Urban Outfitters Inc (URBN) 2024 Q3 法說會逐字稿

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

女士們、先生們，美好的一天，歡迎參加 Urban Outfitters, Inc. 24 年第三季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。現在我想介紹投資者關係執行董事 Oona McCullough。麥卡洛女士，您可以開始了。

Good afternoon, and welcome to the URBN Third Quarter Fiscal 2024 Conference Call. Earlier this afternoon, the company issued a press release outlining the financial and operating results for the 3- and 9-month period ending October 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 財年第三季電話會議。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 10 月 31 日的 3 個月和 9 個月期間的財務和經營業績。以下討論可能包括前瞻性陳述。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 Frank Conforti, Co-President and COO URBN; Dave Hayne, Chief Technology Officer and President of Nuuly, Sheila Harrington, Global Chief Executive Officer of Free People and Urban Outfitters; Melanie Marein-Efron, Chief Financial Officer, URBN; and Richard Hayne, Chief Executive Officer, URBN. Following that, we will be pleased to address your questions. For more detailed commentary on our quarterly performance and the text of today's conference call, please refer to our Investor Relations website at www.urbn.com.

在今天的電話會議上，您將聽到 URBN 聯合總裁兼營運長 Frank Conforti 的演講； Nuuly 技術長兼總裁 Dave Hayne、Free People 和 Urban Outfitters 全球執行長 Sheila Harrington； Melanie Marein-Efron，URBN 財務長；和 URBN 執行長理查德·海恩 (Richard Hayne)。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 Frank.

我現在將把電話轉給弗蘭克。

Thank you, Oona, and good afternoon, and thank you to everyone who joined our call today. I will begin my commentary with comments on our operating results for the third quarter and then discuss more detailed notes by brand.

謝謝你，烏娜，下午好，也感謝今天加入我們電話會議的所有人。我將首先對第三季的營運業績進行評論，然後按品牌討論更詳細的說明。

Overall, the third quarter performed largely in line with our expectations as discussed on the August call. URBN delivered strong sales growth of 9% to a record $1.3 billion for the third quarter. The URBN sales growth was driven by a 6% retail segment comp and robust growth from Nuuly, which added $30 million in revenue during the quarter.

整體而言，第三季的表現基本上符合我們在 8 月電話會議上討論的預期。 URBN 第三季銷售額強勁成長 9%，達到創紀錄的 13 億美元。 URBN 銷售成長是由零售部門 6% 的成長率和 Nuuly 的強勁成長推動的，Nuuly 在本季度增加了 3000 萬美元的收入。

Retail segment comp was driven by high single-digit comps in the DTC channel and mid-single-digit comps in stores. Sales comps in both channels were the result of higher traffic and increased AUR. The Anthropologie, Free People and FP Movement brands all produced double-digit sales growth in stores and online with FP Movement leading the way with a comp sales increase of 49%.

零售部門的競爭是由 DTC 通路的高個位數競爭和商店的中個位數競爭所推動的。兩個通路的銷售收入都是流量增加和 AUR 增加的結果。 Anthropologie、Free People 和 FP Movement 品牌的實體店和線上銷售額均實現了兩位數的成長，其中 FP Movement 以 49% 的複合銷售額增幅領先。

Each of these brands achieved record third quarter brand revenue which more than offset a negative comp at the Urban Outfitters brand. URBN's bottom line results were even more impressive than our strong sales growth. Total URBN operating income sort of 90% higher than the prior year to $109 million and earnings jumped 123% to $83 million or $0.88 per diluted share.

這些品牌均在第三季實現了創紀錄的品牌收入，足以抵消 Urban Outfitters 品牌的負面業績。 URBN 的獲利結果甚至比我們強勁的銷售成長更令人印象深刻。 URBN 總營業收入比上年增長 90%，達到 1.09 億美元，收益躍升 123%，達到 8,300 萬美元，攤薄後每股收益 0.88 美元。

Our earnings growth was driven in part by a 27% increase in gross profit dollars, while gross profit rate surged by over 500 basis points. The improvement in gross profit rate was due to significantly improved initial margins as well as lower markdown rates at all brands.

我們的獲利成長部分得益於毛利成長 27%，而毛利率飆升超過 500 個基點。毛利率的改善是由於所有品牌的初始利潤率顯著提高以及降價率降低。

I will now provide more details by brand with a little help from Dave Hayne on Nuuly.

現在，我將在 Nuuly 上 Dave Hayne 的幫助下按品牌提供更多詳細資訊。

Thank you, Frank, and good afternoon, everyone. I'm happy to provide a brief update on our rental subscription business Nuuly. Judging by our Q3 results, our model of a monthly rental subscription certainly seems to be resonating with our target customer. We often hear from new subscribers that they first learned about Nuuly from their friends or family and after a month or 2 of renting from us, they then become vocal advocates for renting and go on to tell all their friends about Nuuly.

謝謝弗蘭克，大家下午好。我很高興向您介紹我們的租賃訂閱業務 Nuuly 的最新情況。從我們第三季的業績來看，我們的月租訂閱模式似乎確實與我們的目標客戶產生了共鳴。我們經常聽到新訂閱者說，他們首先從朋友或家人那裡了解到 Nuuly，在從我們這裡租房一兩個月後，他們就成為租房的倡導者，並繼續向所有朋友介紹 Nuuly。

It is this viral word of mouth paired with an attractive value proposition and strong execution that has helped us grow quickly in our first few years of business. And Q3 was a continuation of this trend. In the third quarter, Nuuly drove $65.5 million in revenue, which was an increase of 86% from last year. This revenue growth was driven by a net increase of nearly 39,000 subscribers in the quarter, up to a total of 198,000 active subscribers at quarter's end.

正是這種病毒般的口碑，加上有吸引力的價值主張和強大的執行力，幫助我們在業務的最初幾年中快速發展。第三季是這一趨勢的延續。第三季度，Nuuly 營收 6,550 萬美元，比去年成長 86%。這一收入成長是由本季淨成長近 39,000 名訂閱者推動的，季末活躍訂閱者總數達到 198,000 名。

As you may remember from our second quarter call, we spoke about 2 milestones relating to the Nuuly business. One, that we thought it was possible we could reach 200,000 subscribers by the end of the year, a goal we have now achieved in November. And two, that we believed we would see our first quarter of profit in the back half of this year.

您可能還記得我們第二季的電話會議，我們談到了與 Nuuly 業務相關的兩個里程碑。第一，我們認為到今年年底我們的訂戶數量可能會達到 20 萬名，我們現在已經在 11 月實現了這一目標。第二，我們相信我們將在今年下半年看到第一季的利潤。

Today, I'm very pleased to share that Nuuly saw an operating profit in the third quarter. This is a goal the team has been pushing very hard to achieve, and it makes me proud to see everyone's hard work recognized today.

今天，我很高興與大家分享 Nuuly 在第三季實現了營業利潤。這是團隊一直在努力實現的目標，今天看到每個人的辛勤工作得到認可，我感到很自豪。

As we look forward, there is much to be excited about in Nuuly's future. With the strong partnership of our sister brands Anthropologie, Free People, FP Movement and Urban Outfitters as well as over 400 other partner brands, we have curated what we believe is the most compelling rental clothing assortment on the market. With the help of our robust digital platform, driving both the customer experience and fulfillment center operations, Nuuly is very well positioned to further enhance our rental program with exciting new features that can drive higher customer value and the opening of our Raymore Missouri fulfillment center in Q4 provides the business with the urgently needed operating capacity to grow well into the future supporting in total over 3x our current subscriber count.

展望未來，Nuuly 的未來有很多值得興奮的地方。憑藉我們的姊妹品牌 Anthropologie、Free People、FP Movement 和 Urban Outfitters 以及 400 多個其他合作品牌的強大合作關係，我們精心策劃了我們認為市場上最引人注目的租賃服裝品種。借助我們強大的數位平台，推動客戶體驗和履行中心運營，Nuuly 處於非常有利的地位，可以透過令人興奮的新功能進一步增強我們的租賃計劃，這些新功能可以推動更高的客戶價值，並在密蘇裡州雷莫爾開設履行中心第四季度為企業提供了迫切需要的營運能力，以便在未來順利發展，支援的用戶總數是我們目前用戶數量的 3 倍以上。

So I'm very excited today to be reporting our first profit as a young company with the best rental assortment in the business with a homegrown digital platform that empowers us to drive more program value and with the infrastructure to realize continued growth and most importantly, with an incredible team to help us realize this future.

因此，我今天非常高興能夠報告我們作為一家年輕公司的第一筆利潤，我們擁有業內最好的租賃品種，擁有自主開發的數位平台，使我們能夠推動更多的項目價值，並擁有實現持續增長的基礎設施，最重要的是，擁有一支令人難以置信的團隊來幫助我們實現這個未來。

Thank you. I will now turn the call back over to Frank.

