Urban Outfitters Inc (URBN) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Urban Outfitters, Inc. Second Quarter Fiscal '24 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to introduce Oona McCullough, Executive Director of Investor Relations. Ma'am, you may begin.

女士們、先生們，美好的一天，歡迎參加 Urban Outfitters, Inc. 24 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想介紹投資者關係執行董事 Oona McCullough。女士，您可以開始了。

Good afternoon, and welcome to the URBN Second Quarter Fiscal 2024 Conference Call. Earlier this afternoon, the company issued a press release, outlining the financial and operating results for the 3- and 6-month period ending July 31, 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 財年第二季電話會議。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 7 月 31 日的 3 個月和 6 個月期間的財務和營運業績。以下討論可能包括前瞻性陳述。請注意，實際結果可能與這些陳述有重大差異。有關可能導致實際結果與預測結果有重大差異的因素的更多資​​訊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 from Richard Hayne, Chief Executive Officer, URBN; Tricia Smith, Global CEO, Anthropologie Group; Frank Conforti, Co-President and COO, URBN; and Melanie Marein-Efron, Chief Financial Officer, URBN. Following that, we will be pleased to address your questions. For more detailed commentary on our quarterly performance and the text of today's conference call, please refer to our Investor Relations website at www.urbn.com. I will now turn the call over to Dick.

在今天的電話會議上，您將聽到 URBN 執行長 Richard Hayne 的演講； Tricia Smith，Anthropologie 集團全球執行長； Frank Conforti，URBN 聯合總裁兼營運長；以及 URBN 財務長 Melanie Marein-Efron。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。我現在將把電話轉給迪克。

Thank you, Oona, and good afternoon, everyone. I'll begin with some brief remarks regarding our second quarter results and then make a few observations concerning our view of the customer and the macro environment. After that, I'll turn the call over to Tricia Smith, who will provide greater detail about Anthropologie's stellar second quarter results. Then Frank and Melanie will add to the analysis of our Q2 results, along with thoughts about our future business.

謝謝你，Oona，大家下午好。我將首先對我們第二季的業績進行一些簡短的評論，然後就我們對客戶和宏觀環境的看法發表一些評論。之後，我會將電話轉給 Tricia Smith，她將提供有關 Anthropologie 第二季度出色業績的更多詳細資訊。然後弗蘭克和梅蘭妮將補充我們第二季業績的分析，以及對我們未來業務的想法。

Simply put, URBN's Q2 results were outstanding. In total, they topped our optimistic expectations. 4 of our 5 brands posted record second quarter revenues. The Anthropologie, Free People and FP Movement brands produced double-digit sales growth in stores and online, with FP Movement leading the way with comp sales of plus 57%. This more than offset a negative comp at the Urban Outfitters brand.

簡而言之，URBN 第二季的業績非常出色。總的來說，它們超出了我們的樂觀預期。我們的 5 個品牌中有 4 個品牌第二季營收創歷史新高。 Anthropologie、Free People 和 FP Movement 品牌在商店和網上實現了兩位數的銷售額增長，其中 FP Movement 以超過 57% 的綜合銷售額領先。這足以抵銷 Urban Outfitters 品牌的負面影響。

Total URBN delivered 8% revenue growth, while total Retail segment comp sales increased by 5%. The newly brand, our apparel rental service, continue to enjoy strong positive response through its business concept and product offering, with year-over-year revenues almost doubling in Q2, driven by an 85% increase in active subscribers. Nuuly contributed $27 million in additional revenues versus last year's second quarter.

URBN 總營收成長 8%，零售部門總銷售額成長 5%。我們的服裝租賃服務這個新品牌透過其經營理念和產品供應繼續獲得強烈的正面反響，在活躍用戶成長 85% 的推動下，第二季營收比去年同期幾乎翻了一番。與去年第二季相比，Nuuly 貢獻了 2,700 萬美元的額外收入。

Total Wholesale segment revenues declined by 5% as some of our larger partners continue to write smaller orders as they seek to operate with leaner inventory levels and grow their penetration of internally generated product. Customer demand for fashion at the Anthropologie, Free People and FP Movement brands remained strong throughout Q2. The customer continued to respond positively to fashion newness and within women's apparel, accessories and shoe categories.

批發部門總收入下降了 5%，因為我們的一些較大的合作夥伴繼續簽訂較小的訂單，因為他們尋求以更精簡的庫存水準運作並提高內部生產產品的滲透率。 Anthropologie、Free People 和 FP Movement 品牌的客戶對時尚的需求在整個第二季度仍然強勁。顧客繼續對女裝、配件和鞋類的時尚新穎做出積極反應。

Effective brand marketing drove robust traffic increases to our website and stores, including strong growth in new customers. Clearly, these brands were pleasing existing customers and capturing additional market share. So far in August, total Retail segment comps are in line with first half results. And we believe total Retail segment comps in Q3 could look very similar to both previous quarters.

有效的品牌行銷推動了我們網站和商店的流量強勁成長，包括新客戶的強勁成長。顯然，這些品牌取悅了現有客戶並佔領了額外的市場份額。八月到目前為止，零售部門的整體業績與上半年業績一致。我們認為，第三季零售部門的整體情況可能與前兩季非常相似。

During the July and August back-to-school period, the Urban Outfitters team in North America succeeded in improving women's and men's apparel comps, especially in stores. But unfortunately, the comp improvement fell short of our goals. In Q2, the apparel teams also improved full price sales, lowered markdown rates and enhanced IMU and MMU, but total brand comp sales remained disappointingly weak.

在 7 月和 8 月返校期間，北美 Urban Outfitters 團隊成功改善了女裝和男裝的競爭，尤其是在商店中。但不幸的是，薪酬的改善未能達到我們的目標。第二季度，服裝團隊也提高了全價銷售，降低了降價率並增強了 IMU 和 MMU，但品牌總銷售仍然疲軟，令人失望。

We've made some progress, but the teams know there is still much work to be done to write the Urban ship. That work is underway but could take longer than we originally expected. Let me now focus your attention on URBN's bottom line results. In Q2, we enjoyed the continued benefit of a pre-COVID like operating environment. Supply chain speed and reliability returned to pre-COVID levels. A speedier supply chain allowed the merchants to keep inventories tight, thus lowering markdowns.

我們已經取得了一些進展，但團隊知道編寫城市飛船還有很多工作要做。這項工作正在進行中，但可能需要比我們最初預期的時間更長的時間。現在讓我將你們的注意力集中在 URBN 的底線結果上。在第二季度，我們持續受惠於新冠疫情前的營運環境。供應鏈速度和可靠性恢復到新冠疫情前的水準。更快的供應鏈使商家能夠保持庫存緊張，從而降低降價。

At the same time, our IMU improvement initiatives, especially the reduction in inbound freight costs, exceeded expectations. Combining better IMU with lower markdown rates resulted in a 400-plus basis point improvement in gross margins and led to the Anthropologie, Free People and FP Movement brands posting very strong second quarter operating results.

同時，我們的IMU改進舉措，尤其是入境貨運成本的降低，超出了預期。更好的 IMU 與更低的降價率相結合，毛利率提高了 400 多個基點，並導致 Anthropologie、Free People 和 FP Movement 品牌發布了非常強勁的第二季度營運業績。

Total URBN operating income soared 54% versus the prior year to $132 million and earnings jumped 72% to $1.10 per share. All indicators currently point to a combination of the robust business we've seen in the first half. Our customer is favoring fashion over price, and (inaudible) is responding nicely to our brand concepts, our assortment and our marketing. With that, I will now turn the call over to Tricia to discuss Anthropologie's second quarter. Tricia?

URBN 總營業收入較前一年飆升 54% 至 1.32 億美元，每股收益躍升 72% 至 1.10 美元。目前所有指標都顯示我們在上半年看到了強勁的業務。我們的客戶更重視時尚而不是價格，並且（聽不清楚）對我們的品牌理念、我們的品種和我們的行銷做出了良好的反應。現在，我將把電話轉給 Tricia，討論 Anthropologie 的第二季。特里西亞？

Thank you, Dick, and good afternoon, everyone. I'm pleased to speak to you today about the Anthropologie Group's strong second quarter performance and our ongoing strategic growth initiatives. First, I'll start with the quarter. The Anthropologie Group delivered an 11% Retail segment comp, marking our tenth consecutive quarter of positive sales comps.

謝謝迪克，大家下午好。我今天很高興與您談論 Anthropologie 集團第二季的強勁業績以及我們正在進行的策略成長計劃。首先，我將從季度開始。 Anthropologie Group 的零售部門業績成長了 11%，這標誌著我們連續第十個季度實現正銷售業績成長。

The quarter's comps were driven by double-digit growth in both stores and digital. We exceeded pre-pandemic traffic, conversion and comps in stores and online. By product category, the team delivered exceptional growth in the apparel, accessories and shoe categories, delivering sales comps over 20%. Our top line performance was accompanied by an even more impressive growth in profit, driven by significant improvement in IMU and continued reductions in markdowns versus last year.

