Urban Outfitters Inc (URBN) 2025 Q2 法說會逐字稿

Good day, ladies and gentlemen. And welcome to the Urban Outfitters, Inc., second-quarter Fiscal '25 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded.

美好的一天，女士們先生們。歡迎參加 Urban Outfitters, Inc. 25 財年第二季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。

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

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 second-quarter Fiscal 2025 conference call. Earlier this afternoon, the company issued a press release outlining the financial and operating results for the three- and six-month period ending July 31, 2024.

午安.歡迎參加 URBN 2025 財政年度第二季電話會議。今天下午早些時候，該公司發布了一份新聞稿，概述了截至 2024 年 7 月 31 日的三個月和六個月期間的財務和營運表現。

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.

以下討論可能包含前瞻性陳述。請注意，實際結果可能與這些陳述有重大差異。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'll hear from Richard Hayne, CEO URBN; Frank Conforti, Co-President and COO URBN; Tricia Smith, Global CEO, Anthropologie Group; Shea Jensen, President, Urban Outfitters North America; and Melanie Marein-Efron, CFO from URBN.

在今天的電話會議上，您將聽到 URBN 執行長 Richard Hayne 的演講； Frank Conforti，URBN 聯席總裁兼營運長； Tricia Smith，Anthropologie 集團全球執行長； Shea Jensen，Urban Outfitters 北美區總裁；以及 URBN 財務長 Melanie Marein-Efron。

Following that, we will be pleased to address your questions. For more detailed commentary on our quarterly performance and the text of today's conference call, please refer to our Investor Relations website at www.urbn.com.

接下來，我們將很樂意回答您的問題。有關我們季度業績的更詳細評論和今天電話會議的文本，請參閱我們的投資者關係網站 www.urbn.com。

I will now turn the call over to Frank.

我現在將把電話轉給弗蘭克。

Thank you, Oona. And good afternoon, everyone. Today, I will discuss our total company's second quarter results versus the prior year, followed by some more detailed notes by brand. I will also provide some commentary on our current trends and the macro environment.

謝謝你，烏娜。大家下午好。今天，我將討論我們公司第二季的整體業績與前一年相比，然後按品牌進行一些更詳細的說明。我也會對我們當前的趨勢和宏觀環境進行一些評論。

Overall, the teams delivered an exceptional quarter, which was nicely ahead of our plans, as discussed on the first quarter call. Total URBN sales grew by 6% to a Q2 record of $1.4 billion. And four of our five brands continued to perform remarkably well, posting record second quarter sales and profits.

總的來說，團隊交付了一個出色的季度，這遠遠超出了我們在第一季電話會議上討論的計劃。第二季 URBN 總銷售額成長 6%，達到 14 億美元，創歷史新高。我們的五個品牌中有四個繼續表現出色，第二季銷售額和利潤創下歷史新高。

Our sales growth was driven in part by a Retail segment comp of 2%. Anthropologie and Free People produce a high single-digit positive retail segment comp which more than offset the high single-digit retail segment comp decline at Urban Outfitters. Nuuly also delivered robust double-digit revenue growth due to a 55% increase in average active subscribers versus the prior year. Additionally, the wholesale segment increased revenue by 15%, driven by a healthy increase in regular price sales at Free People.

我們的銷售成長部分是由零售部門 2% 的成長率所推動的。 Anthropologie 和 Free People 創造了高個位數的正規零售業績，抵消了 Urban Outfitters 高個位數的零售業績下降。 Nuuly 的平均活躍用戶數比上年增加了 55%，因此營收也實現了兩位數的強勁成長。此外，在 Free People 正常價格銷售健康成長的推動下，批發部門的收入成長了 15%。

Now, moving on to gross profit. URBN gross profit dollars increased 8% to $493 million while gross profit rate improved by 68 basis points to 36.5%. The improvement in gross profit rate was primarily due to increased initial merchandise margins driven by strong execution of cross-functional brand initiatives in the retail, wholesale, and Nuuly segments. These improvements were partially offset by a higher markdown rate at Urban Outfitters as the brand used incremental discounts to move through excess inventory.

現在，轉向毛利。 URBN 毛利成長 8%，達到 4.93 億美元，毛利率提高 68 個基點，達到 36.5%。毛利率的提高主要是由於零售、批發和 Nuuly 領域跨職能品牌計劃的大力執行推動了初始商品利潤的增加。這些改善被 Urban Outfitters 較高的降價率所部分抵消，因為該品牌使用增量折扣來清理多餘的庫存。

Now, moving on to SG&A expenses. For the quarter SG&A, increased 8% versus the prior comparable quarter and deleveraged by 32 basis points. The deleverage was primarily due to the Urban Outfitters brand not being able to reduce SG&A at the same rate as their sales decline. While we did reduce our SG&A spending at the Urban Outfitters brand in Q2, we did not believe it was prudent to reduce expenses at the same rate of sales.

現在，轉向銷售、管理及行政費用。本季 SG&A 較上一季成長 8%，去槓桿化 32 個基點。去槓桿化的主要原因是 Urban Outfitters 品牌無法以銷售額下降的速度減少銷售及管理費用。雖然我們確實在第二季減少了 Urban Outfitters 品牌的銷售、一般行政費用 (SG&A) 支出，但我們認為以相同的銷售額減少支出並不明智。

The increase in total company SG&A expense dollars was largely due to increased marketing spend, supporting the solid sales growth at Anthropologie, Free People, FP Movement, and Nuuly brands. Anthropologie and Free People brands marketing efforts helped to drive double-digit traffic gains to the store and digital channels while Nuuly's marketing campaigns helped to produce over 50% active subscriber growth.

該公司 SG&A 支出總額的增加主要是由於行銷支出增加，支持了 Anthropologie、Free People、FP Movement 和 Nuuly 品牌銷售的穩健成長。 Anthropologie 和 Free People 品牌的行銷工作幫助推動商店和數位管道的兩位數流量成長，而 Nuuly 的行銷活動幫助實現了超過 50% 的活躍用戶成長。

Total URBN operating income increased 10% versus last year to $145 million with operating profit rate improving 36 basis points to 10.7%. Net income increased 13% to $117 million or $1.24 per diluted share.

URBN 總營業收入較去年增長 10%，達到 1.45 億美元，營業利益率提高 36 個基點，達到 10.7%。淨利潤成長 13%，達到 1.17 億美元，即稀釋後每股收益 1.24 美元。

I will now provide more details by brand, starting with Free People. The Free People team produced an outstanding quarter with global Free People Group sales increasing 10%. The double-digit increase in sales was driven by an impressive 7% retail segment comp and an 18% increase in wholesale segment revenues. The 7% retail segment comp gain was on top of the incredible 27% retail segment comp from last year. The sales comp was driven by a similar comp in both the digital and store channels.

我現在將按品牌提供更多詳細信息，從 Free People 開始。 Free People 團隊創造了一個出色的季度業績，全球 Free People Group 銷售額成長了 10%。銷售額兩位數的成長是由令人印象深刻的 7% 的零售部門收入成長和 18% 的批發部門營收成長所推動的。零售部門的年增幅為 7%，而去年零售部門的年增幅高達 27%，令人難以置信。銷售競爭是由數位和商店通路中類似的競爭所驅動的。

During the quarter, the Free People brand achieved positive sales growth across apparel, accessories, and movement. The FP Movement brand delivered 18% total growth driven by a 6% retail segment comp, new store growth and over 60% wholesale segment growth. Congratulations to the Free People team on delivering another strong quarter even while up against last year's exceptional second quarter performance.

本季度，Free People 品牌在服裝、配件和運動領域實現了積極的銷售成長。 FP Movement 品牌實現了 18% 的總成長，這得益於 6% 的零售細分市場成長、新店成長和超過 60% 的批發細分市場成長。恭喜 Free People 團隊在去年第二季表現出色的同時，又實現了強勁的季度業績。

Customer response to the brand's fall trends has been positive and the brand continues to gain market share. We believe the brand could deliver a low to mid-single-digit positive retail segment comp in the third quarter.

顧客對該品牌秋季趨勢的反應積極，該品牌不斷獲得市場份額。我們相信該品牌可以在第三季實現低至中個位數的正零售業績。

The Free People wholesale segment sales increased 18% during the quarter, driven by full price sales gains in department and specialty stores, partially offset by an intentional decline in sales to the closeout channel. The FP Movement brand led the way with strong sales growth in the quarter. Segment profitability improved significantly from the prior year when the brand had elevated closeout channel sales to reduce aging products. We believe the wholesale segment could continue to deliver double-digit sales growth and improved profitability versus last year in the third quarter.

Free People 批發部門的銷售額在本季成長了 18%，這得益於百貨公司和專賣店全價銷售成長，但部分被清倉通路銷售額的有意下降所抵銷。 FP Movement 品牌在本季的銷售成長強勁，一馬當先。與前一年相比，該品牌提高了清倉通路銷售額以減少老化產品，該部門的獲利能力顯著提高。我們認為，第三季批發業務將繼續實現兩位數的銷售成長，獲利能力較去年有所提高。

Now, moving on to the Urban Outfitters brand. Urban Outfitters recorded a 9% retail segment comp decline in the quarter. This was largely in line with our expectations when we spoke with you in May, with both North America and Europe showing slight improvement from their Q1 performance driven in part by higher promotions. UO's negative comp was a result of disappointing performance in both North America and Europe. Global Retail segment comp declined in both the digital and store channels.

現在，我們轉向 Urban Outfitters 品牌。 Urban Outfitters 本季零售業務年減 9%。這在很大程度上符合我們五月與您交談時的預期，北美和歐洲的第一季業績較第一季略有改善，部分原因是促銷力度加大。 UO 的表現不佳是由於其在北美和歐洲的表現令人失望。全球零售部門的數位和商店通路業績均出現下滑。

As noted on the last call, both the home and women's accessories categories are showing positive trends. Both categories recorded double-digit positive regular price comps driving nicely positive, maintained margin dollar and rate improvements. All other category sales comps declined in the quarter.