謝謝。我現在將把電話轉回給弗蘭克。

Thank you, Dave. Congratulations to you and the entire Nuuly team on this incredible milestone. I know we are all confident there are many more notable milestones to come.

謝謝你，戴夫。恭喜您和整個 Nuuly 團隊實現了這一令人難以置信的里程碑。我知道我們都相信未來還會有更多值得注意的里程碑。

Now moving on to Anthropologie. The Anthropologie team delivered an exceptionally strong 13% Retail segment comp in Q3. This increase was driven by double-digit positive store and digital comps. Both store and digital comps were driven by increased traffic and strong growth in regular price sales. Strong sales improvements in IMU and low third quarter markdown rates all led to record third quarter operating profit dollars for Anthropologie.

現在轉向人類學。 Anthropologie 團隊在第三季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。商店和數位銷售均受到流量增加和正常價格銷售強勁成長的推動。 IMU 銷售的強勁成長和第三季較低的降價率都導致 Anthropologie 第三季營業利潤創歷史新高。

The impressive quarterly performance was largely driven by apparel and accessories. Within apparel, the Anthropologie customer continues to respond favorably to fashion newness. In the quarter, Anthropologie launched its largest marketing campaign to date falling for Anthro. Leveraging a range of talent, including celebrity Phoebe Tonkin, brand ambassadors and influencers. That campaign was a resounding success, resulting in strong increases in brand impressions, sessions and new customer growth.

令人印象深刻的季度業績主要是由服裝和配件推動的。在服裝領域，Anthropologie 客戶繼續對時尚新穎做出積極反應。本季度，Anthropologie 發起了迄今為止最大的針對 Anthro 的行銷活動。充分利用各種人才，包括名人菲比·托金 (Phoebe Tonkin)、品牌大使和影響者。該活動取得了巨大成功，品牌印象、會話和新客戶成長強勁成長。

The brand's incredible execution across marketing, product and operations has helped to drive over 25% growth in new customers in North America. The strength across all apparel and accessory categories, along with new customer acquisition has resulted in a nicely positive start to the holiday season.

該品牌在行銷、產品和營運方面令人難以置信的執行力幫助推動北美新客戶成長了 25% 以上。所有服裝和配件類別的強勁表現以及新客戶的獲取為假期季節帶來了良好的積極開局。

Turning to Free People. Free People delivered yet another historically exceptional quarter, once again achieving record sales and profits in the third quarter. Retail segment comps at Free People finished the quarter up a robust 23%. The Free People brand produced a strong 18% comp and the FP Movement brand produced an impressive 49% 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, product and operations execution.

轉向自由人民。 Free People 又迎來了一個歷史性的非凡季度，第三季的銷售額和利潤再次創下歷史新高。 Free People 零售部門的業績在本季末強勁成長了 23%。 Free People 品牌產生了 18% 的強勁競爭，而 FP Movement 品牌產生了令人印象深刻的 49% 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管道的流量強勁成長所推動的，部分原因是出色的行銷、產品和營運執行。

The strength of the Free People assortments, marketing campaigns and store experience has continued in the fourth quarter. Resulting in a strong retail segment start to the holiday season. Free People Wholesale segment sales decreased 4% during the third 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 remained slightly negative, profitability has returned to a healthy level.

Free People 的商品分類、行銷活動和商店體驗在第四季度繼續保持強勁勢頭。導致假日季零售業表現強勁。 Free People Wholesale 部門的銷售額第三季下降了 4%。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。儘管批發銷售仍然小幅負值，但獲利能力已恢復到健康水準。

Now moving on to Urban Outfitters. Urban recorded a negative 14% Retail segment comp in Q3. UO's negative comp was a result of disappointing performance in North America and Europe. In North America, comp store and digital channel sales were low double-digit negative. The brand is experiencing some improvements in their assortment and marketing execution, but not enough to move the needle just yet.

現在轉向 Urban Outfitters。 Urban 在第三季零售部門的業績年減了 14%。 UO 的表現不佳是由於其在北美和歐洲的表現令人失望。在北美，比較商店和數位通路銷售額為低兩位數負值。該品牌在產品種類和行銷執行方面正在經歷一些改進，但還不足以取得進展。

In Europe, the weakness was concentrated in the U.K., while the rest of Europe continued to see positive Retail segment comps. Due to the weaker-than-expected sales during the third quarter as well as forecast for the fourth quarter, Inventory levels at the Urban Outfitters brand are elevated versus where we would like them to be. These inventory levels will lead to higher markdowns than originally planned during the holiday season for the brand.

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。由於第三季的銷售以及第四季的銷售低於預期，Urban Outfitters 品牌的庫存水準高於我們的預期。這些庫存水準將導致該品牌在假期季節期間的降價幅度高於原始計劃。

I will now turn the call to Sheila Harrington, who will speak to the Free People, Free People Movement and Urban Outfitters brands.

我現在將電話轉給 Sheila Harrington，她將就 Free People、Free People Movement 和 Urban Outfitters 品牌發表演講。

Thank you, Frank, and good afternoon, everyone. I'm pleased to provide an update for the Free People, FP Movement and Urban Outfitters brands. First, I will discuss Free People and FP Movement.

謝謝弗蘭克，大家下午好。我很高興為 Free People、FP Movement 和 Urban Outfitters 品牌提供最新資訊。首先，我將討論自由人民和FP運動。

As Frank reported, the total Free People brand had an exceptional quarter with total brand revenue up 18%. The consistently strong growth over the past few years that Free People can be attributed to the team's maniacal focus on the consumer and use of creativity in product, experience and marketing. We believe the brand can continue to achieve growth by expanding its reach and product offering. Distorting into select labels, including intimately FP, Priest and We the free, along with our core Free People label will allow us to complete the consumers' lifestyle looks and welcome more people into the brand.

正如 Frank 報導的那樣，Free People 品牌整個季度表現出色，品牌總收入成長了 18%。 Free People 在過去幾年中持續強勁的成長可歸因於團隊對消費者的瘋狂關注以及在產品、體驗和行銷方面的創造力的運用。我們相信該品牌可以透過擴大其影響力和產品供應來繼續實現成長。融入精選品牌，包括親密的 FP、Priest 和 We the free，以及我們的核心 Free People 標籤，將使我們能夠完善消費者的生活方式外觀，並歡迎更多人加入品牌。

We The Free enjoyed robust growth this quarter. The We The Free label offers heritage-inspired staples which captured the spirit of FP through hand touch details and wash. The We The Free label includes several product categories, but we believe the significant growth opportunity exists in denim, accessories and footwear. It currently accounts for over 20% of the brand's retail segment net sales and is experiencing outside growth.

We The Free 本季實現了強勁成長。 We The Free 品牌提供傳統風格的主打單品，透過手工細節和水洗捕捉 FP 精神。 We The Free 標籤包括多個產品類別，但我們相信牛仔布、配件和鞋類存在重大成長機會。目前，它佔該品牌零售部門淨銷售額的 20% 以上，並且正在經歷外部成長。

We plan for this label and the denim category, particularly to be a meaningful part of our continued growth. As mentioned, marketing is a key factor in FP's growth. The brand launched several successful marketing campaigns during the quarter and throughout the year, targeting consumers across multiple social platforms and achieved double-digit growth of new customers in Q3.

我們計劃讓這個標籤和牛仔布品類成為我們持續成長的重要組成部分。如前所述，行銷是 FP 成長的關鍵因素。該品牌在本季度和全年推出了多項成功的行銷活動，針對多個社交平台的消費者，並在第三季度實現了兩位數的新客戶成長。

Free People's revenue is currently concentrated in North America with 148 stores and a strong digital business. However, we believe its unique aesthetic and strong fashion handwriting, Free People has the opportunity to be a larger global brand. Just over 5 years ago, we opened our first European store in Amsterdam. Today, we operate 12 stores in Europe with locations in the Netherlands, France and the U.K.

Free People目前的收入主要集中在北美，擁有148家商店和強大的數位業務。但我們相信，憑藉著獨特的美感和濃厚的時尚手感，Free People有機會成為一個更大的全球品牌。就在 5 年前，我們在阿姆斯特丹開設了第一家歐洲商店。如今，我們在歐洲經營 12 家商店，分店位於荷蘭、法國和英國。

Our total international business grew by 34% and was profitable in Q3. We believe that strong growth could continue over the next several years.

我們的國際業務總量成長了 34%，並在第三季實現盈利。我們相信未來幾年仍將保持強勁成長。

Moving on to FP Movement. FP Movement offers women's activewear at the intersection of fashion and function and looks to redefine the female activewear market by infusing a strong feminine voice into a business long dominated by male sensibilities. The FP Movement design and buying teams have found unique opportunities to express this feminine voice and define the brand successfully.

繼續進行 FP 運動。 FP Movement 提供時尚與功能相結合的女性運動服，並希望透過向長期由男性主導的行業注入強烈的女性聲音來重新定義女性運動服市場。 FP Movement 設計和採購團隊找到了獨特的機會來表達這種女性聲音並成功定義品牌。

One example is the creation and marketing of the Righteous runsie, a one-piece performance product the team created to capture white space in the activewear market. The team continues to develop and strive for excellence and performance pieces from studio, run and outdoors.

