban Outfitters customer, as we've spoken about in the past, I think that, that has intensified somewhat as people's take-home pay continues to erode from the inflationary pressures. So I think that's one. Number two, I think that the product is not where it should be. And we have made strides on that front, and Sheila will talk about that, particularly in the women's area. And number three, I believe that when we planned the quarter, we planned inventory a little bit too lean, particularly in the women's apparel area and sort of didn't allow the women's apparel sales to bloom as well as they may have if we have had a little bit more inventory. So those would be my 3. Sheila, do you want to reinforce that, dispute that or add to it.

好吧，艾德麗安。我將嘗試開始這個，然後將其傳遞給希拉，她比我更接近這個目標。我想說有 3 個主要原因，我不會按照特定的重要性順序排列它們。第一個是宏觀氣候，我認為這對 Urban Outfitters 客戶不利，正如我們過去談到的那樣，我認為，隨著人們的實得工資繼續因通貨膨脹壓力而受到侵蝕，這種情況有所加劇。所以我認為這是一個。第二，我認為產品沒有達到應有的水平。我們在這方面已經取得了長足的進步，希拉將談論這一點，特別是在女性領域。第三，我認為，當我們計劃本季度時，我們計劃的庫存有點過於精簡，特別是在女裝領域，並且有點不允許女裝銷售蓬勃發展，如果我們有的話庫存多一點。所以這些就是我的 3。希拉，你想強化這一點、質疑這一點還是補充一點。

I will add to it. I feel like from a product perspective and an -- inventory perspective, the brand did intentionally go into the quarter with controlled inventory levels. And like Dick said, maybe to controlled in some places, but to bring back the health of the business, I think that was really an important step and I commend the teams for that controlled inventory, it will set us in a good place from profitability, hopefully, in Q2. I do think we're seeing some strong results from productivity within our women's apparel business that we can continue to build on and react to because of our controlled inventory. So that feels very good. I feel like the teams are quite excited about their assortments and back-to-school where they have more of a range of sensibilities and are addressing what they feel like is more of the correct fashion for our consumer.

我會添加它。我覺得從產品角度和庫存角度來看，該品牌確實有意在進入本季度時控制庫存水平。正如迪克所說，也許要在某些地方進行控制，但為了恢復業務的健康，我認為這確實是重要的一步，我讚揚團隊控制庫存，這將使我們在盈利方面處於有利地位希望在第二季度。我確實認為我們的女裝業務生產力取得了一些強勁的成果，由於我們控制了庫存，我們可以繼續發展並做出反應。所以感覺非常好。我覺得團隊對他們的品種和回到學校感到非常興奮，他們有更多的敏感性，並且正在解決他們認為對我們的消費者來說更正確的時尚。

And I would just add, we're working on connecting and having customer insights into our consumer. And that's an important piece of regrowth as we hired a Chief Customer Officer and want to get back to connecting to our core customer in a meaningful way and that's part of our building blocks for the long term as well.

我想補充一點，我們正在努力聯繫我們的消費者並讓客戶洞察我們的消費者。這是再生的重要組成部分，因為我們聘請了首席客戶官，並希望以有意義的方式重新與我們的核心客戶建立聯繫，這也是我們長期構建基石的一部分。

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

我們的下一個問題來自美國銀行的洛林·哈欽森 (Lorraine Hutchinson)。

Now that you've diagnosed the issues at Urban, can you discuss the drivers of your expectation for improved women's apparel performance during back-to-school. And maybe just elaborate on how a more normal supply chain can help the Urban brand.

既然您已經診斷出 Urban 的問題，您能否討論一下您期望在返校期間改善女性服裝表現的驅動因素。也許只是詳細說明更正常的供應鏈如何幫助城市品牌。

So I think getting back to the speed model that Urban has been used to has been critical, and that's why we feel like we have more confidence going into the back-to-school time frame, especially (inaudible) August, end of July, as Dick said. I think there's a couple of things that are being forced corrected. One is the price architecture. I think over the last year, the brand has learned that it can sell the larger range of assortment up to a higher price point, but they've walked an opening price point value consumer.