該季度的綜合業績受到商店和數位領域兩位數成長的推動。我們在商店和網路上的流量、轉換率和比較都超過了疫情前。按產品類別劃分，該團隊在服裝、配件和鞋類類別中實現了顯著增長，銷售額增長超過 20%。與去年相比，在 IMU 顯著改善和降價持續減少的推動下，我們的營收表現伴隨著更令人印象深刻的利潤成長。

This year, the brand is running significantly fewer promotional days than we have in the past, allowing us to deliver an impressive 22% growth in our regular price business and a 30% year-over-year increase in operating income. The strength across all apparel and accessory categories has continued in the month of August, which has us optimistic that Anthropologie can continue to drive strong comps in the third quarter.

今年，該品牌的促銷天數比過去明顯減少，這使我們的正常價格業務實現了令人印象深刻的 22% 增長，營業收入同比增長 30%。所有服裝和配件類別的強勁勢頭在 8 月持續，這讓我們樂觀地認為 Anthropologie 可以在第三季度繼續推動強勁的業績成長。

Our outstanding second quarter performance reflects the strategy we developed 2.5 years ago when I arrived at the brand. At that time, sales growth had slowed, particularly in apparel and accessories, and the brand had become too dependent on promotional activity. We knew we had an opportunity to attract more new and younger customers to the brand and offer them a wider range of products, enabling us to gain market share.

我們出色的第二季業績反映了我們 2.5 年前加入品牌時所製定的策略。當時，銷售成長放緩，尤其是服裝和配件，而且該品牌過度依賴促銷活動。我們知道我們有機會吸引更多新的和年輕的客戶加入品牌，並為他們提供更廣泛的產品，使我們能夠獲得市場份額。

The first course of action was aligning and empowering our leadership team around our strategy and goals to best serve our customers. Next, the team set 4 strategic priorities to recapture market share. These 4 priorities are modernize our product; enhance our selling environments, both in stores and online; provide inspirational creative content; and grow our customer base across multiple age demographics.

第一個行動方針是圍繞我們的策略和目標調整併授權我們的領導團隊，以最好地為我們的客戶服務。接下來，團隊制定了 4 項策略重點，以奪回市場佔有率。這 4 個優先事項是使我們的產品現代化；改善我們在商店和網路上的銷售環境；提供鼓舞人心的創意內容；並擴大我們跨多個年齡層的客戶群。

First, modernizing our product. It was essential that we developed the right mix of owned brand fashion, customer favorites and premium brands to help us return to full price growth and offer more fashion-forward product. Our focus has been (inaudible) core categories such as dresses and denim, introduce new concepts that appeal to different end uses, such as an assortment that satisfies for vacation and casual needs and elevate the edit of market brands to modernize the assortment to appeal to a younger customer.

首先，使我們的產品現代化。我們必須將自有品牌時尚、客戶喜愛的產品和優質品牌進行正確的組合，以幫助我們恢復全面價格增長並提供更多時尚前衛的產品。我們的重點是（聽不清楚）核心類別，例如連身裙和牛仔布，引入吸引不同最終用途的新概念，例如滿足度假和休閒需求的品種，並提升市場品牌的編輯，使品種現代化，以吸引一位年輕的顧客。

We began by improving and expanding the own brand assortment, concentrated on our Pilcro (inaudible) Anthropologie label. Today, our own brand product makes up over 60% of the apparel assortment. We have elevated our market brand assortment with the selection of premium brands that are aspirational for the younger customer such as Reformation, Favorite Daughter, Good American and On Running, and we are becoming a go-to destination for these premium brands.

我們首先改進和擴大自有品牌品種，並專注於我們的 Pilcro（聽不清楚）Anthropologie 標籤。如今，我們的自有品牌產品佔服裝品種的 60% 以上。我們透過選擇一些年輕消費者渴望的優質品牌來豐富我們的市場品牌種類，例如 Reformation、Favorite Daughter、Good American 和 On Running，並且我們正在成為這些優質品牌的首選目的地。

Additionally, we expanded apparel adjacent categories such as intimates, accessories and shoes to cater to the different end uses of our customers (inaudible). Moving on to the second and third priorities of enhancing our selling environments and creating inspirational creative content with the goal of becoming an aspirational brand for new and existing customers.

此外，我們還擴展了與服裝相關的類別，例如內衣、配件和鞋子，以滿足客戶的不同最終用途（聽不清楚）。延續第二和第三個優先事項，即改善我們的銷售環境並創造鼓舞人心的創意內容，目標是成為新舊客戶的理想品牌。

We knew the customer wanted to be inspired by complete looks through digitally-enabled experiences and in-store styling. As the product teams distorted into key categories and pushed new fashion trends, the creative teams elevated the imagery and enhanced the store visual experience to properly support the brand's message with an omni experience in mind.

我們知道客戶希望透過數位化體驗和店內造型從完整的外觀中獲得靈感。隨著產品團隊深入關鍵類別並推動新的時尚趨勢，創意團隊提升了形象並增強了商店的視覺體驗，以適當地支持品牌訊息並考慮到全方位體驗。

Today, our teams create some of the most aspirational imagery in our industry. We have invested in creating exceptional omnichannel experiences, and this has translated into the strong traffic and comp sales that brand is experiencing today. Our last priority was to grow our customer base. We wanted to introduce the brand to a new generation of customers while strengthening our relationship with our existing customers.

如今，我們的團隊創造了一些業內最令人嚮往的圖像。我們投資創造了卓越的全通路體驗，這已轉化為該品牌如今所經歷的強勁流量和可比銷售。我們的最後一個優先事項是擴大我們的客戶群。我們希望向新一代客戶介紹品牌，同時加強與現有客戶的關係。

We have invested in marketing to drive customer acquisition, conversion and retention. In North America, during the second quarter, new customer growth surpassed 10%, while active customer spend increased high single digits. We designed new to next marketing strategies that drive repeat purchases by new customers. In the past year, over 30% of new customers have returned to the brand to make a second purchase. Over 60% of the women's new customer growth (inaudible) enhanced own brand product available only at Anthropologie.

我們在行銷方面進行了投資，以推動客戶獲取、轉換和保留。在北美，第二季新客戶成長超過 10%，而活躍客戶支出則達到高個位數成長。我們設計了新的行銷策略，以推動新客戶的重複購買。過去一年，超過30%的新顧客再次購買該品牌。超過 60% 的女性新客戶成長（聽不清楚）增強了僅在 Anthropologie 提供的自有品牌產品。

These customers are 2.5 years younger than our existing core customer. I'll shift gears now to touch on our Home performance. Much of today's call has centered on the opportunities the brand has in apparel and accessories. When I entered the business, these categories had the most opportunity to reignite growth while Home had just delivered multiple years of outsized growth. Although Home was slightly negative this quarter, we see customers pivot from pandemic-driven furniture purchases to more hosting and entertaining focused categories.

這些客戶比我們現有的核心客戶年輕2.5歲。我現在要談談我們的主場表現。今天的大部分電話會議都集中在該品牌在服裝和配件方面的機會。當我進入這個行業時，這些類別最有機會重新激發成長，而家居剛剛實現了多年的超額成長。儘管家居本季略有下降，但我們看到客戶從流行病驅動的家具購買轉向更多以託管和娛樂為重點的類別。

Customers are improving their homes with decorative layers, focusing on table top, glassware, decorative objects and textiles. As they refresh their spaces and prepare to entertain more, we have seen robust growth with our regular price business in gifting and entertaining categories. We have hired a new President of our Anthropologie Home, and we'll be deploying strategic priorities to drive outsized growth and brand awareness in our Home business.

客戶正在透過裝飾層來改善他們的家居，並專注於桌面、玻璃器皿、裝飾品和紡織品。隨著他們更新空間並準備招待更多人，我們看到我們在禮品和娛樂類別中的正常價格業務強勁增長。我們聘請了一位新的 Anthropologie Home 總裁，我們將部署策略重點，以推動我們家居業務的大幅成長和品牌知名度。

I'm confident in our growth opportunities and the team's ability to execute and look forward to sharing more on upcoming calls. In conclusion, the team's focus on our 4 priorities has transformed our business. Looking forward, our strategy is consistent with the work we've done to get here, and our focus remains on top line growth and bottom line expansion.

我對我們的成長機會和團隊的執行能力充滿信心，並期待在即將召開的電話會議上分享更多資訊。總之，團隊對 4 個優先事項的關注改變了我們的業務。展望未來，我們的策略與我們為實現這一目標所做的工作是一致的，我們的重點仍然是收入成長和利潤擴張。

We have plans to increase our apparel and accessories business to $2 billion while building a foundation to double our Home business to $1 billion and will be strategically increasing our global store count to 270 over the next several years. We look forward to providing you with more updates in the future. I'll now turn the call over to Frank.