正如上次電話會議中指出的那樣，家居和女性配件類別都呈現出積極的趨勢。這兩個類別均錄得兩位數的正常規價格比較，推動了良好的正面成長，維持了利潤率和利率的提高。本季所有其他類別的銷售業績均有所下降。

As you know, new leadership joined the brand in North America earlier this year; and Shea Jensen, the President of UO North America, will speak later to the go-forward brand strategy in North America.

如您所知，今年早些時候，新的領導層加入了品牌在北美的業務。 UO 北美區總裁 Shea Jensen 稍後將談到北美地區的前進品牌策略。

Finally, I will touch on the Nuuly business, which delivered another exceptional quarter. Nuuly added over 25,000 average active subscribers versus the first quarter, ending the quarter with over 250,000 average active subscribers for the full quarter. The solid growth in average subscribers led in part to a 63% increase in brand revenue. As we have noted, historically, Nuuly experiences the most significant growth in subscribers during the seasonally strong first and third quarters. A strong start in August bodes well for the Nuuly brand to continue to deliver healthy revenue growth in the third quarter.

最後，我將談談 Nuuly 業務，這項業務又實現了出色的季度業績。與第一季相比，Nuuly 的平均活躍用戶數量增加了 25,000 多名，截至本季末，整個季度的平均活躍用戶數量超過 25 萬名。平均訂閱用戶的穩健成長在一定程度上導致品牌收入成長了 63%。正如我們所指出的，從歷史上看，Nuuly 在季節性強勁的第一季和第三季經歷了最顯著的訂戶成長。 8 月的強勁開局預示著 Nuuly 品牌將在第三季繼續實現健康的收入成長。

The strong revenue growth in the second quarter led to expense rate leverage in almost every expense line item and resulted in a record operating profit of $5.3 million and a 5.9% operating margin for the brand. We believe this level of profitability could continue in the back half of the year, which would make Nuuly profitable on a full year basis this year. Congratulations to the Nuuly team on an exceptional quarter.

第二季營收的強勁成長導致幾乎所有費用項目都實現了費用率槓桿，並為該品牌帶來了創紀錄的 530 萬美元營業利潤和 5.9% 的營業利潤率。我們相信這種獲利水準可能會在今年下半年持續下去，這將使 Nuuly 今年全年獲利。恭喜 Nuuly 團隊度過了一個出色的季度。

Now, on to more recent trends in the macro environment. Towards the end of July and into August, we have observed a slight deceleration in retail segment sales compared to the second quarter run rate. While consumer traffic has remained consistent, overall purchasing activity has shown some softening. New product launches continue to resonate well, though customers appear to be exercising more discretion in their buying decisions.

現在，談談宏觀環境的最新趨勢。到 7 月底和 8 月份，我們觀察到零售部門的銷售與第二季的運行速度相比略有放緩。雖然消費者流量保持穩定，但整體購買活動放緩。儘管客戶在購買決定時似乎更加謹慎，但新產品的推出仍然引起了良好的迴響。

Given the recency of these trends, we are approaching our third quarter plans with measured caution. There are likely various macroeconomic factors influencing consumer behavior at this time, making it difficult to pinpoint specific causes. However, it is evident that the consumer sentiment has softened recently, and the duration of this trend remains uncertain.

鑑於這些趨勢的近期出現，我們正在謹慎對待第三季計劃。目前影響消費者行為的宏觀經濟因素可能有多種，因此很難確定具體原因。然而，近期消費者情緒顯然已經疲軟，而且這種趨勢的持續時間仍不確定。

During this time of uncertainty, we believe it is prudent to keep inventory levels lean and manage expenses appropriately, and that is exactly what we plan to do. Despite a deceleration in trend, total company sales remain positive, and we believe retail segment comps could grow in the low single-digit range for the third quarter. Positive retail segment comps, combined with robust revenue growth from Nuuly and double-digit growth in the wholesale segment, could result in a mid-single-digit increase in total Q3 URBN sales.

在這個充滿不確定性的時期，我們認為保持庫存水準精簡並適當管理費用是謹慎的做法，而這正是我們計劃要做的。儘管趨勢放緩，但公司總銷售額仍保持正值，我們認為第三季零售部門的業績可能會在較低的個位數範圍內增長。零售部門的積極業績，加上 Nuuly 的強勁收入成長和批發部門的兩位數成長，可能會導致第三季 URBN 總銷售額出現中個位數成長。

I will now turn the call over to Tricia Smith, Global CEO of the Anthropologie Group, to provide details on their brand's second quarter performance as well as a strategic update.

我現在將把電話轉給 Anthropologie 集團全球首席執行官 Tricia Smith，提供有關其品牌第二季度業績的詳細資訊以及策略更新。

Thank you, Frank. And good afternoon, everyone. I'm delighted to have the opportunity to speak to you again about the Anthropologie Group's strategic growth initiatives and our continued top line and bottom-line growth in Q2.

謝謝你，弗蘭克。大家下午好。我很高興有機會再次與您談論 Anthropologie 集團的策略性成長計劃以及我們在第二季度的持續營收和利潤成長。

This quarter marks our 14th consecutive quarter of growth. We delivered a 7% retail segment comp with similar results in the store and digital channels. Our women's apparel and accessory business continues to lead our growth with a double-digit comp increase driven by our owned brand penetration increasing several hundred basis points. In our home business, we're seeing signs of improvement with our trend shifting up to low single-digit negative comps.

本季標誌著我們連續第 14 個季度實現成長。我們實現了 7% 的零售細分市場比較，在商店和數位通路中也取得了類似的結果。我們的女裝和配件業務持續引領我們的成長，在我們自有品牌滲透率增加數百個基點的推動下，公司業績實現了兩位數的成長。在我們的家庭業務中，我們看到了改善的跡象，我們的趨勢轉向低個位數的負值。

We're particularly proud that our top line growth is complemented by even greater growth in profit. The brand delivered record second quarter operating income, up 32%, supported by IMU growth, continued markdown efficiency, and operational improvements. This marks our seventh consecutive quarter of double-digit operating income growth.

我們感到特別自豪的是，我們的收入成長得到了利潤的更大成長。在 IMU 成長、持續降價效率和營運改善的支持下，該品牌第二季營業收入創紀錄成長 32%。這標誌著我們連續第七個季度營業收入達到兩位數成長。

As the quarter progressed, we saw a slight deceleration in July that continued into August, and we're anticipating low to mid-single-digit comp increases in the third quarter. We anticipate that we will be more promotional in Q3 than we were last year to ensure that our inventory is more aligned to the current sales trends as we enter Q4.

隨著本季的進展，我們看到 7 月份略有減速，並持續到 8 月份，我們預計第三季的複合成長率將達到低至中個位數。我們預計，第三季我們將比去年進行更多促銷，以確保進入第四季時我們的庫存更符合當前的銷售趨勢。

Now, shifting to our longer-term strategy. Over the last two years, our team has elevated product and creative, grown our customer base, and enhanced our selling environment. We are transforming our business to continue to support the expansive growth that we've experienced.

現在，轉向我們的長期策略。在過去的兩年裡，我們的團隊提升了產品和創意，擴大了我們的客戶群，並改善了我們的銷售環境。我們正在改變我們的業務，以繼續支持我們所經歷的廣泛成長。

Since I shared our strategic priorities with you last summer, we've exceeded the goals we set for ourselves and evolved our priorities. Our North Star remains the same, and we continue to identify new opportunities for growth taking us from $1.6 billion in FY20 pre-COVID to last year's $2.2 billion and looking ahead toward our $3 billion ambition. We have adopted an accelerated growth mindset, founded on a rapid test-and-learn methodology across the business. We're testing, reacting, and amplifying successes.

自從我去年夏天與大家分享我們的策略重點以來，我們已經超越了為自己設定的目標，並不斷發展我們的重點。我們的北極星保持不變，我們繼續尋找新的成長機會，使我們的收入從 20 財年新冠疫情爆發前的 16 億美元增至去年的 22 億美元，並展望未來 30 億美元的雄心壯志。我們採用了一種加速成長的思維方式，這種思維方式建立在整個企業的快速測試和學習方法的基礎上。我們正在測試、做出反應並擴大成功。

In our women's business, three years ago when seeking to modernize our product, we started with what we're the most famous for. We accelerated dresses and built our denim and shoe assortment. Additionally, we strengthened our apparel owned brands, increasing their contribution to nearly 70% of the business. Pilcro, our lifestyle denim brand, has grown at a rate outpacing our top line since last year. And Maeve, a customer favorite, is our most profitable owned brand and has seen strong double-digit growth year-over-year.

在我們的女裝業務中，三年前，當我們尋求產品現代化時，我們從我們最著名的產品開始。我們加快了洋裝的開發速度，並打造了牛仔布和鞋子系列。此外，我們還加強了我們的服裝自有品牌，使其對業務的貢獻增加了近 70%。自去年以來，我們的生活風格牛仔品牌 Pilcro 的成長速度超過了我們的營收成長速度。 Maeve 是深受顧客喜愛的品牌，也是我們獲利能力最強的自有品牌，並且與去年同期相比實現了兩位數的強勁成長。

Looking forward, we see opportunity for further growth by expanding the end-use offering of our products to serve our customers' full lifestyle through three new concepts. We're building our active and loungewear business on our own brand, Daily Practice, offering a year-round assortment of sleeper and intimates in all stores and a vacation lifestyle capsule in select locations seasonally and online year-round. These owned brand collections are supplemented with market brands who have authority within the space.

展望未來，我們看到了進一步成長的機會，透過三個新概念擴大我們產品的最終用途，為客戶的全面生活方式提供服務。我們正在以自有品牌 Daily Practice 打造運動服和家居服業務，在所有商店全年提供各種睡衣和內衣，並在特定地點按季節提供度假生活方式膠囊，並全年在線提供。這些自有品牌系列得到了在該領域具有權威的市場品牌的補充。

Six months ago, we tested doubling the store square footage of these concepts and the test resulted in improved overall store performance with test stores outpacing control stores and the growth of the total women's category as well as the Daily Practice collection. And given the success of that test, we've rolled out the expansion to 50 locations.