一個例子是 Righteous runie 的創建和行銷，這是團隊創建的一體式高性能產品，旨在佔領運動服市場的空白。團隊不斷開發並追求卓越的工作室、跑步和戶外表演作品。

After experimenting shop-in-shops in the Free People stores for several years, we decided to open our first stand-alone Movement store in 2020. Since then, we've opened additional stores and currently have 37 locations in the U.S. 4 wall performance has greatly exceeded our expectations. Sales productivity per square foot as well as overall store profitability of these stand-alone movement stores are performing at similar levels to the Free People brand despite Movement being a young brand that is still building brand awareness. Given the success of the current store fleet, we plan to open at least 25 additional FP Movement stores in fiscal year '25.

在 Free People 商店嘗試店中店幾年後，我們決定在 2020 年開設第一家獨立的 Movement 商店。從那時起，我們又開設了更多商店，目前在美國擁有 37 個地點 4 牆表演已經大大超出了我們的預期。儘管 Movement 是一個仍在建立品牌知名度的年輕品牌，但這些獨立的 Movement 商店的每平方英尺銷售效率以及整體商店盈利能力的表現與 Free People 品牌相似。鑑於目前門市群的成功，我們計劃在 25 財年再開設至少 25 家 FP Movement 門市。

The wholesale team delivered over 60% year-over-year growth this quarter. While achieving this growth, they also ensure that we are selling to the correct partners who align with our brand aesthetics and values. The marketing and digital teams not only connected with our consumers across various platforms and with strong brand athletic investors, but they're also connected with customers in person through experiential events in local markets such as organized runs and workout events.

本季批發團隊的年增超過 60%。在實現這一成長的同時，他們也確保我們將產品銷售給符合我們品牌美學和價值觀的正確合作夥伴。行銷和數位團隊不僅透過各種平台與我們的消費者以及強大的品牌運動投資者建立聯繫，而且還透過當地市場的體驗活動（例如有組織的跑步和健身活動）與客戶親自建立聯繫。

These efforts led to over 50% new customer growth for the FP Movement brand in the quarter. The success of the FP Movement continues to build across all 3 distribution channels, retail, digital and wholesale. Total revenues grew by 55% in the third quarter. We are still in early stages of growth, but our eyes are on the goal of achieving $1 billion in annual revenue.

這些努力使得 FP Movement 品牌在本季的新客戶成長超過 50%。 FP 運動的成功繼續在所有 3 個分銷管道（零售、數位和批發）中取得成功。第三季總營收成長了55%。我們仍處於成長的早期階段，但我們的目標是實現年收入 10 億美元。

Thanks to Meg and the teams at both Free People and FP Movement for helping produce such amazing results in Q3 and your continued passion for the brand and our consumer.

感謝 Meg 以及 Free People 和 FP Movement 的團隊在第三季度幫助取得如此驚人的成果，以及您對品牌和我們消費者的持續熱情。

Turning to the Urban Outfitters brand. On our last call, we noted some improvement in women's and men's apparel comps in stores during the early back-to-school season. While the trend in apparel comps did improve and in stores, our men's business was positive for the quarter, total retail segment comp improvement fell short of our goals. We know there is much more work to be done. Negative traffic trends within stores and online remain our single largest challenge, and we know we have declined in consideration for our target consumer.

轉向 Urban Outfitters 品牌。在我們上次的電話會議中，我們注意到在返校季初期，商店中的男女服裝銷售情況有所改善。雖然服裝和商店的趨勢確實有所改善，但我們的男裝業務本季表現良好，但總零售部門的競爭改善未達到我們的目標。我們知道還有很多工作要做。商店和網路上的負流量趨勢仍然是我們最大的挑戰，我們知道我們已經減少了對目標消費者的考慮。

In order to change the trajectory of the Urban Outfitters business, our teams have identified 3 priorities. They are curating the right mix of products for meaningful national and emerging brands, improving the relevancy of our internally generated brand products and connecting with and inspiring our customers where they are.

為了改變 Urban Outfitters 的業務軌跡，我們的團隊確定了 3 個優先事項。他們正在為有意義的國家品牌和新興品牌策劃正確的產品組合，提高我們內部生成的品牌產品的相關性，並與我們的客戶建立聯繫並激勵他們。

Let me expand on each of these priorities. First, Urban Outfitters has always been a brand of brands. We rely on offering a compelling assortment of national and emerging brands to drive traffic and sales. We need to modernize our brand offering to be more relevant to our Gen Z consumer. This has been an important part of differentiating Urban from its competitors, and we believe this assortment has been off pinch since the pandemic. Some successes in our current business with popular brands, brand collaborations and unique offerings within our external brands reinforce this belief.

讓我逐一闡述這些優先事項。首先，Urban Outfitters 一直是品牌中的品牌。我們依靠提供各種引人注目的國內和新興品牌來推動流量和銷售。我們需要對我們的品牌產品進行現代化改造，以便與 Z 世代消費者更加相關。這是 Urban 與競爭對手區分開來的重要組成部分，我們相信自疫情爆發以來，這個品種一直很緊張。我們目前與流行品牌、品牌合作以及外部品牌內的獨特產品的業務取得的一些成功強化了這一信念。

Each merchant team across all divisions is currently reviewing their brand portfolio and working with new brands to build the most relevant mix possible.

所有部門的每個商家團隊目前正在審查其品牌組合，並與新品牌合作，以建立盡可能相關的組合。

Second, the continued development and evolution of our internal proprietary products remains critical to our long-term growth and profitability. Strong own brand product provides us with the ability to distort into the right items for our consumers with the right price architecture. Recent successes within the apparel business support when we get the price value correct, we see strong response from the consumer.

其次，我們內部專有產品的持續開發和發展對於我們的長期成長和獲利能力仍然至關重要。強大的自有品牌產品使我們能夠以合適的價格架構為消費者提供合適的產品。服裝業務最近的成功支持當我們獲得正確的價格值時，我們看到消費者的強烈反應。

This fall, we were able to distort into a more feminine sensibility with labels such as Kimchi Blue and Silence and Noise. This feminine attribute showed higher productivity and drove an outside percentage of women's apparel.

今年秋天，我們透過 Kimchi Blue 和 Silence and Noise 等品牌融入了更女性化的情感。這種女性特徵顯示出更高的生產力，並推動了女性服裝的外部比例。

Third is how and where we connect with our consumer. Historically, Urban Outfitters has been known to be early adopters in fashion and in marketing. We know we got behind prior to the pandemic and missed the opportunity to follow our consumers when they change their platform preferences. We need to develop inspiring and relevant content to meet the consumers where they are, be it on YouTube, TikTok or in our stores. We have begun to see progress with sequential improvement throughout the quarter on new, reactivated and total digital customers. While we're gaining momentum, rebuilding this relationship with the consumer will take time.

第三是我們與消費者連結的方式和地點。從歷史上看，Urban Outfitters 一直被認為是時尚和行銷領域的早期採用者。我們知道，我們在大流行之前就落後了，並且錯過了在消費者改變平台偏好時跟隨他們的機會。我們需要開發鼓舞人心且相關的內容來滿足消費者的需求，無論是在 YouTube、TikTok 還是在我們的商店中。我們已經開始看到整個季度新客戶、重新激活客戶和總數位客戶數量的連續改善。雖然我們的勢頭正在增強，但重建與消費者的關係需要時間。

I'm convinced that our laser focus on our target consumer and executing on our 3 priorities will lead to a return to long-term growth and profitability for the brand.

我相信，我們對目標消費者的高度關注並執行我們的三個優先事項將導致該品牌恢復長期成長和獲利能力。

I'm grateful for our teams for their commitment and dedication to Urban Outfitters.

我感謝我們的團隊對 Urban Outfitters 的承諾和奉獻。

Now turning your attention to the Urban brand in Europe. Total retail segments in Europe delivered growth in Q3. Positive Retail segment sales were driven by new store openings, while comp sales were negative. By our geography, business on the Mainland was comp positive in both channels, while sales in the U.K. were more challenged. We believe our connection with our consumers across Europe remains strong, and we have an opportunity to continue to grow our brand in this region.

現在將您的注意力轉向歐洲的 Urban 品牌。第三季歐洲零售業總量實現成長。新店開幕推動零售部門銷售額呈正成長，而同業銷售額呈負成長。從我們的地理位置來看，內地的業務在兩個管道上都表現良好，而英國的銷售則面臨更大的挑戰。我們相信我們與歐洲消費者的聯繫仍然牢固，我們有機會繼續在該地區發展我們的品牌。

Tomorrow, our first flagship Urban Outfitters store opens in Madrid on Gran Via which boasts one of the highest pedestrian traffic counts in the city. The store is housed in a repurpose cinema and commands unparalleled street visibility. Strategic openings such as this will be key to increasing the Urban brand's name recognition, which should also drive greater digital penetration.