我們計劃將我們的服裝和配件業務增加到20 億美元，同時奠定基礎，將我們的家居業務翻一番，達到10 億美元，並將在未來幾年戰略性地將我們的全球商店數量增加到270 家。我們期待將來為您提供更多更新。我現在將電話轉給弗蘭克。

Thank you, Tricia, and congratulations to you and the team on a truly outstanding quarter. We are excited to support the brand's continued growth and help the team reach their goals. Now I will discuss URBN's total company results and then give some additional details on our brands.

謝謝你，特里西婭，並祝賀你和團隊度過了一個真正出色的季度。我們很高興能夠支持品牌的持續發展並幫助團隊實現他們的目標。現在我將討論 URBN 公司的整體業績，然後提供有關我們品牌的一些其他詳細資訊。

As Dick noted, the second quarter for URBN performed nicely ahead of our expectations from when we spoke on the May conference call. Total company sales grew by 8% to a second quarter record of $1.3 billion, driven by a total Retail segment comp increase of 5% and a Nuuly segment revenue increase of $27 million. These increases were partially offset by a 5% decline in the Wholesale segment.

正如迪克指出的那樣，URBN 第二季度的表現很好地超出了我們在 5 月電話會議上發言時的預期。在零售部門總銷售額成長 5% 和 Nuuly 部門營收成長 2,700 萬美元的推動下，公司總銷售額成長 8%，達到第二季創紀錄的 13 億美元。這些成長被批發業務 5% 的下降部分抵消。

The growth in Retail segment comp sales was driven by a positive mid-single-digit comp in both the digital and store channels. Nuuly's robust increase in revenue was due to a significant increase in subscribers from the prior year. The Wholesale segment sales decline was due to a decrease at the Free People brand.

零售部門銷售額的成長是由數位和商店通路中個位數的正銷售額所推動的。 Nuuly 營收的強勁成長歸因於訂閱者數量較上一年大幅增加。批發部門銷售額下降是由於 Free People 品牌銷售下降。

Now moving on to gross profit. Gross profit dollars increased by 22%, while gross profit rate improved by 416 basis points. The improvement in gross profit rate was primarily due to significantly improved initial margins and lower markdown rates at all brands. Improved initial margins in the quarter were driven by lower inbound freight costs as well as the early benefits on several of our URBN cross-functional initiatives.

現在轉向毛利。毛利成長了 22%，毛利率提高了 416 個基點。毛利率的改善主要是由於所有品牌的初始利潤率顯著提高以及降價率降低。本季初始利潤率的提高是由於入境貨運成本降低以及我們的幾個 URBN 跨職能計劃的早期效益所推動的。

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. I cannot thank the teams enough for their continued focus and results in driving improved IMU and lower markdown rates.

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。我對這些團隊的持續關注和在推動改進 IMU 和降低降價率方面取得的成果表示感謝。

Next, I want to briefly touch on inventory. Total inventory was down 16%, with Retail segment comp inventory down 2% and Wholesale segment inventory down 32%. We have remained committed to managing inventory variances below our sales growth rates, and we are delivering on our commitment. We believe our improved inventory to sales ratio is one of the primary drivers of our lower markdown rates.

接下來，我想簡單談談庫存。總庫存下降 16%，其中零售部門庫存下降 2%，批發部門庫存下降 32%。我們仍然致力於將庫存差異管理在低於銷售成長率的水平，並且我們正在兌現我們的承諾。我們相信，庫存與銷售比率的改善是我們降低降價率的主要驅動力之一。

As a result of our Q2 record sales as well as significant improvement in gross margin, our operating profit increased 54% from the previous year to $132 million with earnings per share increasing by 72% to $1.10 per share. Earnings per share growth was primarily driven by healthy operating profit growth and additionally benefited from a lower effective tax rate versus last year.

由於第二季銷售創紀錄以及毛利率顯著提高，我們的營業利潤比上年增長 54% 至 1.32 億美元，每股收益增長 72% 至每股 1.10 美元。每股盈餘成長主要得益於健康的營業利潤成長，此外也受惠於較去年較低的有效稅率。

Since Tricia has already provided an update on Anthropologie, I will now provide more details for the remaining brands, starting with the Free People Group. This quarter, Free People delivered historically exceptional results, once again achieving record sales and profits in the second quarter. Retail segment comps at the Free People Group accelerated from the first quarter and finished the quarter at a robust 27% Retail segment comp increase.

由於 Tricia 已經提供了 Anthropologie 的最新信息，我現在將為其餘品牌提供更多詳細信息，從 Free People Group 開始。本季度，Free People 取得了歷史性的卓越業績，第二季銷售額和利潤再次創下歷史新高。 Free People Group 的零售部門比較從第一季開始加速，本季結束時零售部門比較強勁成長了 27%。

Within the group, the Free People brand produced a strong 22% comp and FP Movement brand produced an impressive 57% 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.

在該集團內，Free People 品牌產生了 22% 的強勁競爭，而 FP Movement 品牌產生了令人印象深刻的 57% 的競爭。總零售部門的競爭是由商店和數位通路的兩位數競爭所推動的。這些兩位數的業績成長是由兩個通路的強勁流量成長所推動的，部分原因是出色的行銷執行力以及所有主要產品類別全價銷售增加所推動的平均單位零售成長。

Total customer growth also reached double-digit increases for the quarter for both the Free People and FP Movement brands. The Free People Group's improvement in sales was only outdone by their impressive surge in profitability for the quarter. The strength of the Free People Group's assortments, marketing campaigns and store experience have continued into the early fall.

Free People 和 FP Movement 品牌本季的總客戶成長也達到了兩位數的成長。 Free People Group 銷售業績的改善絲毫不遜於該季度獲利能力的大幅成長。 Free People Group 的產品類型、行銷活動和商店體驗的優勢一直持續到初秋。

We believe the Free People Group's Retail segment performance will continue to be nicely positive in the third quarter. Free People Wholesale segment sales decreased 7% during the second quarter. The decrease in sales was a result of weakness in department store accounts, partially offset by growth in specialty store accounts. Although Wholesale sales remain challenged, profitability has returned to a healthy level.

我們相信 Free People Group 的零售部門業績在第三季將繼續保持良好的積極勢頭。 Free People Wholesale 部門的銷售額在第二季下降了 7%。銷售額下降是由於百貨公司帳戶疲軟造成的，但部分被專賣店帳戶的成長所抵消。儘管批發銷售仍面臨挑戰，但獲利能力已恢復到健康水準。

We believe Wholesale segment sales could decline for the remainder of the year due to continued focus on the right balance of account partners and for the brand while the rate of profit could remain in a healthy low double-digit range. Now moving on to Urban Outfitters. Urban recorded a negative 14% Retail segment comp in Q2.

我們認為，由於繼續關注客戶合作夥伴和品牌的適當平衡，批發部門的銷售額在今年剩餘時間內可能會下降，而利潤率可能會保持在健康的低兩位數範圍內。現在轉向 Urban Outfitters。 Urban 在第二季零售部門的業績年減了 14%。

UO's negative comp was the result of disappointing performance in North America and a slightly negative comp in Europe. In North America, comp store sales were high single-digit negative, while the digital channel comp sales were double-digit negative. In Europe, the weakness was concentrated in the U.K., while the rest of Europe continued to see positive Retail segment comps.

UO 的負面業績是北美業績令人失望以及歐洲業績略有下滑的結果。在北美，同業商店銷售額出現高個位數負數，而數位通路同業銷售額則出現兩位數負數。在歐洲，疲軟的情況主要集中在英國，而歐洲其他地區的零售業務繼續呈現積極的表現。

As Dick noted earlier, we did see improvement in North America's women's and men's apparel in the back-to-school season versus last year, but we still know we can execute better, and we will need more time to drive the overall improvement we want. Next, I will touch on the Nuuly business. The brand continued to deliver strong year-over-year subscriber growth with active subs increasing 84% to last year.

正如迪克早些時候指出的那樣，我們確實看到北美的男女服裝在返校季節與去年相比有所改善，但我們仍然知道我們可以執行得更好，並且我們需要更多時間來推動我們想要的整體改進。接下來我要講Nuuly的業務。該品牌訂閱用戶持續保持強勁的同比增長，活躍訂閱用戶比去年增加了 84%。

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, and we continue to believe Nuuly will record its first profitable quarter later this year.

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，我們仍然相信 Nuuly 將在今年晚些時候實現第一個盈利季度。

Lastly, I want to congratulate the teams on the opening of our new state-of-the-art distribution and fulfillment facility in Kansas City, Kansas. We believe this facility will improve our overall operating efficiency, reduce our average cost of consumer delivery expense as well as increase our delivery speed to our customers.

最後，我要祝賀團隊在堪薩斯州堪薩斯城開設了我們最先進的新分銷和履行設施。我們相信，該設施將提高我們的整體營運效率，降低消費者交付費用的平均成本，並提高我們向客戶交付的速度。

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財務長 Melanie Marein-Efron。

Thank you, Frank, and good afternoon, everyone. Now I will discuss our thoughts on the third quarter and fiscal year '24 financial performance. We are pleased that overall consumer demand has remained strong to start the quarter, and we're planning for this strength to continue throughout the third quarter.