六個月前，我們測試了將這些概念的商店面積增加一倍，測試結果改善了商店的整體業績，測試商店的速度超過了對照商店，並且女裝類別和 Daily Practice 系列的總體增長。鑑於該測試的成功，我們已將業務擴展至 50 個地點。

In our home business, we're well positioned in categories that resonate with customers around entertaining and refreshing their home decor. For example, our Q2 home accessories business, which includes categories such as home fragrance and tabletop, has grown high single digits year-over-year. We spent the last 18 months laying the foundation for more profitable growth in the home category.

在我們的家居業務中，我們在與客戶產生娛樂性和煥然一新的家居裝飾方面產生共鳴的類別中處於有利地位。例如，我們第二季的家居飾品業務（包括家居香氛和桌面等品類）同比實現了高個位數成長。過去 18 個月，我們為家居類別的利潤成長奠定了基礎。

In the home business, as you know, product profitability is impacted significantly by factors other than IMU. And we've engineered operational efficiencies upon which we can more profitably grow our business. We are applying our rapid testing approach in Anthropologie Home, taking strategic risks, and fueling newness.

如您所知，在家庭業務中，產品獲利能力受到 IMU 以外因素的顯著影響。我們也提高了營運效率，從而可以更有利地發展我們的業務。我們正在 Anthropologie Home 中應用我們的快速測試方法，承擔策略風險，並推動創新。

Our customers are responding to our products and our inspirational creative assets and at the same time, appealing to and helping us speak to more customers. Since FY20, through the end of last year, we have grown our customer base by an additional 1 million customers, up 30%. Of this, our new customer was the fastest-growing segment at plus 52% while we have also seen double-digit growth in retained customers. In addition, our sales per customer has grown over 20%.

我們的客戶對我們的產品和鼓舞人心的創意資產做出回應，同時吸引並幫助我們與更多客戶交談。自 2020 財年以來，到去年年底，我們的客戶群新增了 100 萬名客戶，成長了 30%。其中，我們的新客戶是成長最快的部分，成長了 52%，同時我們的保留客戶也實現了兩位數的成長。此外，我們的每位客戶銷售額成長了 20% 以上。

In addition to growing our total customer base and their value, we have simultaneously welcomed a younger demographic to our brand, especially in our women's division, where we've seen a two-year reduction in the average age of our new customers in the last year. Furthermore, we're speaking to our customers as omnichannel customers, not just retail or digital. Our omnichannel customers spend 4 times what single channel customer spend, contributing to the consistent growth we see across both channels. We're investing in all channels and points of customer contact to enhance the excelling experience in digital, in stores, and in our call centers.

除了擴大我們的總客戶群及其價值之外，我們還同時歡迎更年輕的人群加入我們的品牌，特別是在我們的女裝部門，我們的新客戶的平均年齡在過去兩年下降了年。此外，我們將客戶視為全通路客戶，而不僅僅是零售或數位客戶。我們的全通路客戶支出是單一通路客戶支出的 4 倍，這促成了我們在兩個管道上看到的持續成長。我們正在對所有管道和客戶聯繫點進行投資，以增強數位、商店和呼叫中心的卓越體驗。

We are adding stores at a more rapid rate than we have in a decade. Since FY20, our four-wall profitability has grown over 900 basis points while our same-store sales have increased almost 20%. Our plan to grow the Anthropologie fleet to 270 stores globally is well underway. Having acquired 1 million new customers, we're leveraging omnichannel data to position our stores where we know we have customers, particularly as customers are migrating to different geographies and markets. And we're honored with the welcome reception we've received in those communities.

我們正在以比十年來更快的速度增加商店。自 2020 財年以來，我們的四牆獲利能力成長了 900 個基點以上，而同店銷售額則成長了近 20%。我們將 Anthropologie 門市擴大到全球 270 家門市的計畫正在順利進行中。在獲得了 100 萬新客戶後，我們正在利用全通路數據將我們的商店定位在我們知道有客戶的地方，特別是當客戶遷移到不同的地理位置和市場時。我們很榮幸能夠在這些社區受到歡迎。

As we open stores in new markets, along with strong new store sales, we also see significant increases in digital demand for our omni approach is about creating a consistent and outstanding experience across channels. We are proud of our transformation, and I'm proud of the exceptional team delivering our results. I'm confident in our continued growth on our path to become a $3 billion brand, and I look forward to providing you with more updates in the future.

隨著我們在新市場開設商店以及強勁的新店銷售，我們也看到數位化需求顯著增加，因為我們的全方位方法旨在跨通路創造一致且出色的體驗。我們為我們的轉型感到自豪，我為交付我們成果的卓越團隊感到自豪。我對我們在成為價值 30 億美元的品牌的道路上持續發展充滿信心，我期待在未來為您提供更多更新。

I'll now turn the call back to Frank.

我現在將電話轉回給弗蘭克。

Thank you, Tricia. Congratulations on the incredible performance and exciting strategic update. Next up is Shea Jensen, Urban Outfitters American President. She will be speaking to the UO North America's updated brand review and strategic plan.

謝謝你，特里西亞。恭喜您令人難以置信的表現和令人興奮的策略更新。接下來是 Urban Outfitters 美國總裁 Shea Jensen。她將就 UO 北美區最新的品牌回顧和策略計劃發表演講。

Thank you, Frank. And good afternoon, everyone. I'm pleased to share an update on the Urban Outfitters brand, North America.

謝謝你，弗蘭克。大家下午好。我很高興與大家分享 Urban Outfitters 品牌在北美的最新動態。

Over the past few years, Urban Outfitters North America has faced significant challenges in both top and bottom-line performance. And over the past six months, with new leadership in place, the team has conducted an extensive review of the brand. We have assessed our market position, customer health, product assortments, marketing, including our creative perspective, our selling channel touch points, and our talent.

在過去的幾年裡，Urban Outfitters North America 在營收和利潤方面都面臨著巨大的挑戰。在過去的六個月裡，隨著新領導層的到位，該團隊對該品牌進行了廣泛的審查。我們評估了我們的市場地位、客戶健康狀況、產品種類、行銷，包括我們的創意視角、我們的銷售管道接觸點和我們的人才。

What we have learned is that while there is a great deal of opportunity for improvement, the brand is not fundamentally broken. We believe the erosion in sales and profits is due to a combination of a lack of focus and clarity on our customer in a dynamic and changing market and poor execution in the absence of a wholly dedicated leadership team. We are confident that with the right team in place and the right approach, Urban Outfitters can rebuild our customer base, restore profitability, and restate our position as one of the most beloved brands for young customers.

我們了解到，雖然還有很多改進的機會，但品牌並沒有從根本上被打破。我們認為，銷售和利潤的下降是由於在動態多變的市場中缺乏對客戶的關注和明確性，以及在缺乏完全敬業的領導團隊的情況下執行不力造成的。我們相信，憑藉合適的團隊和正確的方法，Urban Outfitters 能夠重建我們的客戶群，恢復盈利能力，並重申我們作為年輕客戶最喜愛的品牌之一的地位。

Our segment has seen rapid and seismic shifts as the generational passage from millennials to Gen Z has occurred amidst a global pandemic. As these shifts occurred and a new generation began coming of age, we lost focus on our customer, and we lost track of how to win with them in today's dynamic retail environment. As a result, our customer funnel eroded as we did not acquire enough new customers, and our retention rates declined as well. Additionally, the lack of clarity and focus on customers impacted our product strategies, our marketing strategies, and our channel experience across our touch points.

在全球大流行期間，隨著從千禧世代到 Z 世代的世代交替，我們的細分市場發生了快速且巨大的變化。隨著這些轉變的發生以及新一代的成長，我們失去了對客戶的關注，也忘記瞭如何在當今動態的零售環境中贏得他們的青睞。結果，由於我們沒有獲得足夠的新客戶，我們的客戶管道被侵蝕，我們的保留率也下降了。此外，缺乏對客戶的明確性和關注影響了我們的產品策略、行銷策略以及跨接觸點的通路體驗。

In the short term, our focus has been on stabilizing our business. We have strengthened our leadership team, adding subject matter expertise across all critical functions, corrected our inventory levels so that we are entering the second half of this year with clean inventory and new fresh product. And perhaps, most importantly, work to gain a solid understanding of young customers today through extensive customer research, both qualitative and quantitative. These insights will guide our path forward and help shape our strategy.

短期內，我們的重點是穩定我們的業務。我們加強了我們的領導團隊，在所有關鍵職能領域增加了主題專業知識，糾正了我們的庫存水平，以便我們以乾淨的庫存和新的新鮮產品進入今年下半年。也許最重要的是，透過廣泛的定性和定量客戶研究，努力深入了解當今的年輕客戶。這些見解將指導我們前進的道路並幫助制定我們的策略。

Looking ahead, we have established five pillars to recover the brand and return to growth. Our ambition is to become the definitive brand for young adults. The five pillars of brand recovery that we have identified are: First, we have defined and will consistently focus on our target customer. Second, with a clear and united understanding of who our customers are, we will rebuild our customer base by investing in marketing strategies that meet young customers where they are and build affinity with our brand. Third, we will evolve our product offer to be more relevant to a broader range of target customers. Fourth, we will maintain focus on disciplined inventory investments, ensuring our investments drive improved full-price sell-through and meet the demand of our customers. And finally, we will adapt our touchpoints to be more relevant for Gen Z consumers.

展望未來，我們建立了五個支柱來恢復品牌並恢復成長。我們的目標是成為年輕人的權威品牌。我們確定的品牌復甦的五個支柱是：首先，我們已經定義並將持續關注我們的目標客戶。其次，在對我們的客戶是誰有清晰而統一的了解後，我們將透過投資行銷策略來重建我們的客戶群，以滿足年輕客戶的需求，並與我們的品牌建立親和力。第三，我們將改進我們的產品，使其與更廣泛的目標客戶更相關。第四，我們將繼續專注於嚴格的庫存投資，確保我們的投資推動全價銷售的改善並滿足客戶的需求。最後，我們將調整我們的接觸點，使其與 Z 世代消費者更加相關。

Our first step was to gain a firm understanding of Gen Z consumers. Today, the Gen Z consumer is significantly different than the millennial generation before them from size, ethnicity, tastes, and occasions to how they view and interact with the world. We have traditionally targeted an aspirational 22-year-old customer living in major metropolitan cities. Our new customer segmentation broadens our target and aligns customers across three segments: younger suburban pre-college customers, a college-age student, and an older post-college customer.