明天，我們的第一家 Urban Outfitters 旗艦店將在馬德里格蘭大道 (Gran Via) 開業，這是該市行人流量最高的地區之一。該商店位於一座改造後的電影院內，擁有無與倫比的街道能見度。諸如此類的策略開放將是提高 Urban 品牌知名度的關鍵，這也將推動更大的數位滲透。

Congratulations to our European teams on this momentous opening, along with the other first market openings this past year. And I would like to say thank you to our total Urban Outfitters global teams for their passion, hard work and drive to service our consumer, both in stores and digitally around the world.

恭喜我們的歐洲團隊迎來了這項重要的開業，以及去年其他首次市場的開幕。我想對我們的 Urban Outfitters 全球團隊表示感謝，感謝他們的熱情、辛勤工作和動力，無論是在商店還是在世界各地以數位方式為我們的消費者提供服務。

I will now turn the call over to Melanie.

我現在將把電話轉給梅勒妮。

Thank you, Sheila, and good afternoon, everyone. Now I will discuss our thoughts on the fourth quarter and fiscal year '24 financial performance.

謝謝希拉，大家下午好。現在我將討論我們對第四季和 24 財年財務表現的看法。

Consumer demand in October slowed slightly versus the first 2 months of the third quarter. November sales have started off similar to October. Based on the start to the quarter, we believe fourth quarter total company sales growth could be in the mid-single digits. Sales growth in Q4 could result from low single-digit growth in Retail segment comp sales and high double-digit growth of Nuuly segment sales versus last year.

與第三季前兩個月相比，10 月消費者需求略有放緩。 11 月的銷售開始與 10 月類似。根據本季初的情況，我們認為第四季公司總銷售額成長可能會達到中個位數。第四季的銷售成長可能是由於零售部門銷售額的低個位數成長和 Nuuly 部門銷售額與去年相比的高兩位數成長所致。

Our growth in the retail and Nuuly segments is likely to be partially offset by sales decline in our Wholesale segment similar to Q3.

與第三季類似，我們零售和 Nuuly 部門的成長可能會被批發部門的銷售下降部分抵消。

Now on to gross profit margin. Based on current sales performance and plan, we believe URBN's gross margin rate for the fourth quarter could improve by approximately 300 basis points compared to the prior year fourth quarter. The increase in gross profit margin could be primarily driven by higher initial product margins from lower inbound freight as well as cross-functional initiatives which will favorably impact product margins.

現在談談毛利率。根據目前的銷售業績和計劃，我們認為URBN第四季的毛利率將比去年第四季提高約300個基點。毛利率的成長可能主要是由於入庫運費下降導致初始產品利潤率上升以及跨職能措施將有利地影響產品利潤率。

Now moving on to SG&A expenses. We believe SG&A growth for the fourth quarter could increase in the high single digits. Our planned growth in SG&A could be primarily driven by higher overall payroll due to increased store payroll expenses and higher incentive pay from improved company performance. In addition, we expect marketing expenses could be higher versus last year to support growth in customers and sales. 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. We are currently planning our effective tax rate to be approximately 26.5% for the fourth quarter.

現在轉向 SG&A 費用。我們認為第四季的銷售、管理及行政費用 (SG&A) 成長可能會出現較高的個位數成長。我們計劃的銷售、管理及行政費用增長主要是由於商店工資支出增加而導致整體工資增加以及公司業績改善帶來的更高的激勵工資推動的。此外，我們預計行銷費用可能會比去年更高，以支持客戶和銷售的成長。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。我們目前計劃第四季的有效稅率約為 26.5%。

Now moving on to inventory. We believe that inventory levels in the fourth quarter could grow at a rate below sales growth. We have made significant progress this year controlling our inventory to sales ratio and expect to continue that trend into next year. Capital expenditures for the fiscal year are planned at approximately $235 million. The spend is primarily related to investments in additional distribution facilities. Earlier this year, we opened our highly automated omni fulfillment facility in Kansas City, Kansas.

現在轉向庫存。我們認為第四季庫存水準的成長速度可能低於銷售成長速度。今年我們在控制庫存與銷售比率方面取得了重大進展，並預計明年將繼續保持這一趨勢。本財年的資本支出計畫約為 2.35 億美元。支出主要與額外配送設施的投資有關。今年早些時候，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。

In addition, we're investing in a new rental fulfillment facility in Missouri within the Kansas City region. We are targeting to open this facility in the beginning of fiscal year '25.

此外，我們也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 27 new stores and closing approximately 22 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.

最後，我們將在 24 財年開設約 27 家新店並關閉約 22 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。

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

現在我很高興將電話轉給迪克。

Thank you, Mel, and good afternoon, everyone. As you've heard from my colleagues, 4 of our 5 brands delivered outstanding results in Q3. The Free People, FP Movement and Anthropologie brands all set new third quarter records for both sales and profits. The Nuuly brand posted record active subscribers and revenues adding $30 million in additional revenues during the quarter. Nuuly also achieved a huge milestone in Q3 by recording their first quarterly profit. All of this as they celebrated only their fourth anniversary since launching the concept.

謝謝你，梅爾，大家下午好。正如您從我的同事那裡聽說的，我們的 5 個品牌中有 4 個在第三季度取得了出色的業績。 Free People、FP Movement 和 Anthropologie 品牌第三季銷售額和利潤均創下新紀錄。 Nuuly 品牌的活躍訂閱者數量和收入創歷史新高，該季度額外收入增加了 3,000 萬美元。 Nuuly 在第三季也實現了一個巨大的里程碑，錄得首季利潤。所有這一切都是他們慶祝推出這一概念以來的四週年紀念日。

Moving on to an overview of our fourth quarter prospects. There has been much market chatter about a slowdown in consumer spending. As Melanie reported, our brands did experience a slight moderation in demand beginning in early October. I want to emphasize the word slight. November-to-date business is in line with October results and customers continue to choose fashion newness as their preferred purchase and are willing to pay full price for what they want.

接下來概述我們第四季的前景。市場上有很多關於消費者支出放緩的討論。正如 Melanie 報導的那樣，從 10 月初開始，我們的品牌的需求確實略有放緩。我想強調輕微這個詞。 11 月至今的業務與 10 月的結果一致，客戶繼續選擇時尚新穎作為他們的首選購買，並願意為他們想要的東西支付全額。

We're still planning Q4 Retail segment comps at both the Anthropologie and Free People brands to remain double-digit positive and the Urban brand to show some improvement, but remain negative. Our Q4 plan calls for the company's total retail segment to produce comps of 3%. As we prepare to enter our fiscal year 2025, we enjoy 2 young brands, which has produced strong revenue growth this past year and several larger brands that drove excellent comps, and we believe will continue to attract new customers and gain market share. Together, these should drive nicely positive Retail segment comps in FY '25.

我們仍計劃在第四季度 Anthropologie 和 Free People 品牌的零售部門表現保持兩位數的正數，Urban 品牌顯示出一些改善，但仍為負值。我們的第四季計畫要求公司的零售業務總量達到 3%。在我們準備進入2025 財年之際，我們擁有2 個年輕品牌，它們在過去的一年中實現了強勁的收入增長，還有幾個較大的品牌推動了出色的業績，我們相信將繼續吸引新客戶並獲得市場佔有率。總之，這些應該會在 25 財年推動零售部門的良好表現。

In addition, we possess the opportunity to further improve merchandise margins while holding the line on SG&A increases. This bodes well for profitability. So we remain encouraged that FY '25 could produce solid growth in sales and profits. We are, of course, acutely aware that our single largest opportunity to improve the bottom line rests with our ability to turn the Urban brand around.

此外，我們有機會進一步提高商品利潤率，同時維持銷售、管理費用（SG&A）成長。這對獲利來說是個好兆頭。因此，我們仍然對 25 財年的銷售額和利潤實現穩健成長感到鼓舞。當然，我們敏銳地意識到，提高利潤的最大機會取決於我們扭轉 Urban 品牌的能力。

To that end, and as Sheila discussed, we are highly focused on building the team, improving the product offering and strengthening our marketing efforts. We have made significant progress in our search for our brand President, which is a critical step in moving forward.

為此，正如希拉所討論的，我們高度重視團隊建立、改善產品供應和加強行銷工作。我們在尋找品牌總裁方面取得了重大進展，這是前進的關鍵一步。

Looking further into the future, I believe we are witnessing the beginning of another watershed period in retail, much like the impact e-commerce had beginning in the early 2000s and Mobile Commerce had the following decade. Current advances in machine learning technology hold the promise to transform the business of retail once again. Data science and artificial intelligence have the potential to deliver much shorter product lead times, more accurate demand forecast, better allocations, more personalized marketing and optimized inventory planning among many other benefits.