因此，我認為回到 Urban 所習慣的速度模型至關重要，這就是為什麼我們覺得我們對返校時間框架更有信心，特別是（聽不清）八月、七月底，正如迪克所說。我認為有一些事情正在被強制糾正。一是價格架構。我認為在過去的一年裡，該品牌已經了解到它可以以更高的價格出售更多種類的產品，但他們已經向價值消費者開放了價格點。

We feel very strongly that we're seeing very good reads from Q1 into Q2 in key categories of which the team has already addressed this. So we feel very confident that, that will continue into back-to-school as we continue to chase into those correct products. And the other belief, I believe, is just understanding where the customer's mindset is into fashion and the evolution of where the bottoms business is evolving to, I think we'll be better -- in better stock position than our bottoms assortment as well as price point going (inaudible).

我們強烈地感覺到，我們在第一季度到第二季度的關鍵類別中看到了非常好的讀數，團隊已經解決了這個問題。因此，我們非常有信心，隨著我們繼續追求那些正確的產品，這種情況將持續到返校。我相信，另一個信念就是了解客戶對時尚的心態以及下裝業務的發展方向，我認為我們會做得更好 - 比我們的下裝品種更好的庫存狀況以及價格點（聽不清）。

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

我們的下一個問題來自花旗銀行的 Paul Lejuez。

Just to keep the Urban Outfitters team, UO. Can you talk about gross margin this quarter at UO and what you expect in 2Q? Just maybe anything else you could share about the overall path for profit improvement as we move through the year.

只是為了保留Urban Outfitters團隊，UO。您能談談 UO 本季度的毛利率以及您對第二季度的預期嗎？也許您還可以分享有關今年利潤改善總體路徑的其他信息。

Paul, this is Frank. I'll take that one. And we really don't give out specifics on -- by brand, specific numbers by brand, from a gross profit margin perspective. With that being said, I can speak to urban as well as all of the URBN brands have made really healthy improvement in IMU and Urban certainly is not lagging where Free People and Anthropologie have from an execution standpoint there. And we think that, that continued -- that IMU improvement will continue into the second quarter and for the remainder of the year. I would say additionally, as it relates to Urban, Sheila mentioned, inventory is in a much better position right now. So I think that gives them the opportunity with not being as heavy as we were last year to present a markdown rate improvement opportunity as the year progresses as well as they start to be able to chase into a product that's performing well.

保羅，這是弗蘭克。我會接受那個。從毛利率的角度來看，我們確實沒有按品牌、按品牌的具體數字給出具體信息。話雖如此，我可以和 Urban 談談，所有 URBN 品牌在 IMU 方面都取得了真正健康的進步，從執行的角度來看，Urban 肯定不落後於 Free People 和 Anthropologie。我們認為，IMU 的改進將持續到第二季​​度和今年剩餘時間。另外，我想說的是，由於與城市相關，希拉提到，庫存目前處於更好的位置。因此，我認為這給了他們機會，隨著時間的推移，他們不會像去年那樣沉重地提供降價率改進機會，並且他們開始能夠追逐表現良好的產品。

Our next question comes from the line of Alex Straton from Morgan Stanley.

我們的下一個問題來自摩根士丹利的亞歷克斯·斯特拉頓（Alex Straton）。

Great. Congrats on the quarter. I want to make sure I understood kind of how you guys are positioning, how Urban panned out in the quarter. Does that mean that things strengthened throughout the quarter? Or did they stay the same? And maybe just the same question for Anthro and Free People is kind of if things got better, were more consistent or got worse in any case.

偉大的。恭喜本季度。我想確保我了解你們的定位以及厄本在本季度的表現。這是否意味著整個季度的情況都在加強？或者他們保持不變？對於 Anthro 和 Free People 來說，也許同樣的問題是，無論如何，情況是變得更好、更一致還是變得更糟。

Well, I will take the total brands to begin with, and then ask Sheila to talked about Urban. The quarter stayed pretty constant, a little bit stronger in February, but I would say, reasonably constant. And the good news is that sales to date in May have maintained the pace with the exception of Free People where we've actually seen a reasonably sharp increase in their digital business. So they're actually doing better. When you look at it overall across all brands, the Retail segment, we still believe that Q2 Retail segment comp will be in the mid-single-digit positive range, and we think that is very good news. Do you want to talk about the Urban?