我們的第一步是深入了解 Z 世代消費者。如今，Z 世代消費者在體型、種族、品味、場合以及看待世界和與世界互動的方式等方面都與之前的千禧世代顯著不同。傳統上，我們的目標客戶是居住在大城市的 22 歲有抱負的客戶。我們新的客戶細分擴大了我們的目標，並將客戶分為三個細分市場：年輕的郊區大學預科客戶、大學生和年齡較大的大學畢業後客戶。

We welcome and want to serve today's population of young customers across more prices and sizes, more categories and occasions, and across more aesthetics and sensibilities in both urban and suburban areas. This includes pivoting from our traditionally alternative sensibility to offering a more upbeat and welcoming perspective across our assortment and our touch points.

我們歡迎並希望為當今城市和郊區的年輕消費者提供更多價格和尺寸、更多類別和場合以及更多美學和情感的服務。這包括從我們傳統的另類敏感度轉向在我們的品類和接觸點上提供更樂觀和熱情的視角。

With this in mind, our goal is to welcome more people into our brand. We will rebuild our customer base by refreshing our brand identity, clarifying our mission, vision, and values, evolving our creative expressions across our touch points, and repositioning Urban Outfitters to be a more welcoming and relevant brand for young customers today.

考慮到這一點，我們的目標是歡迎更多人加入我們的品牌。我們將透過更新我們的品牌形象、明確我們的使命、願景和價值觀、在我們的接觸點上發展我們的創意表達方式以及將Urban Outfitters 重新定位為當今年輕顧客更受歡迎、更相關的品牌來重建我們的客戶群。

Additionally, we are already actively strengthening our presence across social media platforms and reallocating our marketing investments to prioritize the acquisition of new customers. We believe that our approach will yield healthier levels of organic traffic and high customer acquisition rates to continuously fuel our customer funnel.

此外，我們已經在積極加強我們在社群媒體平台上的影響力，並重新分配我們的行銷投資，以優先考慮獲取新客戶。我們相信，我們的方法將產生更健康的自然流量水準和高客戶獲取率，從而持續推動我們的客戶管道。

Next, we will evolve our product offer to serve a broader range of customers. We believe our product assortment has unintentionally become too narrow in price, occasion, and sensibility and needs broader appeal. With insights driving our path forward, we will increase the penetration of opening price points as well as ensure we offer the best price value combination on every item we sell. We will broaden our category range and ensure we are meeting the lifestyle and occasion needs of our target customers.

接下來，我們將改進我們的產品系列，為更廣泛的客戶提供服務。我們認為，我們的產品種類無意中在價格、場合和敏感度方面變得過於狹窄，需要更廣泛的吸引力。憑藉洞察推動我們前進的道路，我們將提高開放價格點的滲透率，並確保我們為我們銷售的每件商品提供最佳的價格價值組合。我們將擴大品類範圍，確保滿足目標客戶的生活方式和場合需求。

We do not believe this means an increase in total SKUs, but rather a more accurate representation of the right products across the total assortment. This does include better accuracy and allocation of sizes and improving the productivity of the total offering through assortment planning and allocation that is rooted in our customer strategy.

我們認為這並不意味著 SKU 總數的增加，而是意味著整個品種中正確產品的更準確表示。這確實包括提高尺寸的準確性和分配，以及透過植根於我們的客戶策略的分類規劃和分配來提高整個產品的生產力。

We plan to introduce new categories such as Athleisure, distort into the categories we've heard matter to our customers such as denim and lounge and amplify the categories where we uniquely differentiate such as gifting and beauty. We are also excited to rebuild our branded assortment through partnerships with aspirational, influential, and credible national brands that matter to young customers today. We anticipate our customer-focused product strategies will deliver a higher penetration of full-price sales and full-price sales growth and a reduced dependency on promotionality.

我們計劃推出運動休閒等新類別，融入我們聽說過的對客戶很重要的類別，如牛仔布和休閒服，並擴大我們獨特的差異化類別，如禮品和美容。我們也很高興能夠透過與當今年輕消費者關注的有抱負、有影響力和可信賴的民族品牌合作來重建我們的品牌品種。我們預計，以客戶為中心的產品策略將提高全價銷售的滲透率和全價銷售的成長，並減少對促銷的依賴。

We know sentiment and style can move fast with young customers. And in order to leverage the incredible scale of the URBN sourcing and speed-to-market capabilities, we need to maintain inventory discipline and better align our sales to inventory levels. By utilizing more data-driven planning and allocation capabilities, we will reduce our markdowns, work to restore profitability, and position our teams to fuel growth by making decisions closer to our customers. As we enter the second half of this year with clean inventory, we expect our turns to improve on a regular cadence.

我們知道年輕顧客的情感和風格可以快速變化。為了利用 URBN 令人難以置信的採購規模和快速上市能力，我們需要維持庫存紀律，並更好地使我們的銷售與庫存水準保持一致。透過利用更多數據驅動的規劃和分配能力，我們將減少降價，並努力恢復獲利能力，並使我們的團隊透過做出更貼近客戶的決策來推動成長。隨著我們進入今年下半年，庫存清理完畢，我們預計我們的周轉率將以常規節奏提高。

Finally, we heard from our customers that a combination of social, digital, and in real life or physical shopping, are equally important components of the shopping experience. Gen Zs coming of age experience began during a global pandemic and the idea of connecting a shopping experience through the discovery of social media, the convenience of digital shopping, and the connection that can be made in physical retail is table stakes.

最後，我們從客戶那裡得知，社交、數位和現實生活或實體購物的結合是購物體驗的同等重要組成部分。 Z世代的成長體驗始於全球大流行期間，透過社交媒體的發現、數位購物的便利性以及實體零售中可以建立的聯繫來連接購物體驗的想法是賭注。

We are advantaged with our retail footprint and omnichannel capabilities. We will work to optimize our footprint to ensure our locations are positioned near our target demographic and ensure we better align the size of our stores with our new vision for physical and retail and the store experience.

我們的零售足跡和全通路能力具有優勢。我們將努力優化我們的足跡，以確保我們的門市靠近目標人群，並確保我們的商店規模更好地符合我們對實體和零售以及商店體驗的新願景。

We believe we have an opportunity to close some store locations where population shifts have occurred to relocate some stores to be more adjacent to our target customers, but also to better align the size of our stores with our future needs. At the same time, we will work actively to optimize our stores through improved assortment strategies and localization.

我們相信，我們有機會關閉一些發生人口轉移的商店位置，以重新安置一些商店，使其更靠近我們的目標客戶，同時也使我們商店的規模更好地適應我們未來的需求。同時，我們將積極透過改進品類策略和在地化來優化我們的門市。

Finally, digital channels are where young customers live their lives. Our team is doubling down our engagement on social platforms and working to ensure our digital experience evolves to be an extension of that digital experience through more user-generated content, improved creative, and social features. Omnichannel customers are our most valuable customers, spending more than 3 times other customers. With an adapted channel experience, we expect our customer engagement and retention will grow, and ultimately, our percentage of omnichannel customers will increase.

最後，數位管道是年輕消費者的生活場所。我們的團隊正在加倍加強對社交平台的參與，並努力確保我們的數位體驗透過更多用戶生成的內容、改進的創意和社交功能發展成為數位體驗的延伸。全通路客戶是我們最有價值的客戶，支出是其他客戶的 3 倍以上。透過調整通路體驗，我們預期我們的客戶參與度和留任率將會提高，最終我們的全通路客戶比例將會增加。

Despite our current challenges, we are optimistic about the steps we are taking to revitalize Urban Outfitters North America. In the short term, we are looking to see sequential top line improvement with a building penetration of full-price sales, which should drive stronger bottom line improvement.

儘管我們目前面臨挑戰，但我們對振興 Urban Outfitters North America 所採取的措施感到樂觀。短期內，我們希望看到隨著全價銷售滲透率的不斷提高，營收將持續改善，這將推動利潤的更強勁改善。

As we pivot our marketing strategies, we expect a build of our customer funnel while at the same time, we are working to evolve our product assortment and see full price sales grow. We recognize this may take time to fully materialize, but we are committed to rebuilding our customer base and restoring profitability.

當我們調整行銷策略時，我們期望建立客戶管道，同時我們正在努力發展我們的產品種類並看到全價銷售的成長。我們認識到這可能需要時間才能完全實現，但我們致力於重建我們的客戶群並恢復盈利能力。

The road ahead involves focused execution on our five recovery pillars. With a solid leadership team in place, we're optimistic about our strategy, the path ahead, and our ambition to become the definitive brand for young adults.

未來的道路需要集中執行我們的五個復甦支柱。憑藉著堅實的領導團隊，我們對我們的策略、未來的道路以及成為年輕人權威品牌的雄心壯志持樂觀態度。

I'll now turn the call over to Melanie.

我現在將電話轉給梅蘭妮。

Thank you, Shea. Now, I will discuss our thoughts on the third quarter financial performance and fiscal year FY25 performance.

謝謝你，謝伊。現在，我將討論我們對第三季財務業績和 2025 財年業績的看法。

As Frank mentioned, we have seen a slight deceleration in trends recently, but our total company sales remained positive. Right now, we believe that third quarter total company sales growth could be mid-single digits. Sales growth in Q3 could result from low single-digit growth in retail segment comp and low-teen growth in the wholesale segment. In addition, we believe the newly segment sales growth could be mid-double digits.