展望未來，我相信我們正在見證零售業另一個分水嶺時期的開始，就像電子商務在 2000 年代初期開始產生的影響以及行動商務在接下來的十年中產生的影響一樣。當前機器學習技術的進步有望再次改變零售業。數據科學和人工智慧有潛力提供更短的產品交付週期、更準確的需求預測、更好的分配、更個人化的行銷和優化的庫存規劃以及許多其他好處。

These technologies should improve efficiency, reduce waste and provide cost savings across a wide range of functions. Our brand teams and I are especially excited by the potential for generative AI to augment and enhance our already superb creative capabilities. We expect to give you an annual update and appraisal of our progress in realizing the benefits of these amazing new tools.

這些技術應該可以提高效率，減少浪費，並在廣泛的功能中節省成本。我和我們的品牌團隊對產生人工智慧增強和增強我們本已卓越的創意能力的潛力感到特別興奮。我們希望向您提供年度更新和評估，以了解我們在實現這些令人驚嘆的新工具的優勢方面取得的進展。

In closing, I thank our brand and shared service leaders and their merchant, creative and operating teams and our 24,000 associates worldwide. Their efforts produced another outstanding quarter, and I thank them. I'm constantly humbled by their remarkable dedication and creativity. I also recognize and thank our many partners around the globe.

最後，我感謝我們的品牌和共享服務領導者及其商人、創意和營運團隊以及我們在全球的 24,000 名員工。他們的努力創造了又一個出色的季度，我感謝他們。他們卓越的奉獻精神和創造力一直讓我感到謙卑。我還認可並感謝我們在全球的眾多合作夥伴。

And finally, I thank our shareholders for their continued support. That concludes our prepared remarks. And I now turn the call over for your questions.

最後，我感謝股東的持續支持。我們準備好的演講到此結束。現在我將轉接電話詢問你們的問題。

(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。

How much of a headwind does the Urban Outfitters weakness pose to your fourth quarter gross margin? And then separately, how are you planning receipts for that brand for the first half of next year?

Urban Outfitters 的疲軟對你們第四季的毛利率造成了多大的不利影響？另外，您計劃明年上半年品牌的收入如何？

I can take the first half of your question. The UO headwind is baked into our forecast. So it is contemplated in our plan being able to achieve over 300 basis points of gross profit margin improvement in the fourth quarter. I also just want to point out in that plan, that is off of sort of what I would call an adjusted Q4. It does not include the $5.4 million of impairment that was in the fourth quarter of last year.

我可以回答你問題的前半部。 UO 的逆風已納入我們的預測。所以我們的計畫預計第四季毛利率能夠實現300個基點以上的提升。我還想指出，在該計劃中，這與我所說的調整後的第四季有所不同。其中不包括去年第四季 540 萬美元的減損。

If you were to include that impairment, our gross profit margin improvement could likely come in over 340 basis points of improvement. But we normally just adjust that out. And then as it relates to inventory, I think Sheila can take that.

如果算上該減值，我們的毛利率可能會提高 340 個基點以上。但我們通常只是調整一下。然後，由於涉及庫存，我認為希拉可以接受。

I can take that. Hi, Lorraine. As we believe that the business can improve in small amounts quarter-over-quarter, we want to make sure that we manage our inventory accordingly and that we don't basically be too aggressive one way or the other. We feel like as we move throughout the first half of the year, we will start to see sales outpace inventory level. We want to make sure that we give the stores a compelling assortment to walk into. And so we definitely feel like it's going to be an [indiscernible] versus an immediate reaction.

我可以接受。嗨，洛林。由於我們相信業務可以逐季度小幅改善，因此我們希望確保相應地管理我們的庫存，並且我們基本上不會以某種方式過於激進。我們感覺，隨著上半年的發展，我們將開始看到銷售額超過庫存水準。我們希望確保為商店提供令人信服的商品種類。所以我們肯定覺得這將是一種[音頻不清晰]而不是立即反應。

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）。

On the positive reaction to assortments and marketing that you cited into holiday deck, could you just elaborate on recent trends you've seen in November across banners. Maybe any key color by category that you're anticipating in holiday. And then Melanie, could you just speak to gross margin drivers in the fourth quarter? And just any opportunity remaining as we move into FY '25 on the gross margin front?

關於您在假日套牌中提到的對分類和行銷的積極反應，您能否詳細說明您在 11 月在橫幅廣告中看到的最新趨勢。也許是您在假期中期待的任何類別的關鍵顏色。然後梅蘭妮，您能談談第四季的毛利率驅動因素嗎？當我們進入 25 財年時，在毛利率方面還剩下什麼機會嗎？

Sure. I'd be pleased to do that, Matt. Retail segment comp performance so far in Q4 are very similar to our results in October. As Melanie discussed, the October results were slightly. And again, I want to emphasize that word slightly below Q3 total results. The biggest difference has been Free People, which is now posting comps in the high teens rather than the stratoferic mid-20s that they achieved in Q3.

當然。我很樂意這麼做，馬特。到目前為止，第四季度零售部門的業績與我們 10 月的結果非常相似。正如梅蘭妮所討論的，十月份的結果略有改善。再次，我想強調這個詞略低於第三季的總結果。最大的差異是 Free People，他們現在發布的比較數據是十幾歲左右，而不是第三季達到的 20 多歲左右。

Meanwhile, the Urban brand in North America is seeing some comp improvement to date, but it's still negative. If you wrap that all together, we believe total URBN Q4 retail segment comps should come in at approximately 3%.

與此同時，北美的 Urban 品牌迄今為止的業績有所改善，但仍然是負面的。如果將所有這些綜合起來，我們認為 URBN 第四季零售部門的總比較應該約為 3%。

And then, Matt, as it relates to gross profit margin, I think the over 300 basis points of improvement in the fourth quarter is largely going to be driven by IMU improvements. And that's really across all of our brands as we're really starting to realize the normalization of inbound supply chain costs as well as just the benefit of all the several cross-functional initiatives that we're seeing across the entire enterprise.

然後，Matt，因為它與毛利率有關，我認為第四季度超過 300 個基點的改善主要是由 IMU 的改進所推動的。這確實適用於我們所有的品牌，因為我們真正開始意識到入庫供應鏈成本的正常化，以及我們在整個企業中看到的所有跨職能措施的好處。

As we look forward into fiscal '25, we do think that there is room for continued gross profit margin expansion. Again, I think the part of that would be driven by improved IMU across all banners. We obviously still will be reaping the benefits of the inbound transportation costs coming down, but also and more importantly, the incremental benefits continuing of the cross-functional initiatives that we've led on with.

當我們展望 25 財年時，我們確實認為毛利率還有持續擴張的空間。同樣，我認為這部分將由所有橫幅上改進的 IMU 驅動。顯然，我們仍將受益於入境運輸成本下降的好處，更重要的是，我們所領導的跨職能措施將持續帶來增量效益。

And then secondarily, I think we do think that we'll start to see some improvement potentially from a markdown rate perspective, largely being driven by the Urban Outfitters brand. And then lastly, we think we can start to see a little bit of improvement and benefits of the new distribution facility that we built in Kansas that is now up and running. And as that begins to -- starts to reach its sort of full allocation. We'll start to see those benefits in not just logistics, but in delivery expense moderate throughout the year and then hopefully build on those to have continued benefits in the following year as well. So I think there's opportunity across all 3 brands.

其次，我認為我們確實認為從降價率的角度來看，我們將開始看到一些潛在的改善，這主要是由 Urban Outfitters 品牌推動的。最後，我們認為我們可以開始看到我們在堪薩斯州建造的現已投入運作的新配送設施的一些改進和好處。隨著這開始——開始達到其完全分配的程度。我們將開始看到這些好處不僅體現在物流方面，而且體現在全年適度的交付費用方面，然後希望在此基礎上在下一年也能持續受益。所以我認為這三個品牌都有機會。

There's a healthy amount of markdown opportunity at the Urban Outfitters brand. And I think you could start to keep the logistics and delivery expense opportunity due to that new facility in Kansas, all leading to some nice opportunity in fiscal '25.

Urban Outfitters 品牌有大量的降價機會。我認為，由於堪薩斯州的新設施，您可以開始保留物流和送貨費用的機會，所有這些都會在 25 財年帶來一些不錯的機會。

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。

Dick, I'm curious how you view the potential turnaround Urban Outfitters in the context of just where fashion trends are? Do you think performance there is about not interpreting the fashion correctly? Or is this something more structural in terms of store size, number and number store locations or say, number and locations of stores. the competitive set, just how you're thinking about the turn there.

迪克，我很好奇你如何看待 Urban Outfitters 在時尚潮流的背景下潛在的轉變？你認為那裡的表演是關於沒有正確解讀時尚嗎？或者說，就商店規模、商店數量和位置而言，這是更具結構性的東西，或者說，商店的數量和位置。競爭環境，就是你如何看待那裡的回合。

And then separately, you talked about machine learning and efficiency tools. Is there a big cost that is tied to that coming up in the future for you guys? Or is that something you already have at your fingertips. Just curious what that looks like.