謝謝弗蘭克，大家下午好。現在我將討論我們對第三季和 24 財年財務表現的看法。我們很高興看到本季開始的整體消費者需求仍然強勁，我們計劃在整個第三季度繼續保持這種強勁勢頭。

Right now, we believe third quarter total company sales growth could be in the high single digits. Sales growth in Q3 could result from mid-single-digit growth in Retail segment comp sales and high double-digit growth of Nuuly segment sales versus last year. Our growth in the Retail and Nuuly segments is likely to be partially offset by a sales decline in our Wholesale segment.

目前，我們認為第三季公司總銷售額成長可能會達到較高的個位數。第三季的銷售成長可能源自於零售部門銷售額的中個位數成長以及 Nuuly 部門銷售額與去年相比的高兩位數成長。我們零售和 Nuuly 部門的成長可能會被批發部門的銷售額下降部分抵消。

Now on to gross profit margin. We believe URBN's gross margin rate for the third quarter could improve by more than 400 basis points compared to the prior year third quarter, similar to the improvement which we realized in Q2. 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.

現在談談毛利率。我們認為URBN第三季的毛利率可能比去年第三季增加400多個基點，與我們在第二季實現的改善類似。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所帶來的初始產品利潤率提高所致。

An improved supply chain is allowing us to bring in product closer to demand. As a result of well-controlled inventory and a healthier supply chain, we believe that there could be lower markdowns in the third quarter compared to prior year third quarter.

改善的供應鏈使我們能夠提供更接近需求的產品。由於庫存控制良好和供應鏈更健康，我們認為第三季的降價幅度可能低於去年第三季。

Now moving on to SG&A expenses. Based on our current sales performance and plan, we believe SG&A growth for the third 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.

現在轉向 SG&A 費用。根據我們目前的銷售業績和計劃，我們相信第三季的銷售及管理費用成長將以低兩位數成長。我們計劃的銷售、管理及管理費用成長主要是由於公司業績改善、職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。

In addition, we intend to increase marketing expense to drive incremental customer growth at Free People and Anthropologie. This could result in SG&A rate deleverage 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 our business is performing.

此外，我們打算增加行銷費用，以推動 Free People 和 Anthropologie 客戶的增量成長。這可能會導致SG&A利率較去年去槓桿化。像往常一樣，如果銷售業績出現波動，我們會維持一定程度的可變 SG&A 支出，我們可以根據業務表現進行上下調整。

While we believe SG&A growth could outpace sales growth in Q3, we also believe that SG&A expense growth in the fourth quarter will be more closely aligned with sales growth. We are currently planning our effective tax rate to be approximately 25% for the third quarter and full year.

雖然我們認為第三季的銷售成長可能超過銷售成長，但我們也認為第四季的銷售成長將與銷售成長更加緊密地一致。我們目前計劃第三季和全年的有效稅率約為 25%。

Now moving on to inventory. We have made significant progress this year controlling our inventory to sales ratio. We believe that inventory levels in the third quarter could grow at a rate below sales growth. The team continues to make progress speeding up inventory turns and our targeting product turns close to pre-pandemic levels at most of our brands by the end of fiscal year '24.

現在轉向庫存。今年我們在控制庫存與銷售比率方面取得了重大進展。我們認為第三季庫存水準的成長速度可能低於銷售成長速度。團隊繼續在加快庫存週轉方面取得進展，到 24 財年末，我們大多數品牌的目標產品將接近疫情前的水準。

Capital expenditures for the fiscal year are planned at approximately $230 million. The spend is primarily related to investments in additional distribution facilities. Earlier this month, we opened our highly automated omni fulfillment facility in Kansas City, Kansas. In addition, we are investing in a new rental fulfillment facility in Missouri within the Kansas City region. We are targeting to open this facility at the beginning of fiscal year '25.

本財年的資本支出計畫約為2.3億美元。支出主要與額外配送設施的投資有關。本月早些時候，我們在堪薩斯州堪薩斯城開設了高度自動化的全方位履行設施。此外，我們正在密蘇裡州堪薩斯城地區投資建造一個新的租賃履行設施。我們的目標是在 25 財年年初開設該設施。

Lastly, we'll be opening approximately 28 new stores and closing approximately 21 stores during fiscal year '24. 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 over to Dick.

最後，我們將在 24 財年開設約 28 家新店並關閉約 21 家店。提醒一下，上述內容並不構成預測，而只是我們當下觀點的反映。該公司不承擔任何更新前瞻性陳述的義務。現在我很高興將電話轉回給迪克。

Thank you, Mel. In conclusion, as you've heard from Mel and Frank, we're confident about our prospects for the remainder 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, as demonstrated by our performance in the first 2 quarters.

謝謝你，梅爾。總而言之，正如您從 Mel 和 Frank 那裡聽到的那樣，我們對 2024 財年剩餘時間的前景充滿信心。我們有 4 個品牌正在以高水平執行並贏得市場份額。除了營收成長之外，我們的利潤率也大幅回升，前兩季的業績就證明了這一點。

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. With their amazing dedication and creativity, they produced a truly outstanding quarter, and I thank them.

如果沒有我們的品牌和共享服務領導者、他們的商人、創意和營運團隊以及我們全球 24,000 名員工的辛勤工作，這一切都是不可能實現的。憑藉他們驚人的奉獻精神和創造力，他們創造了一個真正出色的季度，我感謝他們。

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 one per caller, so we have time to recognize more of your colleagues. Thank you, and now for your questions.

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。我們準備好的演講到此結束。在我轉接電話詢問您的問題之前，我提醒您請將您的問題留給每個來電者一個，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 comes from the line of Lorraine Hutchinson with Bank of America.

（操作員說明）我們的第一個問題來自洛林·哈欽森 (Lorraine Hutchinson) 與美國銀行的電話。

I was hoping you could just elaborate on your comments about the Urban Outfitters brand turn taking longer than expected? And then with that, talk to your comfort with the level of incoming receipts at the brand for the remainder of the year?

希望您能詳細闡述一下您對 Urban Outfitters 品牌轉變時間比預期要長的看法嗎？然後，談談您對該品牌今年剩餘時間的收入水平感到滿意嗎？

Sheila, would you like to take that?

希拉，你願意接受嗎？

Sure. I think at the last call, we talked about apparel being the focus, and it certainly was both the men's and women's apparel assortment and has progressively got better throughout the quarter. And in August, we are sitting at a positive comp in our store with stronger MMU. And what's taking a little longer is now what we did in apparel needs to be done to the accessory shoe and home business.

當然。我認為在上次電話會議中，我們談到服裝是焦點，當然是男裝和女裝類別，並且在整個季度中逐漸變得更好。 8 月份，我們的商店中的 MMU 更加強勁，處於積極的競爭狀態。現在需要更長的時間的是我們在服裝領域所做的事情需要在配件鞋和家居業務上進行。

And then we need to get our DTC business right sized. It's been heavily reliant on promotional activity. And we don't think this is a long-term strategy that the brand needs to progress forward. So that is what I'm referring to as the long-term opportunity to change the trajectory of the brand to help.

然後我們需要調整 DTC 業務的規模。它嚴重依賴促銷活動。我們認為這不是該品牌需要向前發展的長期策略。這就是我所說的改變品牌發展軌跡的長期機會。

And I believe our inventory levels are with the speed model that we've been allowed to get back to an apparel will be able to hold the same rules of engagement that URBN is that sales should outpace inventory comps.

我相信我們的庫存水準與我們被允許回到服裝的速度模型將能夠保持與 URBN 相同的參與規則，即銷售應該超過庫存比較。

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

我們的下一個問題來自巴克萊銀行的 Adrienne Yih。

Congratulations. It's great to see all 3 brands kind of in various stages of repair (inaudible).

恭喜。很高興看到所有 3 個品牌都處於不同的維修階段（聽不清楚）。

Thank you, Adrienne.

謝謝你，艾德麗安。

You're welcome. On the merchandise margin cycle. So within each of those 3 brands, I'm wondering maybe Frank or Melanie, if you can remind us sort of where each of the brand is in their kind of promotional cycle relative to normal? So for example, Anthropologie, while very clean, are they still at above average and still room to grow?

不客氣。關於商品利潤週期。因此，在這三個品牌中，我想知道弗蘭克或梅蘭妮，您能否提醒我們每個品牌相對於正常的促銷週期處於什麼位置？例如，Anthropologie 雖然非常乾淨，但它們是否仍然高於平均水平並且仍有成長空間？

And then, for example, like Urban Outfitters, are they at new lows? And so should we think about kind of low-hanging fruit in terms of their merchandise margin half year?

然後，例如，像 Urban Outfitters 一樣，它們是否處於新低點？那麼，我們是否應該考慮一下半年的商品利潤率呢？

Adrienne, I can take a stab at that, and then certainly, Tricia and Sheila can correct me and add any more color if they want. I think all of the brands, which is great to see, are driving healthy improvement in IMU and markdown rate. The IMU improvement across all brands is fairly consistent and is, I want to say, not quite at fiscal -- pre-pandemic levels, but certainly is approaching there. And you're seeing that benefit driven not just by lower inbound freight expenses now as those expenses have normalized, you're honestly starting to see several of our URBN cross-functional initiatives really start to take hold.