正如弗蘭克所提到的，我們最近看到趨勢略有放緩，但我們公司的總銷售額仍然保持正值。目前，我們認為第三季公司總銷售額成長可能為中個位數。第三季的銷售成長可能是由於零售部門的低個位數成長和批發部門的低雙位數成長所致。此外，我們認為新細分市場的銷售成長可能達到中兩位數。

Now, on to gross profit margin. We believe URBN's gross margin rate for the third quarter could decline by approximately 100 basis points compared to the prior year third quarter. The reduction in gross profit margin could be primarily due to higher markdowns as our third quarter receipt plans were ordered prior to the recent deceleration. As a result, we will need to add incremental promotional activity and markdowns in the quarter to clear through inventory as we enter the fourth quarter. We continue to believe that URBN can deliver our full year plan of approximately 50 basis points to 100 basis points of gross margin improvement compared to the prior year.

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下降約100個基點。毛利率的下降可能主要是由於降價幅度較高，因為我們的第三季收貨計劃是在最近的減速之前訂購的。因此，我們將需要在本季度增加增量促銷活動和降價活動，以在進入第四季度時清理庫存。我們仍然相信 URBN 能夠實現我們的全年計劃，毛利率較上年提高約 50 個基點至 100 個基點。

Now, moving on to SG&A expense. Based on our current sales performance and plan, we believe SG&A growth for the third quarter will increase in the mid-single digits. Our planned growth in SG&A could be primarily driven by higher marketing expense to support growth in customers and sales at Anthropologie, Free People, FP Movement, and Nuuly. 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 24.25% for the third quarter and 24% for the full year.

現在，轉向銷售、管理及行政費用。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達到中個位數。我們計劃的 SG&A 成長主要是由更高的行銷費用推動的，以支持 Anthropologie、Free People、FP Movement 和 Nuuly 的客戶和銷售成長。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。我們目前計劃第三季的有效稅率約為 24.25%，全年的有效稅率約為 24%。

Now, moving on to inventory. We believe that inventory levels in the third quarter could grow at a rate similar to sales growth. Capital expenditures for the fiscal year are planned at approximately $210 million. The FY25 capital project spend is broken down as follows: Approximately 50% is related to retail store expansion and support. Approximately 25% is related to logistics capacity investments, including the newly rental fulfillment center in Raymore, Missouri, which we opened in the first quarter. And the remaining 25% in would be our normal capital investments supporting IT, home office, and logistics operations.

現在，轉向庫存。我們認為第三季的庫存水準可能會以與銷售成長類似的速度成長。本財年的資本支出計畫約為 2.1 億美元。 25 財年資本項目支出細分如下： 約 50% 與零售店擴張與支援有關。大約 25% 與物流能力投資有關，包括我們在第一季開設的位於密蘇裡州雷莫爾的新租賃履行中心。剩下的 25% 將是我們支援 IT、家庭辦公室和物流營運的正常資本投資。

Lastly, we'll be opening approximately 57 new stores and closing approximately 25 stores. Our net new store growth is being driven by growth in FP Movement, Free People, and Anthropologie stores. During FY25, we plan on opening 25 FP Movement stores, 12 Free People stores, and 13 Anthropologie stores. 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，我們將開設約 57 家新店並關閉約 25 家店。我們的新店淨成長是由 FP Movement、Free People 和 Anthropologie 商店的成長所推動的。 25 財年期間，我們計劃開設 25 家 FP Movement 商店、12 家 Free People 商店和 13 家 Anthropologie 商店。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 am pleased to turn the call to Dick for closing remarks.

現在，我很高興請迪克致閉幕詞。

Thank you, Mel. And thank you to our brand leaders, Tricia, Sheila, Shea and Dave and in Europe, Em and Matt. They and their teams produced outstanding second quarter results.

謝謝你，梅爾。感謝我們的品牌領導者 Tricia、Sheila、Shea 和 Dave，以及歐洲的 Em 和 Matt。他們和他們的團隊在第二季度取得了出色的業績。

As Frank shared earlier, four of our five brands delivered record second quarter sales and profits, and the Urban brand, as Shea just discussed, has fashioned its strategy to win on a go-forward basis. Most importantly, the Urban brand now has a strong team in place to deliver on that strategy.

正如弗蘭克早些時候分享的那樣，我們的五個品牌中有四個在第二季度實現了創紀錄的銷售額和利潤，而正如謝伊剛剛討論的那樣，城市品牌已經制定了在前進的基礎上獲勝的戰略。最重要的是，Urban 品牌現在擁有一支強大的團隊來實現這項策略。

Turning to the current business climate. On our last conference call, I stated that the customer mood in Q1 was enthusiastic rather than the mood a year earlier, which was exuberant. I believe this is still an accurate description for Q2. Traffic in our stores remain strong, and online sessions remain double-digit positive at three of our four retail brands.

轉向當前的商業環境。在我們上次的電話會議上，我表示第一季的客戶情緒很熱情，而不是一年前的情緒旺盛。我相信這仍然是對第二季的準確描述。我們商店的客流量仍然強勁，四個零售品牌中的三個的線上會話量仍然保持兩位數的成長。

Fall products are selling briskly with customers choosing the newest fashion, yet all our retail brands registered a slight sales slowdown in mid-July that continues in August. So what's different? You may recall, I also said on the May call that consumer purchases were becoming slightly more considered than the previous year.

秋季產品銷售旺盛，顧客選擇最新時尚，但我們所有的零售品牌在 7 月中旬的銷售都出現了小幅放緩，這種情況一直持續到 8 月。那麼有什麼不同呢？您可能還記得，我還在五月的電話會議上說過，消費者的購買行為比去年更加謹慎。

With a slowdown starting in mid-July, purchases became even more considered. Conversion dropped slightly, and price became a bigger factor with AOV dipping slightly as well. Total transactions continue to grow, but the customer, on average, spent a little less on each purchase. We believe this suggests a return to pre-COVID behavior when our comp sales expectations were typically lower, and customers were more selective.

隨著七月中旬經濟放緩，購買變得更加謹慎。轉換率略有下降，價格成為更大的因素，AOV 也略有下降。交易總量持續成長，但客戶平均每次購買的花費減少。我們認為，這表明我們回到了新冠疫情之前的行為，當時我們的銷售預期通常較低，而且客戶的選擇性也更強。

We expect this will become the new reality. And as Frank discussed, will necessitate even stronger inventory and expense control. Our brand and shared service teams understand the new environment and are prepared to meet that challenge.

我們預計這將成為新的現實。正如弗蘭克所討論的，將需要更強有力的庫存和費用控制。我們的品牌和共享服務團隊了解新環境並準備好迎接這項挑戰。

Finally, a word about our youngest brand, Nuuly. The brand celebrated its fifth birthday in the second quarter and commemorated it by delivering another quarter of strong year-over-year double-digit gains in average active subscribers and revenue. They also posted record profits and became the number one fashion rental business in the US. Happy birthday, Nuuly. Congratulations on your success.

最後，談談我們最年輕的品牌 Nuuly。該品牌在第二季度慶祝了其五歲生日，並透過在平均活躍用戶和收入方面實現另一個季度同比強勁的兩位數增長來紀念這一點。他們也創造了創紀錄的利潤，成為美國第一大時裝租賃公司。生日快樂，努利。祝賀您成功。

That concludes our prepared remarks. I wish to thank our Co-Presidents, the brand design and shared service leaders, and their teams and our 28,000 associates worldwide for their excellent work. Our outstanding Q2 results flow directly from your creativity, drive, and resilience. So thank you. Thanks also to our many partners around the world. We appreciate the significant contributions you make to our success. And finally, thanks to our shareholders for your continued support.

我們準備好的演講到此結束。我要感謝我們的聯合總裁、品牌設計和共享服務領導者及其團隊以及我們全球 28,000 名員工的出色工作。我們出色的第二季業績直接源自於您的創造力、動力和韌性。所以謝謝你。也要感謝我們在世界各地的眾多合作夥伴。我們感謝您為我們的成功做出的重大貢獻。最後，感謝我們的股東一直以來的支持。

I now turn the call over for your questions.

我現在轉接電話，詢問你們的問題。

(Operator Instructions) Lorraine Hutchinson, Bank of America.

（操作員指示）Lorraine Hutchinson，美國銀行。

Thank you. Good afternoon. Can you comment on how comfortable you are with the level and content of UO inventory entering the second half? And then separately, can you also walk us through the drivers of the fourth quarter gross margin recovery assumed in guidance?

謝謝。午安.您能否評論一下您對進入下半年的 UO 庫存水準和內容感到滿意嗎？另外，您能否向我們介紹指引中假設的第四季毛利率復甦的驅動因素？

Hi, Lorraine. It's Shea. I can take that. We feel really great. As you heard in the prepared remarks, we're confident that our inventory is clean. Inventory levels are much more aligned with sales. And really, that's the primary driver of the margin recovery.

嗨，洛林。是謝伊。我可以接受。我們感覺真的很棒。正如您在準備好的演講中聽到的那樣，我們相信我們的庫存是乾淨的。庫存水準與銷售更加一致。事實上，這是利潤率恢復的主要驅動力。

And Lorraine, as it relates to our fourth quarter for URBN. It will really be driven by two things, the gross profit margin improvement opportunity. One IMU, which we've got very strong and comfortable confident line of sight to. And second is the significant opportunity in markdown improvement at the Urban Outfitters brand.

還有 Lorraine，因為它與我們 URBN 的第四季度有關。它實際上是由兩件事驅動的，即毛利率改善機會。一個 IMU，我們擁有非常強大且舒適且自信的視線。其次是 Urban Outfitters 品牌降價改善的重大機會。

I think Sheila, Shea, and team have done a great job at aligning their inventory now much closer with sales. And they had significantly higher markdown rates than what we would normally run in the fourth quarter last year, so that there is meaningful opportunity for that brand and to help URBN drive improved markdown rates in the fourth quarter, driving improved gross profit margin in the fourth quarter.

我認為 Sheila、Shea 和團隊在調整庫存和銷售方面做得非常出色。 And they had significantly higher markdown rates than what we would normally run in the fourth quarter last year, so that there is meaningful opportunity for that brand and to help URBN drive improved markdown rates in the fourth quarter, driving improved gross profit margin in the fourth四分之一.