然後，您分別談到了機器學習和效率工具。對你們來說，未來是否會產生巨大的成本？或者是您已經觸手可及的東西。只是好奇是什麼樣子的。

I'll start with the second part first, Paul. Certainly, we don't have AI and machine learning at our fingertips. It is something that we will invest in over time. And we will make steady progress. As I said, it's very much like some of the other initiatives that happened like e-commerce in the early '90s. We didn't jump into that full throttle from 1990. We started it. We got some feedback.

我先從第二部分開始，保羅。當然，我們還沒有觸手可及的人工智慧和機器學習。隨著時間的推移，我們將對此進行投資。我們將穩步前進。正如我所說，這與 90 年代初發生的電子商務等其他一些舉措非常相似。我們從 1990 年開始就沒有全力以赴。我們才開始這樣做。我們收到了一些回饋。

We find out what worked, what didn't work invested a little bit more. And I think we're fairly ahead of the curve then, and we expect to be somewhere near the beginning of the curve in this endeavor as well. As it relates to turning the Urban brand around, I think Sheila gave a fairly comprehensive dissipation about how we plan to do that. The one thing that you didn't talk about that I do want to emphasize is that we think that hiring a President for Urban Outfitters is a key component.

我們會發現什麼有效，什麼無效，並投入更多的資金。我認為我們當時相當領先，我們預計在這項努力中也將接近曲線的起點。由於它與扭轉 Urban 品牌有關，我認為希拉對我們計劃如何做到這一點給出了相當全面的闡述。你沒有談到但我想強調的一件事是，我們認為聘請 Urban Outfitters 總裁是一個關鍵組成部分。

And we've made significant progress in -- towards that end. And I think you might hear something in the next few months. So that will be one thing. And then we have to improve our product offering, and we have to improve, most importantly, our marketing. I think the product offering I think that what you've seen is a shift in fashion to a more feminine look. And that feminine look is performing quite well. And we will increase the penetration of femininity in our assortment.

我們已經在這方面取得了重大進展。我想你可能會在接下來的幾個月裡聽到一些消息。所以這將是一回事。然後我們必須改進我們的產品供應，最重要的是我們必須改進我們的行銷。我認為您所看到的產品是時尚轉變為更女性化的外觀。而且這種女性化的造型表現得相當好。我們將在我們的產品系列中增加女性氣質的滲透。

This is not -- while we've always had feminine, and this is not something that Urban Outfitters is particularly known for. It's not like the Free People or Anthropologie brands, which are much more highly feminine. And so I think in that sense, we're swinging a little against the side, but I don't want to put that out there as an excuse. Our job is to always have the products that our customers want. I think in terms of the marketing, I think that, that is, as Sheila said, is and was a miss and that we didn't move along with the customer and appear where the customer was residing in areas like TikTok and we didn't quickly enough adopt YouTube as one of our main platforms.

這不是——雖然我們一直都有女性化的風格，而這並不是 Urban Outfitters 特別出名的。它不像 Free People 或 Anthropologie 品牌，後者更女性化。所以我認為從這個意義上說，我們有點偏向一邊，但我不想把它當作藉口。我們的工作是始終提供客戶想要的產品。我認為就行銷而言，正如希拉所說，我們沒有與客戶一起行動，也沒有出現在客戶居住的地方，例如 TikTok，而我們沒有這樣做。我們不會很快將YouTube 作為我們的主要平台之一。

We did have an awful large exposure on Instagram and remain on that platform. So I think as we move along and have better marketing and show up where the customer is, we will continue our march toward a greater penetration of digital customers and improve our sessions. So I think that does it. So as for the next question.

我們確實在 Instagram 上獲得了巨大的曝光率，並且仍然留在該平台上。因此，我認為，隨著我們繼續前進，進行更好的行銷並展示客戶所在的位置，我們將繼續向數位客戶的更大滲透率邁進，並改善我們的會話。所以我認為這樣就可以了。那麼接下來的問題。

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。

Perfect. I wanted to focus on the Urban banner as well. Thanks a lot for the color on the initiatives. With those in place, how do you think about the time line for the Urban Outfitters inflection from here and what are the key metrics you're watching in the meantime? And then secondly, just on profitability for that business. I'm having trouble thinking about where it sits versus history and how much of a drag it is on the total business. So perhaps if you could just kind of outline the puts and takes on that piece, too, it would be super helpful.

完美的。我也想關注城市旗幟。非常感謝這些倡議的色彩。有了這些，您如何看待 Urban Outfitters 從這裡開始的轉變的時間軸？您同時關注的關鍵指標是什麼？其次，只是該業務的獲利能力。我很難思考它相對於歷史的定位以及它對整個業務的拖累有多大。因此，如果您也能概述該作品的放置和接受，那將會非常有幫助。

Okay. Alex, I'm going to take the first part of that question. I think when we think about how long it will take to turn the Urban Outfitters brand and how we're thinking about how we're measuring that. I think we want to do it in a very healthy way and look for improvement month-over-month and quarter-over-quarter because we've lost our consumer, we're staying highly focused on the 18- to 25-year-old Urban Outfitters consumer.

好的。亞歷克斯，我將回答這個問題的第一部分。我認為當我們考慮轉變 Urban Outfitters 品牌需要多長時間以及我們如何考慮如何衡量這一點時。我認為我們希望以一種非常健康的方式做到這一點，並尋求逐月和逐季度的改進，因為我們已經失去了消費者，我們將高度關注 18 至 25 歲的消費者Urban Outfitters 的老消費者。

And we feel like with laser focus on the consumer will gain that customer back. We are hyper focused on the new consumer. We've lost our way. We need to reget that consumer back and through our marketing efforts, whether it's engagement in the different social platforms. We're looking for that. We're listening hard to the consumer there as well as watching what they're reacting to in terms of product offering.

我們認為，透過專注於消費者將重新贏得客戶。我們非常關注新消費者。我們迷失了方向。我們需要透過我們的行銷努力重新吸引消費者，無論是在不同的社交平台上的參與。我們正在尋找那個。我們正在認真傾聽消費者的聲音，並觀察他們對產品提供的反應。

So I think not only from a top line sales perspective or a sales velocity as we look at from a merchant, but also trying to listen much harder to what we do and where it resinates the most. So quarter-over-quarter improvement is what we're looking for, for a long-term healthy return for Urban Outfitters growth.

因此，我認為，不僅要從銷售收入的角度或我們從商家角度看待的銷售速度，還要更加努力地傾聽我們所做的事情以及最令人感興趣的地方。因此，我們希望季度季比的改善能為 Urban Outfitters 的成長帶來長期健康的回報。

And Alex, this is Dick talking. I think that you asked about metrics. I know that Sheila is always watching and watching extremely carefully the number of sessions on a daily basis and store traffic. And I think those 2 metrics, if we can see those improvr, we will know that we are on the right track and sales will follow. Frank, do you want to take the last part of the question?

亞歷克斯，這是迪克在說話。我認為您問的是指標。我知道Sheila總是非常仔細地觀察每天的會話數量和商店客流量。我認為這兩個指標，如果我們能夠看到這些改進，我們就會知道我們走在正確的軌道上，銷售也會隨之而來。法蘭克，你想回答問題的最後一部分嗎？

Obviously, the yield profitability has fallen pretty meaningfully from where they've historically run at. I think the nice thing is with the strength of our other 4 businesses, we've been able to more than compensate for that and drive really, really healthy operating profit gains. And then that leaves for the opportunity for Urban does begin to turn their business around for them to then contribute to incremental growth in fiscal '25 and beyond and begin to recapture from where they were.

顯然，收益率與歷史水準相比已經大幅下降。我認為好的一點是，憑藉我們其他 4 項業務的實力，我們能夠彌補這一點，並推動真正非常健康的營業利潤成長。然後，Urban 就有機會開始扭轉業務，為 25 財年及以後的增量成長做出貢獻，並開始恢復原來的狀態。

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。

As you think about the strength of some of the smaller businesses like Free People Movement and now Nuuly with reaching profitability earlier, what do you think the opportunity for them is, and just early thinking about framing 2024 and the incremental improvement potentially to gross or operating margins from those businesses.

當您考慮 Free People Movement 和現在的 Nuuly 等一些較小企業的實力時，您認為他們的機會是什麼，以及早期考慮制定 2024 年框架以及總或運營方面的潛在增量改進這些業務的利潤。

And lastly, just on the gross margin discussion of the higher IMU and lower markdowns, is there opportunity to continue this going forward? In this environment? Or is there any changes that you see in the structure of IMU or markdown cadence?

最後，就更高 IMU 和更低降價的毛利率討論而言，未來是否有機會繼續這種情況？在這種環境下？或者您在 IMU 或 markdown cadence 的結構中看到了什麼變化？

Okay, Dana, I'll take the first part of that question and then pass it along both to Sheila, who will talk about Free People Movement and to Dave, who will talk about Nuuly. I'm glad you asked the question because we collectively here at URBN are extremely excited about what you'd called the smaller businesses because we think they won't be smaller for that loan.