嗯，我先從總品牌開始，然後請Sheila 談談Urban。該季度保持相當穩定，二月份稍微強勁一些，但我想說，相當穩定。好消息是，迄今為止，5 月份的銷售額一直保持著增長速度，但 Free People 除外，我們實際上看到他們的數字業務出現了相當急劇的增長。所以他們實際上做得更好。當你從所有品牌、零售部門整體來看時，我們仍然認為第二季度零售部門的比較將處於中個位數的正值範圍內，我們認為這是一個非常好的消息。你想談談城市嗎？

Urban. I think the performance of Urban as mentioned, is pretty steady between Q1 and Q2. It was pretty steady throughout the quarter as well. I think the inventory levels, like we said, have been controlled we are walking in speeding up as we see improvements in areas and especially the women's area. We are up against a significant amount of markdown volume that we didn't plan to anniversary going into May. So we're hopeful that that's where the hope is that we can produce a better profit for the company in Q2 by controlling the inventories and not buying into the markdowns again.

城市的。我認為，正如前面提到的，Urban 的表現在第一季度和第二季度之間相當穩定。整個季度也相當穩定。我認為，正如我們所說，庫存水平已經得到控制，我們正在加快步伐，因為我們看到各領域，特別是女性領域的改善。我們面臨著大量的降價量，而我們並沒有計劃在五月份進行週年慶。因此，我們希望通過控制庫存而不是再次降價購買，我們可以在第二季度為公司帶來更好的利潤。

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

我們的下一個問題來自摩根大通的 Matthew Boss。

And congrats on the nice quarter. Dick, in [what's clearly] a very dynamic macro backdrop, I guess, what do you believe is driving the sustained momentum or magnitude at Anthropologie and Free People. How best market share white space looking forward at these concepts? And just on the gross margin side, what -- or how can you speak to overall visibility in terms of IMU recapture as we think about maybe the next 12 months? Just what's the opportunity there?

祝賀這個美好的季度。迪克，在[很明顯]一個非常動態的宏觀背景下，我想，您認為是什麼推動了人類學和自由人民的持續勢頭或規模。展望這些概念如何獲得最佳市場份額？就毛利率而言，當我們考慮未來 12 個月時，您如何談論 IMU 重新捕獲的整體可見性？那裡有什麼機會呢？

Well, I'll let Frank talk about that. I'll talk about what's driving Anthro and Free People. I look at it as 4 factors: First and foremost is fashion execution. I think the brands, the creative people and the merchants have done an outstanding job calling the fashion. And obviously, the customers are responding. It has we said on the call earlier, it's hitting more fashion silhouette and sensibilities and a couple of examples of that is Anthropologie's Water Edge and what Free People call [Free Us], which are different sensibilities than we had last year at this time.

好吧，我會讓弗蘭克談談這個。我將談談 Anthro 和 Free People 的驅動力。我將其視為四個因素：首先也是最重要的是時尚執行力。我認為品牌、創意人士和商家在引領時尚方面做得非常出色。顯然，客戶正在做出回應。我們之前在電話會議上說過，它觸及了更多的時尚輪廓和情感，其中的幾個例子是 Anthropologie 的 Water Edge 和 Free People 所說的 [Free Us]，它們與我們去年此時的情感不同。

The second thing is all categories are working. So it's oftentimes when a category like apparel is working, either intimates or accessories or shoes aren't working right now at both Anthropologie and Free People. All categories are seeing that comp success. And so it plays on each category plays on the other.

第二件事是所有類別都在發揮作用。因此，很多時候，當服裝等品類發揮作用時，無論是內衣、配飾還是鞋子，在 Anthropologie 和 Free People 上都不起作用。所有類別都看到了這種競爭的成功。因此，它在每個類別上發揮作用，在另一個類別上發揮作用。

The third is the product mix is a little bit different this year. And in some cases, it's creating higher AUR that with -- along with lower markdowns are pushing the AUR so that same number of transactions will yield higher sales and higher comps.

第三是今年的產品結構有點不同。在某些情況下，它創造了更高的 AUR，同時較低的降價正在推動 AUR，以便相同數量的交易將產生更高的銷售額和更高的競爭。

And then last and never least, I think we have better marketing across both of those brands. The marketing at Free People and Anthropologie is just outstanding. It's cross-functional coordination and planning around the marketing campaigns has been terrific, and it just led to better customer engagement, better customer acquisition and higher traffic online and in stores.