Adrienne Yih, Barclays.

艾德麗安‧易 (Adrienne Yih)，巴克萊銀行。

Great. Thank you very much. My question is around kind of the -- your higher-end consumer and sort of kind of their resistance or price resistance. Can you, either Dick or Frank or Melanie, can you talk about kind of your initial retails across the three brands, where they are relative to 2019? And I guess, like does this -- does the increase in promotionality at Anthro, in particular, does that mean that -- are you sensing that there is any need to readjust kind of initial retail prices? Thank you.

偉大的。非常感謝。我的問題是關於高端消費者以及他們的阻力或價格阻力。 Dick、Frank 或 Melanie，您能否談談這三個品牌的初始零售情況，以及相對於 2019 年的情況？我想，就像這樣——特別是 Anthro 促銷活動的增加是否意味著——你是否覺得有必要重新調整初始零售價格？謝謝。

Okay. Adrienne, I'll start with that, but then ask Tricia to talk about Anthropologie a little bit more specifically, although I'll mention Anthropologie in my answer. When I talk about the consumer, our customer decreasing the AOV, meaning the amount of money they spend per transaction, an awful lot of that is occurring because at both the Anthropologie and Free People brands are now offering them an alternative product to purchase. In the Anthropologie brand, Tricia talked about they only practice in off hours, and that is somewhat less expensive than their other apparel options.

好的。艾德麗安娜，我將從這個開始，然後請特里西亞更具體地談談人類學，儘管我會在回答中提到人類學。當我談論消費者時，我們的客戶降低了 AOV（即他們每筆交易花費的金額），這種情況發生得非常多，因為 Anthropologie 和 Free People 品牌現在都為他們提供了替代產品來購買。在 Anthropologie 品牌中，Tricia 談到他們只在下班時間練習，這比他們的其他服裝選擇便宜一些。

And that customer, the Anthropologie customer, is choosing those lower-priced items, which is driving the overall AUR and AOV down slightly. The same thing is happening in Free People because of FP Movement is doing so well. It's a higher penetration of the total and FP Movement is slightly less expensive than the rest of their apparel. So I think that it's not really a problem, it's just -- it's showing up in the overall comp.

這位 Anthropologie 客戶正在選擇那些價格較低的商品，這導致整體 AUR 和 AOV 略有下降。同樣的事情也發生在 Free People 中，因為 FP 運動做得很好。它在總體中的滲透率較高，而且 FP Movement 的價格比他們的其他服裝略便宜。所以我認為這並不是一個真正的問題，它只是——它出現在整體比較中。

Tricia, do you want to expand on that?

Tricia，你想擴展一下嗎？

Sure. I think when you look at our average unit retail received, Adrienne, from now through -- back through FY19, in total, that AUR is not that much higher, to Dick's point around the additional categories that we've introduced into the mix. So our prices in total in terms of the receipts that we brought in, like low single -- mid-single digits, I would say. Our average unit sales were up tremendously, and that's really come from the return to a full price business. So the mix of our price points in total is not that different, but we will continue to drive a full-price business, which we have been doing for the last several years.

當然。我認為，艾德麗安，當你看到我們從現在到 2019 財年的平均零售量時，AUR 並沒有高出多少，正如迪克所指出的，我們在產品組合中引入了其他類別。因此，我想說，就我們帶來的收入而言，我們的總價格是低個位數——中個位數。我們的平均單位銷售量大幅成長，這實際上是由於回歸全價業務。因此，我們的總價位組合併沒有太大不同，但我們將繼續推動全價業務，這是我們過去幾年一直在做的事情。

Matthew Boss, JPMorgan.

馬修‧博斯，摩根大通。

Great. Thanks. So Dick, could you elaborate a bit just on demand trends that you're seeing in August at Anthro and Free People and also just speak to initial customer response to back-to-school at the Urban Outfitters brand.

偉大的。謝謝。 Dick，您能否詳細說明您在 8 月在 Anthro 和 Free People 看到的點播趨勢，以及談談 Urban Outfitters 品牌的最初客戶對返校的反應。

Okay. I will let Shea talk about Urban Outfitters. Customer demand overall, so at all of our retail brands, deaccelerated slightly in mid-July, and we're seeing that continue into August. The lower demand rate feels like it's a return to pre-COVID levels and away from what I would consider a supercharged demand over the last few years.

好的。我會讓 Shea 談談 Urban Outfitters。總體而言，我們所有零售品牌的客戶需求在 7 月中旬略有放緩，我們預計這種情況將持續到 8 月。較低的需求率感覺像是回到了新冠疫情前的水平，遠離了我認為過去幾年的強勁需求。

Now, our investment in brand marketing over the past few years in three of our retail brands was elevated and is now paying dividends. Those brands grow their customer base considerably. And so now store traffic and online traffic remains strong, and that's driving total transactions. So with customers becoming more selective in their purchases or buying slightly less expensive items, the extra transactions are more than offsetting the slight dip in AOV and driving those positive comps.

現在，過去幾年我們對三個零售品牌的品牌行銷投入有所增加，並且正在帶來紅利。這些品牌的客戶群大幅成長。因此，現在商店流量和線上流量仍然強勁，這推動了總交易量。因此，隨著客戶在購買時變得更加挑剔或購買稍微便宜的商品，額外的交易足以抵消 AOV 的輕微下降並推動這些積極的競爭。

Shea, you want to talk about back to school.

謝伊，你想談談重返校園的事。

Yeah. It's Shea. I would say that we're seeing is not dissimilar to what Dick covered for the overall URBN status. However, I think in some of the areas that we have been able to impact with some of our initial work, we are seeing some positive momentum. So areas like women's accessories and home and even across our denim categories, which is obviously, a very strong category for back-to-school. And that brings us some optimism against our path forward. But I think generally, it's in line with what Dick said.

是的。是謝伊。我想說的是，我們所看到的情況與迪克所報告的 URBN 整體狀況並沒有什麼不同。然而，我認為在我們透過一些初步工作能夠影響的一些領域，我們看到了一些正面的動力。因此，女性配件和家居等領域，甚至整個牛仔布類別，這顯然是返校季的一個非常強大的類別。這讓我們對前進的道路感到樂觀。但我認為總的來說，這與迪克所說的一致。

Paul Lejuez, Citi.

保羅‧勒胡埃斯，花旗銀行。

Hey. Thanks, guys. I know you said that you felt decent about inventory at the Urban Outfitters brand. But I'm curious, Shea, do you think the product and the store aesthetic is where you want it to be to justify kicking up marketing investment at this point? Or is that going to take some time? Just curious when we might see those picked up marketing investments. And then, also curious to get your view on what is the right size of the Urban Outfitters store and the right mix of mall versus off mall? Thanks.

嘿。謝謝，夥計們。我知道您說過您對 Urban Outfitters 品牌的庫存感覺不錯。但我很好奇，謝伊，您認為產品和商店美學是否符合您的預期，足以證明此時加大行銷投資是合理的？或者這需要一些時間？只是好奇我們何時會看到這些行銷投資。然後，我也很想知道您對 Urban Outfitters 商店的合適規模以及商場與商場外的正確組合有何看法？謝謝。

Yeah. Thanks for the question. I hate to hesitate on timing. Having been here for six months, the first step was really to get the right team in place and to build the strategy, which I think we feel really confident about. These things don't happen in a certain sequence or order. From the marketing perspective, we're really trying to learn as much as we can and try different things. The initial step that we have taken that we feel great about is really accelerating our presence and engagement on social media, and we are seeing some initial results there. There's obviously a lot of work to do in terms of bringing more relevant touchpoints to life across our stores, from the experience and, of course, in the product category.

是的。謝謝你的提問。我討厭在時機上猶豫不決。在這裡待了六個月，第一步實際上是組建合適的團隊並製定策略，我認為我們對此非常有信心。這些事情不會以一定的順序或順序發生。從行銷的角度來看，我們確實在盡可能多地學習並嘗試不同的事情。我們所採取的令我們感覺良好的第一步確實是加速了我們在社群媒體上的存在和參與，我們正在那裡看到一些初步成果。顯然，要在我們的商店中引入更多相關的接觸點，包括體驗，當然還有產品類別，還有很多工作要做。

And we have lead times that we're working with. So I hate to comment on specific timing of the store. But what I can comment on is that we feel optimistic about our plan, and we're getting to work. That's really our next step. In terms of store size, yes, we do feel like our average store size is too big, as I said. We think we need to be roughly in the 6,000 square feet to 8,000 square feet. And we're higher than that. And so we have a number of leases that are coming up in the next few years, and we'll be able to take a look at each one to make sure, one, we have the right location; and two, we optimize for the right space and size.

我們有我們正在合作的交貨時間。所以我不想評論商店的具體時間。但我可以評論的是，我們對我們的計劃感到樂觀，我們正在開始工作。這確實是我們的下一步。就商店規模而言，是的，正如我所說，我們確實覺得我們的平均商店規模太大了。我們認為我們需要大約在 6,000 平方英尺到 8,000 平方英尺之間。我們比那更高。因此，我們將在未來幾年內簽訂許多租約，我們將能夠查看每項租約，以確保：第一，我們擁有正確的位置；第二，我們優化合適的空間和尺寸。

Alex Straton, Morgan Stanley.

亞歷克斯‧斯特拉頓，摩根士丹利。

Perfect. I have a couple. One, just related to the Urban Outfitters business. Just with the deleverage you're seeing there on the challenging sales trends. Are there any plans to reduce the fixed cost base? Or would you maybe consider a smaller overall store footprint? Just wondering if that's potentially in the strategy. And then maybe for Frank, just on the higher markdowns you're assuming for the third quarter. Is that across the brands? Or is it concentrated at a specific banner? Thanks a lot.