艾德麗安，我可以嘗試一下，然後特里西亞和希拉當然可以糾正我，並根據需要添加更多顏色。我認為所有品牌都在推動 IMU 和降價率的健康改善，這是很高興看到的。所有品牌的 IMU 改進都相當一致，我想說，雖然還沒有達到大流行前的財政水平，但肯定正在接近這個水平。您會看到，隨著這些費用已經正常化，這種效益不僅是由入境貨運費用的降低所驅動的，老實說，您開始看到我們的一些 URBN 跨職能計劃真正開始發揮作用。

And that's just a credit to the sourcing teams and the brands for their execution there. We still believe that goal that we set almost 2 years ago of 500 basis points of improvement in IMU versus Q4 of fiscal '22, we will be able to achieve next year, and we think we're actually going to be pretty darn close when we get to Q4 of this year.

這只是對採購團隊和品牌執行力的讚揚。我們仍然相信，我們在大約2 年前設定的目標，即IMU 與22 財年第四季相比提高500 個基點，明年我們將能夠實現，而且我們認為，到那時我們實際上已經非常接近了我們到了今年第四季。

Again, all of the brands on the markdown side as well are favorable on a year-over-year basis. Obviously, you've got the really strong sales performance at Anthropologie, Free People and FP Movement brands as well as better inventory control as the supply chain has improved across all 3 brands, which is benefiting the businesses.

同樣，降價方面的所有品牌也逐年受到歡迎。顯然，Anthropologie、Free People 和 FP Movement 品牌的銷售業績非常強勁，而且隨著這三個品牌的供應鏈得到改善，庫存控制也得到了改善，這對企業有利。

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

我們的下一個問題來自花旗銀行的 Paul Lejuez。

Can I just go back to the answer to Adrienne's question. You think you said something was running positive August to date. Were you talking about the Urban Outfitters brand specifically? Or were you referring to overall URBN?

我可以回到艾德麗安問題的答案嗎？你認為你說過八月迄今為止有些事情進展順利。您具體是在談論 Urban Outfitters 品牌嗎？還是你指的是整體的URBN？

And then the question is, you had, I think, 21 closed stores to date. Curious what you're thinking about future store closing, specifically at Urban and how that might break down between Urban locations, meaning city locations versus suburban or lifestyle versus mall?

接下來的問題是，我認為到目前為止，您已經關閉了 21 家商店。好奇您對未來商店關閉的想法，特別是在城市，以及城市地點之間的關係如何劃分，即城市地點與郊區或生活方式與購物中心？

I'll clarify the first part of the question around Urban Outfitters. Urban women's and men's apparel brands are sitting positive within our store businesses month to date, and this is a continuation of the improvement that we saw throughout Q2. And we still have a great deal of improvement to do within our accessory and home and shoe businesses. Accessories, we anticipate this turn happening in Q4, where Home might take a little bit longer.

我將澄清有關 Urban Outfitters 的問題的第一部分。本月迄今為止，城市男女服裝品牌在我們的商店業務中表現良好，這是我們在整個第二季度看到的改善的延續。我們的配件、家居和鞋類業務仍有大量改進工作要做。配件方面，我們預計這一轉變將在第四季度發生，而家居產品可能需要更長的時間。

Paul, about the store closure and specifically with Urban, but it actually applies to all 3 brands. When stores come up for renewal, we look at them very closely and try to ascertain if we have an opportunity to make money at those stores over the next 5 years, that's a typical renewal date. And if we do, then we sign up for them. If we don't, then we pass. And I think it's that simple.

Paul，關於商店關閉，特別是 Urban，但它實際上適用於所有 3 個品牌。當商店需要更新時，我們會非常仔細地觀察它們，並嘗試確定我們是否有機會在未來 5 年內在這些商店中賺錢，這是典型的更新日期。如果我們這樣做了，我們就會報名參加。如果我們不這樣做，那麼我們就通過了。我認為事情就是這麼簡單。

And as your comment about city or non-city locations, a number of cities, as you might imagine, it's been a little bit more difficult in the last few years to make money. So we are closing more city locations (inaudible) on a percent basis. But we treat them equally. Some of the city locations are still doing quite well and we won't close them. So I think that's basically how we look at it.

正如您對城市或非城市地點的評論，正如您可能想像的那樣，許多城市在過去幾年賺錢有點困難。因此，我們將按百分比關閉更多城市地點（聽不清楚）。但我們平等對待他們。城市中的一些地點仍然做得很好，我們不會關閉它們。所以我認為這基本上就是我們看待它的方式。

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

我們的下一個問題來自 Alex Straton 與摩根士丹利的對話。

Congrats on a nice quarter. Just 2 for me. One is on Anthropologie and Free People. I'm just wondering how you think about the sustainability of the top line strength there? I think you said both continued at 2Q levels in the third quarter. So I just wanted to confirm that. And then secondly, just on gross margin. I'm curious if you could outline kind of the levers or puts and takes there as you thought through the back half guide?

恭喜您度過了一個美好的季度。對我來說只有2個。一是關於人類學和自由人的。我只是想知道您如何看待那裡營收實力的可持續性？我想你說過第三季兩者都繼續保持在第二季的水平。所以我只是想確認一下。其次，就是毛利率。我很好奇您是否可以在後半部指南中概述一下槓桿或放置和取出的情況？

Okay. I'm going to ask Tricia to talk about how she looks at sustainability of our results in Anthropologie.

好的。我將請 Tricia 談談她如何看待我們在人類學領域的成果的可持續性。

Alex, we have a really incredible team that's really passionate about serving our customers, one of the best that I've worked across (inaudible) career. And I think as we continue to introduce more customers to our brands, we're really focused on ensuring that they come back to shop with us with our new to next strategy. And we've been really consistently acquiring customers over the past 2 years and are confident in our strategy to continue that growth.

亞歷克斯，我們擁有一支非常令人難以置信的團隊，他們非常熱衷於為客戶服務，這是我在（聽不清楚）職業生涯中工作過的最好的團隊之一。我認為，隨著我們繼續向更多客戶介紹我們的品牌，我們真正專注於確保他們透過我們的新策略再次與我們一起購物。在過去的兩年裡，我們一直在持續獲取客戶，並對我們繼續成長的策略充滿信心。

So our teams stay incredibly close to our customers. They're very good at identifying new opportunities, and we'll continue to leverage the strategic priorities that have contributed to the growth that we've had over the last couple of years and feel confident that we'll be able to continue that.

因此，我們的團隊與客戶保持著極為緊密的聯繫。他們非常善於發現新的機會，我們將繼續利用有助於我們過去幾年成長的策略優先事項，並對我們能夠繼續這一點充滿信心。

Great. And gross margin, Frank?

偉大的。弗蘭克，毛利率呢？

Yes, I can talk to gross profit margin, and then maybe Sheila can talk about the confidence on Free People side. So as it relates to leverage for the back half of the year, I think I'll start with IMU, which we've seen nice gains in the first half, and we would basically anticipate to see very similar gains in the back half of the year. Again, that's being driven by lower inbound freight expenses as well as several of our URBN cross-functional initiatives.

是的，我可以談談毛利率，然後希拉也許可以談談對 Free People 的信心。因此，由於它與下半年的槓桿有關，我想我將從 IMU 開始，我們在上半年看到了不錯的收益，並且我們基本上預計在下半年會看到非常相似的收益那一年。同樣，這是由較低的入境貨運費用以及我們的 URBN 跨職能舉措推動的。

With a lot of our orders on and that trend in place, I think we feel pretty confident about the IMU improvement on the back half of the year. And then secondarily is the markdown rate improvement. And I think as Tricia and I know Sheila will speak to the strength of the business at Anthropologie and Free People, that leaves us with, I think, a pretty high level of confidence that we'll see markdown rate improvement over the back half of the year at those brands as well as then contributing to lower inventory, better positioned inventory and better inventory control across all brands with the supply chain improving, I think that gives us confidence from markdown rate improvement as well across all brands.

隨著我們的大量訂單和這種趨勢的形成，我認為我們對今年下半年 IMU 的改進非常有信心。其次是降價率的提高。我認為，特里西亞和我知道希拉將談論 Anthropologie 和 Free People 的業務實力，這讓我們充滿信心，我們將看到降價率在下半年有所改善。隨著供應鏈的改善，這些品牌的年度業績以及隨後有助於降低所有品牌的庫存、更好的庫存定位和更好的庫存控制，我認為這讓我們對所有品牌的降價率改善充滿信心。

Sheila?

希拉？

Great. On Free People, we have continued to grow and similar to Anthropologie, we've been able to retain our core customer and add new customers. And so I feel pretty confident that the brand is going to be able to continue to gain market share. It has an initiative to gain market share within the denim and fashion structured bottoms business, which I think we're executing to at an accelerated level currently.