最後也是最重要的一點是，我認為我們在這兩個品牌上都有更好的營銷。 Free People 和 Anthropologie 的營銷非常出色。它圍繞營銷活動進行的跨職能協調和規劃非常出色，而且它帶來了更好的客戶參與度、更好的客戶獲取以及更高的在線和商店流量。

And then, Matt, as it relates to the visibility on IMU, I would call it the visibility high. And there are really 2 main things driving our IMU improvement across all of the brands. One is the recovery of cost of inbound freight. And as we sit here today, we have essentially recovered back to pre-pandemic levels. And obviously, that hasn't been where we've been trading over the last few years. So we feel pretty comfortable about those gains and that opportunity for improvement for the remainder of the year. But I certainly also don't want to discount the incremental work that's being done by the brand sourcing and shared service teams, honestly, to drive even further value.

然後，馬特，因為它與 IMU 上的可見性有關，我將其稱為高可見性。實際上有兩個主要因素推動了我們所有品牌 IMU 的改進。一是進站運費成本回收。當我們今天坐在這裡時，我們基本上已經恢復到大流行前的水平。顯然，這並不是我們過去幾年交易的地方。因此，我們對這些成果以及今年剩餘時間內的改進機會感到非常滿意。但老實說，我當然也不想低估品牌採購和共享服務團隊為推動進一步價值而所做的增量工作。

It was about 1.5 years ago, we set out with a 500-basis-point improvement initiative across over URBN. And as Dick mentioned on our previous call, we believe by the time we reach the fourth quarter of this year, which would mark 2 years from the time that we stated that goal that we would have achieved approximately 2/3 of that goal. As we sit here today, it looks like we'll probably be at that 2/3, if not even closer, which is just great news.

大約 1.5 年前，我們在 URBN 上啟動了 500 個基點的改進計劃。正如迪克在我們之前的電話會議中提到的那樣，我們相信，到今年第四季度時，即距離我們宣布這一目標的時間過去兩年，我們將實現該目標的大約 2/3。當我們今天坐在這裡時，看起來我們可能會達到 2/3，如果不是更接近的話，這只是個好消息。

And the second part that's not just the inbound freight cost that's driving that relative to these initiatives is utilizing a greater rate of ocean versus air, which is enabled by several of the initiatives that the brands and sourcing teams have put into play, increasing our own brand penetration whereas I think right now as a company we're at the highest rate of owned brand penetration we've ever had at URBN. We're increasing our depth of product buys.

第二部分不僅僅是入境貨運成本，相對於這些舉措而言，海運與空運的利用率更高，這是由品牌和採購團隊實施的幾項舉措實現的，增加了我們自己的品牌滲透率，而我認為目前作為一家公司，我們的自有品牌滲透率是 URBN 有史以來最高的。我們正在增加產品購買的深度。

As Sheila mentioned at the Urban Outfitters brand, as she's seeing a higher rate of productivity per style. We're also leveraging earlier and deeper fabric positioning across more styles, which is enabling favorable pricing as well as speed. And last but not least is a further utilization of our 3D product design program, which is enabled to gives us speed. It gives us cost and operational efficiencies across each of our brands.

正如 Sheila 在 Urban Outfitters 品牌中提到的那樣，她發現每種款式的生產率都更高。我們還在更多款式中利用更早、更深入的面料定位，從而實現有利的定價和速度。最後但並非最不重要的是進一步利用我們的 3D 產品設計程序，這可以提高我們的速度。它為我們每個品牌帶來了成本和運營效率。

Our next question will come from the line of Dana Telsey from Telsey Advisory Group.

我們的下一個問題將來自 Telsey Advisory Group 的 Dana Telsey。

Nice to see the progress. As you think about the real estate portion of your expansion this year, any difference even by brand where you're expanding, what type of returns you're looking for a change in square footage, certainly seems like the physical footprint has even more relevant. How are you adjusting or enhancing your box and the returns?

很高興看到進展。當您考慮今年擴張的房地產部分時，即使是您正在擴張的品牌、您尋求的回報類型、面積變化的任何差異，當然看起來物理足跡也更相關。您如何調整或增強您的盒子和回報？

Okay. Dana, I'll take it and then maybe Frank wants to add something to it. When we look for new store locations, we're looking pretty much in the areas that are producing the best results right now. And that tends to be the Southeast, the Southwest and the Midwest in places that we are, what I believe, is under-penetrated, prime example of that would be Florida. And we would anticipate opening more Anthropologie stores, more Free People stores and more Urban stores in Florida over the coming year or 2. And when we do that, the stores will probably be slightly smaller than what we currently have in the -- in our portfolio because we see the smaller stores oftentimes have a higher return, and they will be perhaps in malls, but perhaps in centers, but most of the time, not stand-alone.