完美的。我有一對。一，與 Urban Outfitters 業務相關。就你在充滿挑戰的銷售趨勢中看到的去槓桿化而言。是否有計劃減少固定成本基礎？或者您會考慮較小的整體商店佔地面積嗎？只是想知道這是否可能包含在戰略中。然後，也許對弗蘭克來說，只是你假設第三季的降價幅度更高。是跨品牌的嗎？或者它集中在特定的橫幅上？多謝。

I can take the higher markdowns first. So right now, I think we put in the plan based on the slight slowdown that we've seen, higher markdowns across all brands because we have seen a slight slowdown across all brands. What I would say right now is we're hoping that that's a conservative plan. Things are definitely very choppy right now. And we're hoping the guidance or the plan for a 100-basis point decline on a year-over-year basis is a conservative plan. But it is across all three brands in order to keep inventory where we need it to be coming into holiday.

我可以先接受更高的降價。因此，現在，我認為我們制定該計劃是基於我們所看到的輕微放緩，所有品牌的降價幅度更高，因為我們看到所有品牌都略有放緩。我現在想說的是，我們希望這是一個保守的計劃。現在的情況肯定非常不穩定。我們希望同比下降 100 個基點的指導或計劃是一個保守的計劃。但它適用於所有三個品牌，以便將庫存保留在我們需要的地方，以便進入假期。

Alex, this is Dick talking. As Shea said, over the next three years, over 50% of the Urban stores in North America will be up for renewal. Our decision to renew will renew, relocate, downsize, or close will be made on a case-by-case basis based on the economics. Over the last seven years, most of the stores we've opened are currently four-wall profitable. Now, those stores tend to be smaller than our average and tend to be in locations outside of the large, large major cities. So that sort of gives you a hint of how we're thinking about it. But again, it will depend on the economics of each store on a case-by-case basis.

亞歷克斯，這是迪克在說話。正如Shea所說，未來三年，北美地區超過50%的Urban門市將進行更新。我們將根據經濟情況根據具體情況做出續約、搬遷、縮小規模或關閉的決定。在過去的七年裡，我們開設的大多數商店目前都是四面牆營的。現在，這些商店往往比我們的平均規模要小，而且往往位於大城市以外的地方。這可以讓你了解我們是如何思考這個問題的。但同樣，這將取決於每個商店的具體情況的經濟效益。

Mark Altschwager, Baird.

馬克·阿爾茨瓦格，貝爾德。

Good afternoon. Thanks for taking my question. Just another one UO. I appreciate all the detail here on the plan. I mean, it does sound like a major repositioning and these things take time. So just how should we think about kind of short, medium-term sales and margin guidepost as you execute on these changes? And I mean, is your expectation that the brand can return to sales growth in fiscal '26, or just any more detail on how you're thinking about that path would be great. Thank you.

午安.感謝您提出我的問題。只是另一個UO。我很欣賞計劃中的所有細節。我的意思是，這聽起來確實像是一次重大的重新定位，而這些事情需要時間。那麼，當您執行這些變更時，我們應該如何考慮短期、中期銷售和利潤指南？我的意思是，您是否期望該品牌能夠在 26 財年恢復銷售成長，或者只是提供有關您如何考慮這條道路的更多詳細資訊。謝謝。

Before I ask Shea to answer that, I will say that we're not going to put time limits or projections on any of this. Our idea is to get working, get things moving in the right direction and then let that take care of itself. Shea, do you want to say anything else about it?

在我請謝伊回答這個問題之前，我要說的是，我們不會對任何事情設定時間限製或預測。我們的想法是開始工作，讓事情朝著正確的方向發展，然後讓它自然發展。謝伊，你還有什麼想說的嗎？

(inaudible).

（聽不清楚）。

Okay.

好的。

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

Hi. Good afternoon, everyone. As you think about the inventory levels given the current sales softening, Melanie and Frank, how do you think about what should the right inventory level rate be as we look to the third and the fourth quarter? And then with both the Anthro business and the Urban business, with the Anthro business the customer coming down in age and obviously adjusting the Urban business, how do you think of the marketing spend on each business and where it should be? And is your own brand versus third-party brands, is that shifting for each business, too, and what the margin profile would look like? Thank you.

你好。大家下午好。當您考慮當前銷售疲軟的庫存水平時，梅蘭妮和弗蘭克，當我們展望第三季度和第四季度時，您如何看待正確的庫存水平率應該是多少？然後，對於 Anthro 業務和 Urban 業務，隨著 Anthro 業務的客戶年齡下降，並且明顯調整 Urban 業務，您如何看待每個業務的營銷支出以及它應該在哪裡？您自己的品牌與第三方品牌相比，每個業務是否也會發生變化，利潤狀況會是什麼樣子？謝謝。

That's a lot. Melanie, do you want to start? Go ahead.

就這麼多了。梅蘭妮，你想開始嗎？前進。

Okay. Starting with inventory. Thank you for your question, Dana. So we feel good about the inventories exiting Q2 by segment. Our inventory is below sales growth with retail segment comp inventory down 1% on comp sales growth of 2%. And similarly on wholesale, our inventory levels are up to 3% on sales growth to 15%.

好的。從庫存開始。謝謝你的提問，達納。因此，我們對第二季按細分市場退出的庫存感到滿意。我們的庫存低於銷售成長，零售部門庫存下降 1%，而銷售成長 2%。同樣，在批發方面，隨著銷售額增長至 15%，我們的庫存水準高達 3%。

Now, looking forward, we are planning Q4 more conservatively. But in Q3, our receipt plans were based on the trends of earlier in Q2. So given the recent trend deceleration, we may have to add incremental promotions and markdown. And our gross margin guidance, which I provided earlier, reflects that in the 100 points reduction in gross margin. So for fourth quarter, we have lowered our buy plans in order to account for the slight current slowdown. And we're planning inventory more conservatively for the fourth quarter, obviously, targeting inventory below sales growth in the fourth quarter.

現在，展望未來，我們正在更加保守地規劃第四季。但在第三季度，我們的收貨計劃是基於第二季度早些時候的趨勢。因此，考慮到最近的趨勢減速，我們可能不得不增加增量促銷和降價。我之前提供的毛利率指引反映了毛利率下降 100 個百分點。因此，在第四季度，我們降低了購買計劃，以應對當前略有放緩的情況。顯然，我們對第四季的庫存計劃更加保守，目標是第四季的庫存低於銷售成長。

Tricia, do you want to talk about Anthropologie's marketing?

Tricia，你想談談 Anthropologie 的行銷嗎？

Yes. Dana, I think when we talk about acquiring new customers at Anthropologie and attracting a new younger customer, we tend to think of really attracting a millennial aged customers. So we think of the target customer under the age of 40 and then obviously look at the balance of our retained customers. And both of those are growing nicely. When we're aging down, it really is coming from that under 40 segment targeted a little bit differently than we've historically targeted our existing customer to anthropology, responding very well to some of the strategies that we've implemented on targeting them where they are. And so while the total growth of customers over under 40 is outpacing that of those over 40, we're excited that we're still retaining all of our customer segments and feel like we're thoughtfully looking at attracting a younger customer for Anthropologie.

是的。達納，我認為當我們談論在 Anthropologie 獲取新客戶並吸引新的年輕客戶時，我們傾向於考慮真正吸引千禧世代的老年客戶。所以我們會考慮40歲以下的目標客戶，然後顯然會考慮我們留存客戶的餘額。兩者都發展得很好。當我們變老時，它確實來自於40 歲以下的細分市場，其目標與我們歷史上以人類學為目標的現有客戶略有不同，這對我們針對他們實施的一些策略做出了很好的回應他們是。因此，雖然 40 歲以下客戶的整體成長速度超過了 40 歲以上客戶的成長速度，但我們很高興我們仍然保留了所有客戶群，並且感覺我們正在深思熟慮地考慮為 Anthropologie 吸引年輕客戶。

Dana, just to let you and the rest of the folks on the line know. When you talk about the younger customers, it is true that we are attracting a younger customer for Anthropologie. But the overall average age of the customer at Anthropologie is only down a few years from what it was two years ago. So it hasn't changed anywhere near as precipitously as some people might think.

達納（Dana），只是為了讓您和其他線上人員知道。當你談論年輕顧客時，我們確實為 Anthropologie 吸引了年輕顧客。但 Anthropologie 顧客的整體平均年齡僅比兩年前下降了幾年。因此，它並沒有像某些人想像的那樣發生急劇變化。

Marni Shapiro, The Retail Tracker.

Marni Shapiro，零售追蹤者。

Hey, guys. Thanks so much for taking my question. I have one just quick follow-up on the slowdown you're seeing. I'm curious if you're seeing any regional differences. And if you're seeing -- we're seeing a trend out there, we're actually physically seeing it, but we're hearing about a trend about people are just buying closer to need. And so the lulls between the seasons are -- they're bigger lulls and then they wait to buy whether it's for holiday or back-to-school. So I'm curious if you're seeing those trends. And then I just have one follow-up on Free People after that, if you don't mind.

嘿，夥計們。非常感謝您提出我的問題。我對您所看到的經濟放緩情況進行了快速跟進。我很好奇你是否發現任何地區差異。如果你看到——我們看到了一種趨勢，我們實際上親眼看到了它，但我們聽到了一種趨勢，人們只是在更接近需要的地方購買。因此，季節之間的間歇期是——它們是更大的間歇期，然後他們等待購買，無論是假期還是返校。所以我很好奇你是否看到了這些趨勢。如果你不介意的話，在那之後我只會對《自由人》進行後續報道。

Don't mind. I guess, Marni, I would say that we haven't seen a lot of differences by region or geography. So certainly, one of the first things that we checked hoping that we can see something that might get us in some direction. I had not really considered what you just said, which is more time in between seasons. I do think oftentimes, as you know, because you were in the business a number of years, when you have a very, very hot summer early, like we did on the East Coast at least, oftentimes later in the summer, people get a little bored with summer, may I say, and are anxious for fall to come.