偉大的。在 Free People 上，我們不斷發展，與 Anthropologie 類似，我們能夠保留我們的核心客戶並增加新客戶。因此，我非常有信心該品牌將能夠繼續獲得市場份額。它有一項計劃，旨在在牛仔布和時尚結構化下裝業務中獲得市場份額，我認為我們目前正在加速執行該計劃。

And then we -- it would be remiss not to mention FP Movement as part of the total Free People brand lifestyle. This is at early stages of the growth, but robustly comping, and we've laid out our $1 billion marker for go forward.

然後我們——如果不提及 FP 運動是 Free People 品牌生活方式的一部分，那就太失職了。該公司正處於成長的早期階段，但競爭強勁，我們已經為未來設定了 10 億美元的目標。

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

我們的下一個問題來自摩根大通的馬修·博斯（Matthew Boss）。

Congrats on a nice quarter.

恭喜您度過了一個美好的季度。

Thank you.

謝謝。

So Dick, on the continued sales momentum in August, any notable categories or areas of the product assortment to really call out maybe between occasion wear and casual, where we stand with those 2 curves? And then just given the number of moving parts, is there any way you could just lay out quarter-to-date comps by banner or where we stand today in August so far?

那麼，迪克，關於 8 月份持續的銷售勢頭，在場合服裝和休閒服裝之間，產品分類中是否有任何值得注意的類別或領域真正值得關注，我們對這兩條曲線的立場是什麼？然後，考慮到移動部件的數量，有沒有什麼方法可以透過橫幅或我們目前在 8 月的情況來展示季度至今的比較？

Sure. I'll do the first part. But if you sort of tell me on your question, do you want a specific brand? Are you talking about the Urban brand? Or are you talking about in general?

當然。我會做第一部分。但如果你告訴我你的問題，你想要一個特定的品牌嗎？你說的是Urban品牌嗎？還是你說的是一般情況？

The second part, if you could just lay out the 3 brands and where quarter-to-date for same-store sales?

第二部分，您是否可以列出 3 個品牌以及季度至今的同店銷售額？

The first part, I think, would just be interesting in general, like what you're seeing between occasion wear relative to the more casual categories.

我認為，第一部分總體來說會很有趣，就像你在場合穿著相對於更休閒類別之間看到的那樣。

I got it. Well, when we look at the brands individually, the comps are very similar to what we experienced in Q2. Anthropologie is running just a tad ahead of where the Q2 comp came in. The Free People brand is essentially right on target to where they were in Q2, amazingly enough because they were so elevated in Q2. And the Urban Outfitters brand, I've got a breakdown. Urban Outfitters in North America actually is seeing benefits that we -- Sheila discussed earlier, with comps in apparel getting better.

我得到了它。好吧，當我們單獨查看這些品牌時，它們的比較與我們在第二季度經歷的非常相似。 Anthropologie 的運行僅比第二季度的排名領先一點。Free People 品牌基本上達到了第二季度的目標，令人驚訝的是，因為他們在第二季度的排名如此之高。至於 Urban Outfitters 品牌，我已經崩壞了。北美的 Urban Outfitters 實際上看到了我們 Sheila 之前討論過的好處，即服裝行業的競爭越來越好。

However, Urban Outfitters in Europe is actually seeing a decrease in comps, and we attribute that to a very, very difficult environment. So we don't expect that to get too much better anytime real soon. So if you add all those up (inaudible) it's almost exactly where we were in Q2 within a couple tens of basis points. So I think we're pretty confident that Q3 will look very similar to Q2.

然而，歐洲的 Urban Outfitters 的表現實際上正在下降，我們將其歸因於非常非常困難的環境。因此，我們預計這種情況不會很快得到太大改善。因此，如果將所有這些加起來（聽不清楚），它幾乎與我們在第二季度的情況相差幾十個基點。所以我認為我們非常有信心第三季將與第二季非常相似。

Now I almost have to talk about this by brand, and I kind of hate to do that because the experts of the brand are sitting right next to me. But in Anthropologie, all of their categories performed very well, whether it was -- it's sort of what we usually talk about as their more polished look or whether it's the more casual look or even the vacation look, all of them have done well.

現在我幾乎必須按品牌來談論這個問題，但我有點討厭這樣做，因為該品牌的專家就坐在我旁邊。但在Anthropologie中，他們所有的品類表現都非常好，無論是——我們通常所說的更精緻的造型，還是更休閒的造型，甚至是度假造型，他們都表現得很好。

When I look at the shoe assortment as an example, heels, flats, sneakers, they're all boots, they're all doing well, and they're all driving double-digit comps. So I think all looks seem to be doing well, and I can't call out any one particular look as being overly strong. And I would say the same is true in Free People brand. All of their product and product categories delivered significant double-digit comps.

當我以鞋子分類為例時，高跟鞋、平底鞋、運動鞋，它們都是靴子，它們都表現良好，而且它們都在推動兩位數的競爭。所以我認為所有的造型似乎都做得很好，而且我不能說任何一種造型太過強烈。我想說 Free People 品牌也是如此。他們所有的產品和產品類別都實現了兩位數的大幅成長。

So I can't really call out anything particular there. As Sheila did -- their denim is performing quite well right now, but their net comps are performing extremely well (inaudible). So it is really across the board. With Free People Movement, the casual is doing slightly better than the performance, but they're both -- I mean, after all, their comps are 57%. So you can just imagine they're both incredibly strong.

所以我真的不能指出那裡有什麼特別的。正如 Sheila 所做的那樣，他們的牛仔布現在表現得相當好，但他們的網布表現也非常好（聽不清楚）。所以這確實是全面的。在 Free People Movement 中，休閒活動比表演活動稍好一些，但他們都是——我的意思是，畢竟他們的比較是 57%。所以你可以想像他們都非常強大。

Our next question comes from the line of Marni Shapiro with The Retail Tracker.

我們的下一個問題來自 Marni Shapiro 與 The Retail Tracker 的對話。

Congratulations on a great quarter and to the UO team for turning the corner there.

恭喜這個季度的出色表現，也恭喜 UO 團隊扭轉了局面。

Thank you.

謝謝。

Tricia, I want to dig in a little bit at Anthropologie because of the increased marketing spend there and the fact that (inaudible) has been flooded with that amazing falling for Anthro and all the posts. So can you talk a little bit about it? Are you getting in -- it sounds like you're getting in the younger customer. I'm curious if this customer is visiting more? Are they spending about the same because typically a younger customer might spend a little less.

Tricia，我想深入了解一下 Anthropologie，因為那裡的營銷支出增加了，事實上（聽不清楚）已經充斥著對 Anthro 和所有帖子的驚人迷戀。那你能談談這個嗎？你加入了嗎——聽起來你正在加入年輕的顧客。我很好奇這個顧客來得更多嗎？他們的支出是否大致相同，因為通常年輕的顧客可能會少花一點錢。

I'm also curious if the marketing push is global to raise brand awareness as you open more stores, are you looking to open more stores internationally? And then I just have one follow-up on Anthropologie.

我還很好奇，隨著您開設更多商店，行銷活動是否會在全球範圍內提高品牌知名度，您是否打算在國際上開設更多商店？然後我就在《人類學》上做了一篇後續報導。

Sure. Thank you, Marni. I'll try to take them one at a time.

當然。謝謝你，瑪尼。我會嘗試一次拿一個。

Marni, that's quite a one.

瑪尼，真是太棒了。

I'm not usually like that, but this (inaudible) Free People runs, which is flooding my (inaudible).

我通常不是這樣的，但是這個（聽不清楚）自由人運行，它淹沒了我的（聽不清楚）。

No, we appreciate it. Yes, our digital marketing team is really doing a fantastic job driving traffic with DTC and mid double-digit traffic growth as far as high single-digit traffic. I think the -- that, coupled with the improvements in our site experience and service in our stores, we're maintaining conversion. And so we're getting some real benefit and the additional marketing spend.

不，我們很感激。是的，我們的數位行銷團隊確實做得非常出色，透過 DTC 和中等兩位數的流量成長直至高個位數的流量來推動流量。我認為，再加上我們網站體驗和商店服務的改進，我們正在保持轉換。因此，我們獲得了一些真正的好處和額外的行銷支出。

Thank you for noticing we just launched yesterday, our Anthro Global. It is a global campaign (inaudible) campaign is one of our largest marketing campaigns to date. And our creative assets, (inaudible) strategy that's inclusive of out-of-home advertising billboards in Times Square and L.A., Wild Posting. So a big push for us. It's one of our biggest. And it will also be our largest digital TV campaign to date and really robust social media coverage, which is fun to see that you're seeing.