好的。達納，我會接受它，然後弗蘭克也許想添加一些東西。當我們尋找新的商店位置時，我們主要關注目前效果最好的區域。我認為，這往往是東南部、西南部和中西部地區的滲透率較低，佛羅里達州就是最好的例子。我們預計在未來一兩年內在佛羅里達州開設更多的 Anthropologie 商店、更多的 Free People 商店和更多的 Urban 商店。當我們這樣做時，這些商店可能會比我們目前在美國的商店略小一些。組合，因為我們看到較小的商店通常有更高的回報，它們可能會在購物中心，但可能在中心，但大多數時候，不是獨立的。

And I think just to add to that, I know Dick taking the brand leaders leaving this as well. I think as you said, where we see the largest opportunity from an expanding perspective, not just from a geographical conversation, but from a brand conversation, the first thing that comes to my mind is really FP Movement. Those stores have performed exceptionally well. I think we're in the mid-30s right now in stand-alone stores seeing productivity at really close to where the legacy Free People brand performs and for a brand that's really in its early days and relatively low awareness still to have that level of productivity really leaves us excited about the number of stores where we can get to. And Sheila is going to look at me and sort of shift right here. And I think Dick and I talked -- we've always talked in North America about our bigger brands being in that 200 to 250 opportunity type range. And I don't think that, that's an outlandish opportunity for the FP Movement brand. And if you think about where they are today and how well they're performing, I think that's where I think from a brand perspective, our biggest door opportunity set.

我想補充一點，我知道迪克也帶著品牌領導者離開了這個。我認為正如你所說，當我們從擴展的角度看到最大的機會時，不僅僅是從地域對話，而是從品牌對話，我首先想到的是 FP Movement。這些商店的業績都非常出色。我認為我們現在處於 30 多歲的獨立商店中，我們看到生產力非常接近傳統 Free People 品牌的表現，對於一個真正處於早期階段、認知度相對較低的品牌來說，仍然具有這樣的水平。生產力確實讓我們對我們可以到達的商店數量感到興奮。希拉會看著我，然後就轉移到這裡。我認為迪克和我談過——我們在北美總是談論我們的大品牌處於 200 到 250 個機會類型範圍內。我不認為這對於 FP Movement 品牌來說是一個奇怪的機會。如果你考慮一下他們今天的處境以及他們的表現如何，我認為從品牌角度來看，這就是我們最大的機會集。

Our next question will come from the line of Marni Shapiro from The Retail Tracker.

我們的下一個問題將來自《零售追踪》的 Marni Shapiro。

Congratulations. The stores really have looked fantastic. Frank, I actually want to talk to you a little bit about -- or find that -- dig a little bit into the 10% operating margin goal because some of that should come back from the freight, some of that should come back from the improvement of Urban, could you just dive into a little bit like how much is Urban, how much is freight? And like what the other pieces are as we look forward.

恭喜。這些商店看起來真的很棒。弗蘭克，我實際上想和你談談——或者發現——深入研究 10% 的營業利潤率目標，因為其中一些應該來自運費，一些應該來自城市的改善，你能深入了解一下城市的價格是多少，運費是多少嗎？就像我們期待的其他作品一樣。

Yes, absolutely, Marni. Happy to answer that. So you're absolutely correct. We are still targeting 10% operating profit rate. And honestly, I think as we sit here today, we feel confident that we have the ability to do so. We're obviously -- and happy to be delivering a healthy operating profit improvement this year. And right now, and unless a large macro event occurs, I think our first quarter gains will continue for the remainder of the year. I think as you spoke to some of the opportunities beyond this year, we still believe we have gross profit margin improvement from our IMU initiative. I think we believe across all 3 brands, we'll be about 2/3, it's not a little bit more of the way by the time we hit the fourth quarter of this year, with additional IMU opportunity across all 3 brands next year. And I think there's also some markdown opportunity, and that's largely going to be coming probably from the Urban Outfitters brand. I think obviously, Urban is not operating as we would like right now. And when that business recovers, it will contribute incrementally to our profitability.