別介意。我想，Marni，我會說我們沒有看到地區或地理上的太多差異。當然，這是我們首先檢查的事情之一，希望我們能看到一些可能引導我們走向某個方向的東西。我並沒有真正考慮過你剛才所說的，即季節之間有更多的時間。我確實經常認為，正如你所知，因為你在這個行業工作了很多年，當你提前度過一個非常非常炎熱的夏天時，至少就像我們在東海岸所做的那樣，通常在夏天晚些時候，人們會得到一個我可以說，對夏天有點厭倦，並且渴望秋天的到來。

So I don't know if that has any impact at all, but that's just another idea. But we don't really have any definitive reason to believe other than a potentially slightly strapped consumer -- or I don't want to say strapped. Overextended consumer, why the consumer might be slowing down.

所以我不知道這是否有任何影響，但這只是另一個想法。但除了可能有點拮据的消費者之外，我們確實沒有任何明確的理由相信——或者我不想說是拮据。消費者過度擴張，為什麼消費者可能放慢腳步。

Yes. To me, it's -- when the consumer is being careful, they wait to buy something to maybe a couple of extra weeks to see what else is out there before they commit. I think tighter while it makes them a little bit of commitment phobic. But could I just ask you one question?

是的。對我來說，當消費者小心翼翼時，他們會等待可能額外幾週的時間來購買某樣東西，看看外面還有什麼，然後再做出決定。我認為更嚴格，但這讓他們有點害怕承諾。但我可以問你一個問題嗎？

Also before you go to the Free People question, it would also be -- I might wait a couple of weeks to see if there are any more promotions.

另外，在您討論「自由人」問題之前，我可能會等待幾週，看看是否還有更多促銷活動。

Yeah, exactly. With the success of Free People on Free People movement, are you seeing the success also in Europe? And is Free People movement in Europe? And what are plans to either bring it there or open more Free People stores there?

是的，完全正確。隨著「自由人民」運動的成功，您是否也看到歐洲也成功了？歐洲有自由人民運動嗎？將其帶到那裡或在那裡開設更多 Free People 商店的計劃是什麼？

Okay. I can answer that. Actually, our Free People European business, which includes the UK, France, and Netherlands currently, is actually outpacing in Q2 our North America business substantially. And going into Q3, the acceleration has picked up tremendously. So I think this last year has been about focusing on creating profitability in our stores, which we have; gaining a new customer, which we see -- we very much have. So you will see more European stores for Free People. We do you have a long-term plan to grow FP Movement as well in Europe, but Free People is the priority of growth in the next couple of years.

好的。我可以回答這個問題。事實上，我們的 Free People 歐洲業務（目前包括英國、法國和荷蘭）實際上在第二季大幅超過了我們的北美業務。進入第三季度，增速大幅加快。因此，我認為去年的重點是為我們擁有的商店創造獲利能力；贏得了新客戶，我們看到了——我們非常有。所以你會看到更多 Free People 的歐洲商店。我們確實有一個在歐洲發展 FP Movement 的長期計劃，但 Free People 是未來幾年發展的首要任務。

And Marni, if I could. I'm going to ask Tricia to talk about Anthropologie in Europe because it's doing quite well also.

還有瑪尼，如果可以的話。我要請特里西亞談談歐洲的人類學，因為它也做得很好。

Yes. Thank you, Marni. Our Anthropologie EU business, I would say, for the last three consecutive quarters, has seen a tremendous improvement. And really, I think that's come from the alignment of our strategic priorities are really global strategic priorities. And as we've accelerated and grown the women's business in North America, that's followed suit with our business in the EU. So no specific plans yet to expand our retail footprint in Europe, but we're feeling really good about the growth of the business and the profit levels that we've reached in that business and feel confident that we'll continue to see that.

是的。謝謝你，瑪尼。我想說，我們的 Anthropologie EU 業務在過去連續三個季度取得了巨大的進步。事實上，我認為這是由於我們的戰略重點與全球戰略重點的一致性。隨著我們在北美加速和發展女性業務，我們在歐盟的業務也隨之跟進。因此，目前還沒有擴大我們在歐洲零售業務的具體計劃，但我們對業務的成長和我們在該業務中達到的利潤水平感到非常滿意，並且對我們將繼續看到這一點充滿信心。

Janet Kloppenburg, JJK Research.

珍妮特·克洛彭堡，JJK 研究。

Hi, everybody. Just a couple of quick questions. Shea, at Urban Outfitters, I know you've been doing a lot of research on your customer, et cetera. And I'm wondering what your pricing research is indicating and in what direction that will take your pricing as we go forward?

大家好。只是幾個簡單的問題。 Shea，Urban Outfitters，我知道您對客戶進行了大量研究，等等。我想知道你們的定價研究顯示了什麼，以及我們今後的定價將朝什麼方向發展？

And for Melanie, should we expect inventories to be aligned with sales trends by the end of the third quarter? And just lastly, for Dick. As AOB and spending might be slowing and with a more cautious consumer, how does that make you feel about your marketing spend for the total company? And would you consider going back to levels that were closer to 2019?

對於梅蘭妮來說，我們是否應該預期到第三季末庫存將與銷售趨勢保持一致？最後，對迪克來說。由於 AOB 和支出可能會放緩，並且消費者更加謹慎，這讓您對整個公司的行銷支出有何看法？您會考慮回到接近 2019 年的水平嗎？

I'll start, Janet, because I have a very quick answer for you. The answer is yes because, guess what, we were just discussing this. So it's something that we haven't agreed on totally yet, but I do think that that's an element that is out there that is open for discussion.

我先開始吧，珍妮特，因為我有一個非常快速的答案給你。答案是肯定的，因為你猜怎麼著，我們剛剛討論過這個問題。因此，我們尚未完全就這一點達成一致，但我確實認為這是一個可供討論的要素。

I can jump in, Janet. It's Shea. Yes, we've done a lot of research, and we heard very clearly that customers perceive us as expensive, so they believe that our prices are higher than they need to be. We are attacking that full force, and we've made the commitment to offer the best price value for every item we sell. And that also includes expanding our range of accessible or opening price points. So we're tackling that pretty quickly.

我可以加入，珍妮特。是謝伊。是的，我們做了很多研究，我們清楚地聽到客戶認為我們很昂貴，因此他們認為我們的價格高於他們需要的價格。我們正在全力以赴，並且我們承諾為我們銷售的每件商品提供最佳的價格價值。這也包括擴大我們的可訪問或開放價格點的範圍。所以我們很快就解決了這個問題。

I would also say that price is a very dynamic subject. It changes rapidly. And ultimately, our goal is to really price things right across the market and be as competitive as possible.

我還想說，價格是一個非常動態的主題。它變化很快。最終，我們的目標是在整個市場上真正定價並盡可能具有競爭力。

Mel, do you --

梅爾，你——

Sure. On to the second part of your question, Janet. Yes, we are targeting Q3 inventory levels to be in line with sales trend.

當然。關於你問題的第二部分，珍妮特。是的，我們的目標是第三季庫存水準與銷售趨勢保持一致。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Hey, everyone. Thanks for squeezing me in. Just maybe, Frank or Melanie. Just on the gross margin, I'm trying to make sure I understand the trajectory. You guys -- you've been very clear about you overbought based on the sales trend, and there's some -- obviously, there's some extra markdowns in the third quarter, gross margin is down 100. But to maintain the year, at least on my math, that implies gross margins are going to inflect pretty meaningfully back positive, up around 100 basis points by 4Q.

嘿，大家。謝謝你把我擠進去。就毛利率而言，我試圖確保我了解其軌跡。你們--根據銷售趨勢，你們已經非常清楚地知道自己超買了，而且有一些--顯然，第三季度有一些額外的降價，毛利率下降了100。我的計算，這意味著毛利率將大幅回升，到第四季將上升約100 個基點。

I guess I'm just trying to make sure I understand, is there a onetime reversal that happened in 4Q last year? Or are you expecting to be back to clean and growing again by 4Q? I'm just not sure I understand the quick inflection, you guys. That looks like it's baked into the plan.

我想我只是想確保我明白，去年第四季是否發生過一次性逆轉？或者您預計到第四季度將恢復清潔並再次增長？我只是不確定我是否理解這種快速的變化，你們。看起來它已經被納入計劃中了。

Ike, I just want to -- before Frank answers the question specifically, I just want to clarify for everyone, we did not overbuy. We bought to a trend that was in existence when we had to order the product. And that trend changed fairly abruptly at the very end of the season. And that's why we now are caught with a little bit of extra inventory. Frank?

艾克，我只是想──在法蘭克具體回答這個問題之前，我想先向大家澄清一下，我們並沒有過度購買。我們購買了當我們必須訂購產品時存在的趨勢。這種趨勢在賽季結束時突然發生了變化。這就是為什麼我們現在有一點額外的庫存。坦率？

Yes. And so obviously, we grew gross profit margin in Q1 and in Q2, both times beating our plan. You are correct, we are committed to the 50 basis points to 100 basis points improvement for the full year which would imply over 100 basis point opportunity in the fourth quarter. It is not due to a onetime reversal. It is due to the Urban Outfitters brand opportunity to significantly improve their markdown rate now that their inventory is much more in line with sales and will continue to be so, managing that business on a tighter weeks of supply, and just much, much more efficiently than where we were heading into the fourth quarter last year.

是的。顯然，我們在第一季和第二季的毛利率都有所增長，兩次都超出了我們的計劃。你是對的，我們致力於全年實現 50 到 100 個基點的改善，這意味著第四季度有超過 100 個基點的機會。這並不是由於一次性逆轉。這是由於 Urban Outfitters 品牌有機會顯著提高降價率，因為他們的庫存與銷售更加一致，並將繼續如此，在供應緊張的情況下管理該業務，並且效率更高比我們去年第四季度的情況要好。

But you are correct that, that will -- that would imply, and that's what we are planning for is greater than 100 basis points improvement in the fourth quarter, hitting that still full year plan of 50 basis points to 100 basis points of gross profit margin improvement. Thank you.

但你是對的，這將意味著，這就是我們計劃在第四季度實現超過 100 個基點的改善，實現毛利 50 個基點到 100 個基點的全年計劃利潤率改善。謝謝。

Okay. I think that that does it. Thank you very much for joining us, and we hope to see you back in a few months.

好的。我認為這樣就可以了。非常感謝您加入我們，我們希望幾個月後再次見到您。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。