感謝您注意到我們昨天剛推出了 Anthro Global。這是一項全球活動（聽不清楚），也是我們迄今為止最大的行銷活動之一。我們的創意資產（聽不清楚）策略包括時代廣場和洛杉磯的戶外廣告看板、Wild Posting。這對我們來說是一個很大的推動。這是我們最大的之一。這也將是我們迄今為止最大的數位電視活動，以及真正強大的社交媒體報道，看到您所看到的一切很有趣。

And in-store events and more, and I think the campaign itself is really intended for us to be able to build both connectivity and loyal community and while reaching this kind of new eager and excited audience. Our new customer, I think, through this kind of new to next strategy that our team has deployed around, engaging a second purchase out of our new customers are younger, they're spending slightly less, but not as much less as I think you would think as our core customers.

還有店內活動等等，我認為活動本身的真正目的是讓我們能夠建立聯繫和忠誠的社區，同時接觸到這種新的渴望和興奮的受眾。我認為，我們的新客戶透過我們團隊部署的這種新的下一個策略，吸引第二次購買的新客戶更年輕，他們的支出略少，但沒有我想像的那麼少會認為我們的核心客戶。

Really happy with the growth of our customer count, customer spend and then our retained customer is spending more as well. So I think the marketing content is resonating kind of across multiple age demographics, both our retained and our new customers, and we're really, really pleased with the results.

我們對客戶數量、客戶支出的成長感到非常滿意，而且我們保留的客戶的支出也增加了。因此，我認為行銷內容在多個年齡層的人群中產生了共鳴，無論是我們的保留客戶還是新客戶，我們對結果非常非常滿意。

That's amazing. And I can just follow up one quick one on Anthro because it sounds like the footwear is doing well. I'm curious if you see room to grow some of the other -- some high-margin categories like accessories, jewelry and handbags? They've all looked very good in the store. I'm curious if you still see room for growth in those categories?

太棒了。我可以快速跟進 Anthro，因為聽起來這款鞋的表現不錯。我很好奇您是否認為其他一些高利潤類別（如配件、珠寶和手袋）還有發展空間？他們在商店裡看起來都非常好。我很好奇您是否仍然認為這些類別還有成長空間？

Yes. Thank you. We have really had a concerted effort in growing the accessories category and shoes. We, particularly in stores, have been testing some distorted category expansions to be able to see what that can do and it has proven incredibly successful. In some cases, it's driving a full basis point or 2 of comp for the entire box of the store with that expansion of accessories.

是的。謝謝。我們在配件品類和鞋子的發展方面確實做出了一致的努力。我們，特別是在商店裡，一直在測試一些扭曲的品類擴展，以便能夠看到它能起到什麼作用，事實證明它非常成功。在某些情況下，透過配件的擴展，它可以為商店的整個盒子帶來一個完整的基點或 2 個基點的補償。

So high margin in accessories improving our total overall IMU as well as knit tops and a lot of high-margin kind of opening price point categories are allowing us, I think, to exceed our expectations on both customer acquisition as well as margin expansion. So we feel really good about it.

我認為，配件的高利潤率提高了我們的整體 IMU 以及針織上衣和許多高利潤率的開放價格點類別，使我們能夠超越我們對客戶獲取和利潤率擴張的預期。所以我們對此感覺非常好。

Our next question comes from the line of (inaudible).

我們的下一個問題來自（聽不清楚）。

Can you hear me?

你聽得到我嗎？

Yes, we can.

我們可以。

Okay. Congrats, everyone. Nice work. And Sheila, I really noticed the upgrade in the apparel at Urban, so I'm happy to hear that. I assume that the positive comps in apparel are at improved year-over-year margins. But as we look forward to the accessories turning positive in the third quarter, is there still hope that Urban could deliver flattish kind of fourth quarter comps? Or do you think we should be thinking down single digits for the second half of the year?

好的。恭喜大家。幹得好。希拉，我真的注意到 Urban 服裝的升級，所以我很高興聽到這個消息。我認為服裝領域的積極競爭是指同比利潤率有所提高。但當我們期待第三季配件轉正時，Urban 是否仍有希望提供平淡的第四季業績？或者您認為我們應該考慮下半年的個位數成長嗎？

And just for Melanie, (inaudible) SG&A about plus mid-single for the back half. I think you had called for some moderation. I guess the incentive comp is pushing it up. But maybe you could help me there on how you think we should model it?

對梅蘭妮來說，（聽不清楚）SG&A 大約加上後半部的中路。我想你已經呼籲了一些節制。我猜激勵補償正在推動它的發展。但也許你可以幫助我了解你認為我們應該如何建模？

Okay. Let's start with Sheila, and good news, right?

好的。讓我們從希拉開始，這是個好消息，對吧？

Yes. Good news. We've turned the corner in apparel. This is definitely happening first within stores. And so I would like to say we feel optimistic, but we're not ready to over-promise that the correction will happen in Q4, just based on how much promotional activity Q4 normally lends to itself and what we're up against from last year's promotional activity.

是的。好消息。我們在服裝領域已經度過了難關。這肯定首先發生在商店內。因此，我想說，我們感到樂觀，但我們不准備過度承諾第四季度將發生調整，這只是基於第四季度通常為自己帶來的促銷活動以及我們去年面臨的情況年的促銷活動。

So we want to give ourselves time to really build our DTC strategy in a strong way for go forward. And that will take time to do well. That being said, the improvement in MMU is real. And I'm hopeful that we'll continue to see quarter-over-quarter improvement as we rectify our inventory levels with fresh newness.

因此，我們希望給自己一些時間，以強有力的方式真正建立我們的 DTC 策略，以便繼續前進。而這需要時間才能做好。話雖如此，MMU 的改進是真實的。我希望，隨著我們以新的方式調整我們的庫存水平，我們將繼續看到季度環比的改善。

Yes, I just -- will interject that we are definitely not ready to (inaudible) and we feel very good and positive about it. There's a lot of positive momentum, but there's a long way to go, and we do believe it's taken us longer than we had hoped, and we're not going to rush it. We're going to do it right. So Mel, do you want to talk about...

是的，我只是——會插話，我們絕對還沒準備好（聽不清楚），我們對此感覺非常好和積極。有很多積極的勢頭，但還有很長的路要走，我們確實相信這比我們希望的要花更長的時間，我們不會操之過急。我們會做對的。那麼梅爾，你想談談...

Yes. So just to clarify, we are -- the remarks that I provided earlier are a bit of an update. Let me pop you through Q3 and Q4. So for Q3 based on our current plans, you are correct that SG&A could grow in the low double-digit range as a result of higher incentive-based pay. In addition, we are incrementally increasing our marketing expenses for Free People, Anthro and Nuuly to increase customer acquisition and further drive our share gains.

是的。因此，為了澄清，我們——我之前提供的言論是一些更新。讓我簡單介紹一下第三季和第四季。因此，根據我們目前的計劃，對於第三季度，由於更高的激勵性薪酬，SG&A 可能會在較低的兩位數範圍內成長，這是正確的。此外，我們正在逐步增加 Free People、Anthro 和 Nuuly 的行銷費用，以增加客戶獲取並進一步推動我們的份額成長。

Given the top line strength of these business, it feels like the right time to make this investment distortion. And of course, if we do have some flexibility to reduce these planned increases should current sales momentum slow a little bit. Now with respect to Q4 and the remainder of the year after that, we believe that based on our current plans for sales and expenses, our Q4 SG&A expense could lag sales. So that's a bit of an update since the last quarter. I just wanted to clarify that for you.

考慮到這些業務的營收實力，現在似乎是進行這種投資扭曲的最佳時機。當然，如果目前的銷售勢頭稍微放緩，我們確實有一定的靈活性來減少這些計劃的成長。現在，就第四季度以及此後的剩餘時間而言，我們認為，根據我們目前的銷售和費用計劃，我們第四季度的銷售、管理及行政費用可能會落後於銷售。這是自上個季度以來的一些更新。我只是想為你澄清這一點。

Yes. And I think that the update that Tricia gave about our marketing campaign, the global marketing campaign is one good example of the investments that we're making in marketing in 3 of our 4 brands, but we're also doing it slightly in Urban as well. So we feel good about making those investments. And so far, we've seen a nice return wherever we've made them.

是的。我認為Tricia 就我們的行銷活動（全球行銷活動）提供的最新資訊是我們在4 個品牌中的3 個品牌的行銷方面進行投資的一個很好的例子，但我們也在Urban 方面做了一些投資，例如出色地。因此，我們對進行這些投資感覺良好。到目前為止，無論我們在哪裡製作它們，我們都看到了不錯的回報。

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

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

Congratulations on the nice results.

恭喜取得的好成績。

Thank you.

謝謝。

As you mentioned one of the remarks at the beginning, I think, customer favoring fashion over price. For each of the brands, what is happening with price? And what's changing this year as compared with last year? And then you gave a good update on Anthro with the potential for $2 billion in apparel and accessories sales, double Home to $1 billion and target 270 stores. As you think about Free People, any update on that and how you're thinking about what the long term could look like?