是的，絕對是，瑪尼。很高興回答這個問題。所以你是完全正確的。我們的目標仍然是10%的營業利潤率。老實說，我認為當我們今天坐在這裡時，我們相信我們有能力做到這一點。顯然，我們很高興今年能夠實現營業利潤的健康增長。目前，除非發生重大宏觀事件，否則我認為我們第一季度的收益將持續到今年剩餘時間。我認為，當您談到今年以後的一些機會時，我們仍然相信我們的 IMU 計劃可以提高毛利率。我認為我們相信，在所有 3 個品牌中，我們的比例將約為 2/3，到今年第四季度時，這一比例不會再高一點，明年所有 3 個品牌中都會有額外的 IMU 機會。我認為還有一些降價機會，這很大程度上可能來自 Urban Outfitters 品牌。我認為顯然，Urban 目前並沒有按照我們希望的方式運作。當該業務復甦時，它將逐步提高我們的盈利能力。

Lastly, I also don't want to leave out Nuuly. I think we believe Nuuly has the opportunity to turn its first quarter of profit in the back half of this year, and we don't think that that's going to be a onetime event. As we enter into next year, we think that, that brand will be able to contribute to our overall profitability growth as well. So we've got a lot of different drivers across all of URBN that we believe gives us a real opportunity to hit 10% operating profit rate and it's something that we certainly have targeted as a leadership team, and we talk about the time.

最後，我也不想遺漏 Nuuly。我認為我們相信 Nuuly 有機會在今年下半年實現第一季度的盈利，而且我們認為這不會是一次性事件。當我們進入明年時，我們認為該品牌也將能夠為我們的整體盈利增長做出貢獻。因此，我們在整個 URBN 中有很多不同的驅動因素，我們相信這給了我們真正的機會來達到 10% 的營業利潤率，這也是我們作為領導團隊的目標，我們談論的是時間。

Our next question will come from the line of Janet Joseph Kloppenburg from JJK Research Associates.

我們的下一個問題將來自 JJK Research Associates 的 Janet Joseph Kloppenburg。

Congratulations on a really nice performance. Just to go back to Urban Outfitters for a minute. It sounds like you're really encouraged that the active school business especially in women's could be great. And I'm just wondering if you're still committed to the comps turning positive in the back-to-school season or how we should think about the sequential improvement expected at Urban Outfitters. And then I wondered across the 3 brands, what's going on with pricing year-over-year and how we should think about price elevation opportunity for the remainder of the year?

祝賀您的精彩表演。我們先回到 Urban Outfitters。聽起來你真的很受鼓舞，活躍的學校業務，尤其是女子學校的業務可能會很棒。我只是想知道您是否仍然致力於在返校季節實現積極的比較，或者我們應該如何考慮 Urban Outfitters 預期的連續改進。然後我想知道這 3 個品牌的定價同比情況如何，以及我們應該如何考慮今年剩餘時間的價格上漲機會？

Sure, Janet. I don't think we want to get ahead of ourselves here. First of all, we're talking about women's apparel category, which while it's the biggest portion of the Urban brand, and it is the leader of the Urban brand, it's certainly not the only category within it. And we expect that we have an opportunity to get back to, I will call flattish comps sometimes in the third quarter or even perhaps before that. So yes, we're excited about some of the early reads that we're seeing. We do believe when we deliver the additional inventory that I think the stores, particularly are requesting and make some other changes that we've discussed already that we can see some nice improvements. But I don't want to overpromise that, that would be a very bad thing for us to do. And I think that once we get the urban women's area, a little bit more under control, then we can spread that into accessories, shoes and intimates right now actually is doing very well. So some of the other categories. And what else was -- price. Happy to talk about price.

當然，珍妮特。我認為我們不想在這裡超前。首先，我們談論的是女裝品類，雖然它是Urban品牌中最大的一部分，也是Urban品牌的領導者，但它肯定不是其中唯一的品類。我們希望我們有機會回到，我有時會在第三季度甚至可能之前稱之為平坦的比較。所以，是的，我們對我們所看到的一些早期讀物感到興奮。我們確實相信，當我們交付我認為商店特別要求的額外庫存並進行我們已經討論過的其他一些更改時，我們可以看到一些不錯的改進。但我不想過度承諾，這對我們來說是一件非常糟糕的事情。我認為，一旦我們對城市女性領域有了更多的控制，那麼我們就可以將其擴展到配飾、鞋子和內衣領域，現在實際上做得很好。還有其他一些類別。還有什麼是——價格。很高興談論價格。

Basically, the price that we have -- at prices that we are commanding have gone up in low double -- low single digits. And some of that is being driven by the receipt pricing and some of it is being driven by lower markdowns and some of it is being driven by mix. So those things in combination have driven very nice AUR increases at the Anthropologie and Free People brands. And we believe that there's opportunity for us to continue to do that by even lower markdowns, but we're not -- we're really not seeing or forecasting really higher initial retail prices.