好的，達納，我將回答該問題的第一部分，然後將其傳遞給希拉，她將談論自由人民運動和戴夫，她將談論努利。我很高興你問了這個問題，因為我們 URBN 都對你所說的小型企業感到非常興奮，因為我們認為他們不會因為這筆貸款而變得更小。

We think both Nuuly and Free People Movement have an opportunity to be $1 billion plus brands. And I can't tell you that's going to happen in FY '25 because I know it won't. But I think it is going to happen much quicker than any of our other brands reached $1 billion. And so Sheila, would you like to talk about Movement?

我們認為 Nuuly 和 Free People Movement 都有機會成為價值 10 億美元以上的品牌。我不能告訴你這會在 25 財年發生，因為我知道它不會。但我認為這將比我們任何其他品牌達到 10 億美元的速度要快得多。希拉，你想談談運動嗎？

Sure. I'll start. Yes, we're excited about FP Movement. The metrics that we're reading just indicate that we should invest with as much speed as we possibly can, which Dick has been encouraging us to do all along. And with this speed comes scale in that scale, there comes IMU. So I do think as we continue to grow the FP Movement brand with nearly doubling our store count with at least 25 new stores next year and a robust digital and marketing strategy attached to attracting new customers. So there is only upside in terms of IMU from the depth of our [buys] frankly. And there's a lot of strategies that have been in long work to be able to take advantage of that scale Dana.

當然。我開始吧。是的，我們對 FP 運動感到興奮。我們正在閱讀的指標只是表明我們應該盡可能快地進行投資，迪克一直鼓勵我們這樣做。隨著速度的增加，IMU 也隨之而來。因此，我確實認為，隨著我們繼續發展 FP Movement 品牌，明年我們的商店數量將增加近一倍，至少開設 25 家新商店，並採取強有力的數位和行銷策略來吸引新客戶。因此，坦白說，從我們[購買]的深度來看，IMU 只有上漲的空間。為了能夠利用這種規模的 Dana，有許多策略經過了長期的研究。

Okay. Dave, do you want to take Nuuly?

好的。戴夫，你想帶 Nuuly 嗎？

Yes, sure. Dana, thanks for the question. We've been having a lot of fun building the Nuuly business. We see a lot of opportunity with the Nuuly business to continue to grow. It's been really interesting to learn a new business, and there's been a lot of interesting learnings from it. I think one of the most interesting learnings that we've seen is that we're really growing a new market.

是的，當然。達納，謝謝你的提問。我們在建立 Nuuly 業務過程中獲得了很多樂趣。我們看到 Nuuly 業務有很多繼續成長的機會。學習新業務真的很有趣，並且從中學到了很多有趣的東西。我認為我們看到的最有趣的教訓之一是我們確實正在開發一個新市場。

We don't see ourselves necessarily always stealing share in the Nuuly business. We feel like we're growing a new market and rental is a new concept that people have to learn. The indicator that kind of gives us that impression is that when we see we survey all of our new subscribers. And when we see new subscribers join Nuuly, roughly 60% of them have never rented from anybody before. So it really feels like we're bringing new customers into a new consumption model, which just gives us a lot of excitement for the future and where this can go as more and more people come upon the idea of renting.

我們並不認為自己總是在竊取 Nuuly 業務的份額。我們覺得我們正在發展一個新的市場，而租賃是人們必須學習的新概念。給我們這種印象的指標是，當我們看到時，我們會對所有新訂閱者進行調查。當我們看到新訂閱者加入 Nuuly 時，大約 60% 的人以前從未從任何人那裡租房過。因此，我們確實感覺我們正在將新客戶帶入新的消費模式，這讓我們對未來感到非常興奮，並且隨著越來越多的人想到租賃的想法，這會走向何方。

So I think that's a really exciting thing. And then I think also as we continue to scale on the infrastructure that's going to be supporting Nuuly, opening our next warehouse and Raymore Missouri should allow us to really drive down a fair amount of our variable costs across our delivery and shipping costs. So those types of things are just going to allow us to continue to leverage as we continue to grow. So fun times at Nuuly.

所以我認為這是一件非常令人興奮的事情。然後我認為，隨著我們繼續擴大支持 Nuuly 的基礎設施，開設我們的下一個倉庫和密蘇裡州雷莫爾應該能讓我們真正降低相當多的交付和運輸成本的可變成本。因此，這些類型的事情只會讓我們在不斷發展的過程中繼續發揮作用。 Nuuly 的歡樂時光。

I think, Dana, this is Frank. What's really exciting is when you think about our goal of getting to the 10% operating profit. And obviously, we knock wood have made some really nice progress in the first 3 quarters this year, and I think we're going to continue to make progress towards that goal in the fourth quarter and rounding out fiscal '24. Then you start to think about the levers that can get us there, that we can pull on. We do talk about improved IMU across all 3 brands. There is nothing structurally that we believe that we've done yet in driving IMU improvement.

我想，達納，這是法蘭克。真正令人興奮的是當您想到我們實現 10% 營業利潤的目標時。顯然，我們在今年前三個季度取得了一些非常好的進展，我認為我們將在第四季度繼續朝著這一目標取得進展，並在 24 財年結束時繼續取得進展。然後你開始思考可以讓我們達成目標的槓桿，我們可以利用的槓桿。我們確實談論了所有 3 個品牌的 IMU 改進。從結構上來說，我們認為我們在推動 IMU 改進方面還沒有做任何事情。

You talk about Nuuly, reaching their milestone of hitting operating profit and being able to build upon that into fiscal '25 and going forward. Talk about FP movement, which is producing 55% growth just now in the third quarter and a double-digit operating profit rate, right? So they're going to continue to have outpaced growth versus some of our other businesses and meaningfully contribute to our operating profit growth.

您談到了 Nuuly，它達到了營業利潤的里程碑，並能夠在此基礎上進入 25 財年並繼續前進。談論 FP 運動，第三季剛剛產生 55% 的成長和兩位數的營業利潤率，對吧？因此，與我們的其他一些業務相比，它們的成長速度將繼續超過，並對我們的營業利潤成長做出有意義的貢獻。

As we talked about, Urban Outfitters, currently not running where they historically have. But as that business begins to turn around contributing into our operating profit growth next year as well. there's really just a lot of opportunity across the table for us to build upon the progress that we've made this year and hit that 10% operating profit goal and continue to run there on a longer-term basis.

正如我們所討論的，Urban Outfitters 目前並沒有像以前那樣運作。但隨著該業務開始好轉，也將為我們明年的營業利潤成長做出貢獻。我們確實有很多機會在今年取得的進展的基礎上再接再厲，實現 10% 的營業利潤目標，並繼續長期實現這一目標。

Our next question comes from the line of Janet Kloppenburg with JJK Research Associates.

我們的下一個問題來自 JJK Research Associates 的 Janet Kloppenburg。

COngratulations on a great quarter. Dick, when you think about Free people Movement and its success (inaudible) Sheila. Do you think that we should anticipate an acceleration of store openings for that brand, while the Free People store openings continue. And should we think that that's an opportunity for unit expansion to accelerate as we look forward.

恭喜您度過了一個美好的季度。迪克，當你想到自由人民運動及其成功（聽不清楚）希拉。您是否認為我們應該預期品牌的新店開張速度會加快，而 Free People 商店的開幕仍在繼續？我們是否應該認為這是我們未來加速擴張的機會？

And then just on the recent sales slowdown, could you -- and I know it's slight, Dick, I'm not hysterical. So I just wanted to understand if it was attributable to sort of warmer weather in many markets or any sort of geographical or category dispersion that you're seeing.

然後就最近的銷售放緩，你能——我知道這很輕微，迪克，我並沒有歇斯底里。所以我只是想了解這是否歸因於許多市場的天氣變暖或您所看到的任何地理或類別分散。

Okay, Janet. I'm going to ask Sheila to talk about first because I know she's really excited about Free People Movement and is planning to open a lot of new stores. Sheila?

好吧，珍妮特。我要請希拉先談談，因為我知道她對自由人民運動非常興奮，並計劃開設許多新商店。希拉？

Yes. So Janet, we have a strong pipeline currently ready to go for next year. So 25, we are saying at least 25. I think that's the most amount of stores, at least in my growth of the Free People brand family that we've experienced. So I would say that we see that growth knock on wood, continuing for several years to come, frankly, as we explore new markets.

是的。珍妮特，我們目前擁有強大的管道，準備在明年投入使用。所以 25 家，我們說的是至少 25 家。我認為這是商店數量最多的，至少在我所經歷的 Free People 品牌家族的成長過程中是如此。所以我想說，坦白說，當我們探索新市場時，我們會看到這種成長會在未來幾年持續下去。

We're actually in a couple of markets that Free People is not in with FP Movement as well. And this isn't at the cost of the growth of Free People. As I spoke about, we have a lot of growth internationally and digitally still to do with the Free People brand itself. So we see both brands growing independently.