正如您在開頭提到的其中一條評論，我認為客戶更青睞時尚而不是價格。對於每個品牌來說，價格發生了什麼變化？而今年與去年相比有哪些改變呢？然後您介紹了 Anthro 的最新情況，服裝和配件銷售額有可能達到 20 億美元，Home 銷售額將翻一番，達到 10 億美元，目標是 270 家商店。當你想到 Free People 時，有什麼最新進展嗎？你如何看待長期發展？

I'll take -- I'll try to take the first question because you asked about all the brands. Although the focus on my right, please kick me if I misspeak. We think that in the Anthropologie, Free People and Free People Movement -- FP Movement brands, the customer is definitely favoring the fashion over price. And that's apparent to us. Fashion newness is what's most important. She responds when the product first comes in and she is less responsive to markdowns.

我會嘗試回答第一個問題，因為您詢問了所有品牌。雖然焦點在我右邊，如果說錯了請踢我。我們認為，在Anthropologie、Free People和Free People Movement——FP Movement這些品牌中，顧客肯定更重視時尚而不是價格。這對我們來說是顯而易見的。時尚新穎是最重要的。當產品首次上市時，她就會做出回應，而對降價的反應則不太敏感。

It's not to say that price isn't at all important, but I do think it's secondary. At the Urban brand, I think, it's a little bit different. I think that while she also, if the item is right, and I would call that jackets is a good example. If the item is right, she will spend a reasonable amount of money for the item. But we do see many of our opening price points over indexing. And so I think that at the Urban brand, the price is probably equally important to the fashion. And secondarily, you wanted...

這並不是說價格一點也不重要，但我確實認為它是次要的。我認為 Urban 品牌有點不同。我認為，雖然她也是，如果該項目是正確的，我會稱之為夾克是一個很好的例子。如果該物品合適，她會花合理的錢購買該物品。但我們確實看到許多開盤價點都超過了指數。所以我認為對於 Urban 品牌來說，價格對於時尚來說可能同樣重要。其次，你想要...

Long-term Free People.

長期自由的人民。

Sure.

當然。

Yes. So I'm going to break it down into the two parts. We -- FP Movement has been an incubated business for us, and we've started to grow this aggressively over the last several years. We think we'll be within $1 billion or more within the next 5 to 6 years. That's the goal that we've set for ourselves. And then with the Free People brand, we feel like there's tremendous opportunity for this to grow.

是的。所以我將把它分成兩部分。我們—FP Movement 一直是我們的孵化業務，並且在過去幾年中我們已經開始積極發展這項業務。我們認為未來 5 到 6 年內我們的收入將達到 10 億美元或更多。這就是我們為自己設定的目標。然後，透過 Free People 品牌，我們覺得有巨大的發展機會。

I'm not going to quote that number, but our international business is growing and growing profitably, which we wanted to grow a global FP brand for quite some time, and we're feeling that traction take hold. That, along with some large market share classifications, I don't -- I think the sky is the limit for Free People.

我不會引用這個數字，但我們的國際業務正在增長，並且盈利能力不斷增長，在相當長的一段時間內，我們一直希望發展成為全球 FP 品牌，而且我們感覺這種勢頭正在增強。連同一些大的市場份額分類，我不認為自由人民的極限是天空。

Our next question comes from the line of Mark Altschwager with Baird.

我們的下一個問題來自 Mark Altschwager 和 Baird 的對話。

Nice quarter. Wanted to ask you about margins. Overall margins seem to be tracking in the mid-7% this year. Can you talk about the puts and takes to get to the 10% goal? You've made substantial progress on IMU. So I guess I'm wondering is the incremental improvement from here, primarily a function of getting UO turning in the right direction?

不錯的季度。想問一下關於利潤的問題。今年的整體利潤率似乎在 7% 左右。您能談談為實現 10% 目標所採取的措施嗎？您在 IMU 方面取得了實質進展。所以我想我想知道從這裡開始的漸進式改進，主要是讓UO轉向正確的方向的功能？

And then with the explosive growth you continue to achieve at Free People, how should we think about any step-up in reinvestment needs there in the near term beyond some of the incremental marketing investments you outlined?

然後，隨著您在 Free People 繼續實現爆炸性增長，除了您概述的一些增量行銷投資之外，我們應該如何考慮短期內再投資需求的任何增加？

Mark, this is Frank. I'll take that. So you are correct in that overall, we are still targeting a 10% operating profit rate as a company. I think we are feeling confident that we have the ability to do so. And certainly, our performance this year has only increased our confidence. It's not just UO. I think each of the brands, they still have continued IMU improvement opportunity. As you look into next year as well as the horizon, you are correct.

馬克，這是法蘭克。我會接受的。所以整體來說你是對的，我們公司的營業利益率目標還是 10%。我認為我們有信心我們有能力做到這一點。當然，我們今年的表現只會增強我們的信心。不只是UO。我認為每個品牌，他們仍然有持續改進IMU的機會。當你展望明年以及未來的前景時，你是對的。

Obviously, once we do turn the shift the way that we want to at Urban Outfitters, that can incrementally benefit our operating profitability as well. Lastly, I don't want to exclude Nuuly, one of our big growth initiatives and businesses that is performing well. We still remain committed to turning a profitable quarter over the back half of this year. And once Nuuly turns that quarter, I think that also can add to our overall operating profitability.

顯然，一旦我們確實按照 Urban Outfitters 所希望的方式進行轉變，我們的營運獲利能力也會逐漸受益。最後，我不想排除 Nuuly，它是我們的大型成長計劃和表現良好的業務之一。我們仍致力於在今年下半年獲利。一旦 Nuuly 進入該季度，我認為這也可以增加我們的整體營運獲利能力。

So I think there are a lot of different drivers across the business between IMU, between improved markdown rates, between turning Urban around as well as Nuuly continuing to show their progress that can help to contribute and leave us pretty confident that we can get to 10% and can continue to run at 10% operating profit.

因此，我認為 IMU 之間、降價率提高、Urban 扭虧為盈以及 Nuuly 繼續展示他們的進展之間有很多不同的驅動因素，這些因素可以幫助做出貢獻，並使我們非常有信心能夠達到 10 % ，並且可以繼續以10%的營業利潤運作。

And our last question comes from the line of Ike Boruchow with Wells Fargo.

我們的最後一個問題來自富國銀行的 Ike Boruchow。

I was going to ask about the gross margin. So I guess is it relative to the 400 basis points in Q2 and the guide for Q3, can you maybe just contextualize like high level, how much of that is freight recapture? How much of that is better markdown?

我本來想問毛利率。所以我猜它是相對於第二季度的 400 個基點和第三季度的指導而言的，您能否像高層一樣進行背景分析，其中有多少是貨運收回？其中多少是更好的降價？

And then I just wanted to clarify, Frank, I think it was your comment about sustainability of that gross margin improvement through the end of the year. Should we believe that gross margins can continue to increase several hundred basis points into 4Q as well? Any color there would be great.

然後我想澄清一下，弗蘭克，我認為這是您對年底毛利率改善可持續性的評論。我們是否應該相信第四季毛利率還能繼續成長數百個基點？任何顏色都會很棒。

Yes, happy to take that, Ike. For the second quarter, IMU and markdown improvement was relatively even, maybe a little more shaded towards IMU. You asked about within IMU, how much is inbound transportation versus our initiatives? I would say inbound transportation cost savings right now are about 2/3, and our cross-functional initiatives are driving about 1/3 of the benefit.

是的，很高興接受，艾克。第二季度，IMU 和降價改進相對均勻，可能對 IMU 的影響更大一些。您詢問在 IMU 內部，與我們的措施相比，入境運輸費用是多少？我想說，目前入境運輸成本節省約為 2/3，而我們的跨職能措施正在推動約 1/3 的收益。

And we think that those can continue for the back half of the year as well as into next year. As we're thinking about Q3 and Q4, we think about that opportunity in IMU could be fairly consistent with what we've seen in the first half of the year. So about half of that 200 basis points of improvement. And we think there's roughly about that same type of improvement opportunity for, again, on a URBN basis into Q3 as well as into Q4.

我們認為這種情況可能會持續到今年下半年以及明年。當我們考慮第三季和第四季時，我們認為 IMU 的機會可能與我們在今年上半年看到的情況相當一致。所以這 200 個基點的改進大約有一半。我們認為，在 URBN 的基礎上，第三季和第四季也存在大致相同類型的改進機會。

Again, better inventory control. If you remember, there was a lot of inventory overhang at this time last year heading into the back half of the year that all 3 brands are now in a much better position on as well as the businesses at Anthropologie, Free People and FP Movement performing at exceptional levels and Urban is starting to show improvement as well leave us optimistic that we can drive those increased benefits to markdown rates as well.

再次，更好的庫存控制。如果你還記得的話，去年這個時候有大量庫存積壓，進入今年下半年，所有 3 個品牌現在都處於更好的位置，Anthropologie、Free People 和 FP Movement 的業務也表現出色處於特殊水平，城市開始表現出改善，這也讓我們樂觀地認為，我們也可以將這些增加的福利推向降價率。

Okay. I think that concludes the call. Thank you very much for participating, and we hope to see you in a few months.

好的。我想這次通話就到此結束了。非常感謝您的參與，我們希望幾個月後見到您。

Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

謝謝。女士們先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。