基本上，我們的價格——我們所要求的價格已經上漲了低兩位數——低個位數。其中一些是由收據定價驅動的，一些是由較低的降價驅動的，還有一些是由混合驅動的。因此，這些因素結合在一起，推動了 Anthropologie 和 Free People 品牌的 AUR 大幅增長。我們相信，我們有機會繼續通過更低的降價來做到這一點，但我們沒有——我們真的沒有看到或預測真正更高的初始零售價格。

And Janet, I just want to add here because I think it's a really important point that both Anthropologie and Free People brands are doing a great job, obviously, from a product and a marketing perspective. They're increasing their overall customer file and their traffic in stores are up nicely. They're sessions on the digital platforms are up nicely as well. So incremental to some of the AUR improvement, we are seeing increased transactions across both brands. And fortunately, I think that we're probably gaining some market share because of the high level of the brands are operating at right now.

珍妮特，我想在這裡補充一點，因為我認為非常重要的一點是，從產品和營銷的角度來看，Anthropologie 和 Free People 品牌顯然都做得很好。他們正在增加整體客戶檔案，商店的客流量也大幅增加。他們在數字平台上的會議也進展順利。因此，隨著 AUR 的一些改善，我們看到兩個品牌的交易量都有所增加。幸運的是，我認為我們可能會獲得一些市場份額，因為目前品牌的運營水平很高。

Our last question will come from the line of Jay Sole from UBS.

我們的最後一個問題將來自瑞銀集團 (UBS) 的傑伊·索爾 (Jay Sole)。

Great. I was just hoping maybe you could elaborate on SG&A a little bit. I think you talked about SG&A dollars up low double digit in Q2. Is the payroll and the marketing, is that sort of onetime? And then I guess on the comments on the second half of the year, would you expect like a normal seasonality for SG&A dollars for like Q3 SG&A dollars to be above Q2? If you could just give us a little bit more color on that, that would be helpful.

偉大的。我只是希望您能詳細說明一下 SG&A。我認為您談到了第二季度的銷售及管理費用 (SG&A) 美元上漲了兩位數。工資和營銷是一次性的嗎？然後我猜想，關於下半年的評論，您是否預計 SG&A 美元的正常季節性，如第三季度的 SG&A 美元將高於第二季度？如果您能為我們提供更多的信息，那將會很有幫助。

Okay, I'm going to ask Melanie to take that question?

好吧，我要請梅蘭妮回答這個問題？

Jay, just wanted to give you a perspective on the year. We do believe that the full year SG&A expense growth will be a few hundred basis points ahead of sales growth but it's going to be a bit bumpy by quarter, and that's really due to the level of bonus accrual in the prior year by quarter. So similar for the full year as the growth in SG&A in the quarter, it's being driven by those compensation costs and marketing and creative to drive increased sales and customer growth. But specifically in Q2, we're guiding the growth rate for SG&A to be in the low double digit, and that's a result of our expectation for higher incentive-based compensation due to better business performance versus prior year.

傑伊，只是想向您提供對這一年的看法。我們確實相信，全年的銷售、管理及行政費用增長將比銷售增長高出幾百個基點，但按季度來看會有點坎坷，這實際上是由於上一季度應計獎金的水平所致。全年的銷售增長、一般行政管理費用的增長與本季度的銷售增長、一般行政費用的增長非常相似，它是由薪酬成本、營銷和創意推動的，以推動銷售增長和客戶增長。但特別是在第二季度，我們將銷售、管理和行政費用的增長率設定為較低的兩位數，這是由於我們預期由於業務績效比上年更好，因此基於激勵的薪酬會更高。

I believe that ends the call. Thank you very much for joining us, and we'll see you in a few months.

我相信通話就結束了。非常感謝您加入我們，我們幾個月後再見。

This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

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。大家，祝你有美好的一天。