實際上，我們也進入了 Free People 和 FP Movement 不參與的幾個市場。這並不以自由人民的成長為代價。正如我所說，我們在國際和數位領域的大量成長仍然與 Free People 品牌本身有關。所以我們看到兩個品牌獨立發展。

Obviously, FP movement at an accelerated level towards our $1 billion goal. As far as the slowdown of Free People, Q3 ended the 14th quarter of sequential positive FP retail segment growth. 27 if we exclude that 1 quarter a couple of years ago in fiscal '21. So we're just up against more challenging positive comparisons.

顯然，FP 正在加速朝著我們 10 億美元的目標邁進。就 Free People 的放緩而言，第三季結束了 FP 零售部門連續第 14 季的正成長。如果我們在 21 財年排除幾年前的第 1 季度，則為 27。因此，我們面臨著更具挑戰性的正面比較。

And frankly, I feel extremely strong that the buying teams, the design teams and our marketing teams are all in the pulse of the right fashion trends. And so we remain extremely optimistic and positive going into the fourth quarter. I think this time of year is always want to pause on, but we're seeing very strong results to date, and we have no reason to believe our momentum is going to be interrupted.

坦白說，我強烈感覺到採購團隊、設計團隊和行銷團隊都緊跟著正確的時尚趨勢。因此，我們在進入第四季度時仍然非常樂觀和積極。我認為每年的這個時候總是需要暫停，但迄今為止我們看到了非常強勁的結果，我們沒有理由相信我們的勢頭會被中斷。

I just want to add in real quick on the FP Movement stores. Honestly, some really impressive stats. When you think about the fact that it's still a very young brand that's growing in an awareness and the fact that their sales and profit productivity is on par with the Free People brand in such early days to have that strength and success in those doors really leaves us very confident and excited about that store growth.

我只想快速添加 FP Movement 商店。老實說，有些數據確實令人印象深刻。當你想到它仍然是一個非常年輕的品牌，並且其知名度正在不斷提高，並且他們的銷售和利潤生產力在如此早期就與Free People 品牌相當時，在這些門上擁有這樣的實力和成功真的很令人驚嘆我們對商店的成長非常有信心和興奮。

And that's why -- Sheila talks about 25 at least, if not more, just because we've been really impressed over the first couple of years and how well those stores have performed, especially given the continued awareness that we're starting to build upon, but obviously, much less than where the 3 people collection brand stands.

這就是為什麼——Sheila 談到至少25 家，如果不是更多的話，只是因為我們在最初的幾年裡給我們留下了深刻的印象，這些商店的表現有多好，特別是考慮到我們正在開始建立持續的意識但顯然，比 3 人系列品牌的地位要少得多。

And Janet, I can tell you, we all sit around and talk a good deal about what you -- what we have discussed as a slight and again, slight slowdown in October. And we threw out there some potential reasons like the weather, like or -- like the student loan repayment and like harder comparisons.

珍妮特，我可以告訴你，我們都坐在一起，談論了很多關於我們所討論的 10 月份輕微放緩的問題。我們拋出了一些潛在的原因，例如天氣，例如學生貸款償還以及更困難的比較。

And I think we've just kind of said that we don't think necessarily there are any of them. Of course, the heavier -- the harder comparisons are real. And so that's got to be a factor. Student loans, how could that possibly be positive. It only could steal money away from purchasing. So that could be a factor. Quite frankly, we just can't come up with one that we feel is so compelling that we can attribute this slight slowdown to it.

我認為我們只是說我們認為不一定存在其中任何一個。當然，越重——就越難進行比較，這是真實的。所以這一定是個因素。學生貸款，怎麼可能是正數。它只能從購買中偷走錢。所以這可能是個因素。坦白說，我們只是無法提出一個我們認為如此引人注目的方案，以至於我們可以將這種輕微的放緩歸因於它。

What I will tell you is that we're very convinced given the behavior of the customer that what it isn't, is the beginning of the dreaded R word. We don't think there's any sense that we can see in our business of the consumer pulling back. She's very engaged with the brand. She's buying full price and she's buying fashion. And those are very unusual in my experience if it were the beginning of the recession. So I don't think that we should treat about that. I think our business is very healthy. The customer is healthy, and we believe that we're going to have an excellent holiday season.

我要告訴你的是，考慮到客戶的行為，我們非常確信這不是可怕的 R 字的開頭。我們認為，在我們的業務中，消費者沒有任何退縮的跡象。她對這個品牌非常投入。她買全價，她買時裝。如果這是經濟衰退的開始，那麼在我的經驗中，這些都是非常不尋常的。所以我認為我們不應該對待這個問題。我認為我們的業務非常健康。客戶很健康，我們相信我們將度過一個愉快的假期。

Our last question will come from the line of Marni Shapiro with the retail tracker?

我們的最後一個問題將來自 Marni Shapiro 與零售追蹤器的系列？

And so I don't forget happy Black Friday to everybody. Dave, I have a question for you on Nuuly. Congratulations on turning to profitability and starting a new business is very difficult. And one of the most expensive parts of that is the customer acquisition cost. So I'm curious if we can dig into that just a little bit. Have they come down at all? Are they high or low relative to the industry? And are you able to tap into or draft off of really, I guess, free people in Anthro to bring customers into Nuuly just a little what that looks like?

所以我不會忘記祝大家黑色星期五快樂。戴夫，我有一個關於 Nuuly 的問題想問你。恭喜你扭虧為盈，開展新業務非常困難。其中最昂貴的部分之一是客戶獲取成本。所以我很好奇我們是否可以深入研究一下。他們到底降下來了嗎？相對於產業而言，它們是高還是低？我想，你是否能夠利用或抽調 Anthro 中真正自由的人員，將客戶帶入 Nuuly，就像看起來的那樣？

Yes. Sure, Marni. Thanks for the question, and thanks for all the kind words. Our customer acquisition costs have been over the last few years, actually have been a lot less than what we originally thought they were going to be when we originally started the business. So we've been very happy about that. I think our team has been very creative about how they go about marketing.

是的。當然，瑪尼。謝謝你的提問，也謝謝你所有的客氣話。過去幾年我們的客戶獲取成本實際上比我們最初開展業務時的預期要低得多。所以我們對此感到非常高興。我認為我們的團隊在行銷方面非常有創意。

They've been leveraging a lot of part of mouth, which has been something that's been a huge driver for the business, putting in place things like referral programs that allow people to incentivize that word of mouth has been a big driver for us. We do spend across some social platforms. And in those platforms, we are spending creatively across things like ambassador programs and influencer programs, so I would say that we've been very happy with what our customer acquisition costs look like.

他們一直在利用大量的口碑，這是業務的巨大推動力，他們制定了推薦計劃等措施，讓人們能夠激勵口碑，這對我們來說是一個巨大的推動力。我們確實在一些社交平台上消費。在這些平台上，我們在大使計劃和影響力計劃等方面進行了創造性的支出，所以我想說，我們對客戶獲取成本非常滿意。

I think there's an opportunity to continue to draft off what we've been -- a lot of the good work we've been doing. We do -- we don't draft off the other brands like you were suggesting really at all from a marketing standpoint. What I would say is we draft off the other brands very much from a product standpoint, and that's a huge benefit on the platform. We have the luxury of working with some sister brands that produce amazing product that customers would love to rent and do love to rent.

我認為我們有機會繼續總結我們一直以來所做的許多出色的工作。我們確實這樣做——從行銷的角度來看，我們根本沒有像您建議的那樣起草其他品牌。我想說的是，從產品的角度來看，我們在很大程度上借鑒了其他品牌，這對平台來說是一個巨大的優勢。我們很榮幸與一些姐妹品牌合作，這些品牌生產出令人驚嘆的產品，客戶願意租賃並且確實喜歡租賃。

So I think that is a huge customer acquisition source that we have that is a big benefit for us. The fact that Anthropologie and Free People [indiscernible] product is on our platform, it's just something that is also an attractive thing that brings in new customers. So I think all of that combined has been one of the big reasons for the success so far.

所以我認為這是我們擁有的巨大的客戶獲取來源，這對我們來說是一個很大的好處。事實上，Anthropologie 和 Free People [音訊不清晰] 產品出現在我們的平台上，這也是吸引新客戶的一個有吸引力的東西。所以我認為所有這些加起來就是迄今為止成功的重要原因之一。

Okay. I think that wraps up today's call. I thank you all very much for joining. I wish you all of the most joyous Thanksgiving. Don't over eat because if Black Friday's the next day, we all have to be out in stores -- Slightly over eat. Okay. Thank you very much.

好的。我想今天的電話會議就到此結束了。我非常感謝大家的加入。祝大家感恩節快樂。不要吃太多，因為如果第二天是黑色星期五，我們都必須去商店——稍微吃得太多。好的。非常感謝。

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

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。