Urban Outfitters Inc (URBN) 2025 Q3 法說會逐字稿

Good day, and welcome to the Urban Outfitters Inc., third quarter fiscal 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，歡迎參加 Urban Outfitters Inc. 2025 財年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker, Ms. Oona McCullough, Executive Director of Investor Relations. Please go ahead.

現在我想將會議交給您的發言人，投資者關係執行董事 Oona McCullough 女士。請繼續。

Good afternoon, and welcome to the URBN third quarter fiscal 2025 conference call. Earlier this afternoon, the company issued a press release outlining the financial and operating results for the three- and nine-month period ending October 31, 2024. The following discussions may include forward-looking statements.

下午好，歡迎參加 URBN 2025 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 2024 年 10 月 31 日的三個月和九個月期間的財務和經營業績。

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. For more detailed commentary on our quarterly performance in the text of today's conference call, please refer to our Investor Relations website at www.urbn.com. I will now turn the call over to Dick.

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。有關今天電話會議文本中對我們季度業績的更詳細評論，請參閱我們的投資者關係網站 www.urbn.com。我現在將把電話轉給迪克。

Thank you, Oona, and good afternoon, everyone. We're pleased to announce record third-quarter sales and profits, surpassing the expectations we discussed in August. Speaking of those results on today's call, you will first hear from Frank Conforti, our Co-President and COO. After Frank, you will hear updates on two of our newest and fastest-growing brands. Dave Hayne will speak about Nuuly, our fashion apparel rental business, followed by Sheila Harrington, who will talk about our athletic brand, FP Movement.

謝謝你，烏娜，大家下午好。我們很高興地宣布第三季銷售額和利潤創歷史新高，超出了我們八月份討論的預期。在今天的電話會議上談到這些結果時，您將首先聽到我們的聯合總裁兼營運長 Frank Conforti 的演講。在弗蘭克之後，您將聽到我們兩個最新且成長最快的品牌的最新消息。 Dave Hayne 將談論我們的時尚服裝租賃業務 Nuuly，隨後 Sheila Harrington 將談論我們的運動品牌 FP Movement。

Following those updates, Melanie Marein-Efron, URBN's CFO, will talk about our current expectations for the fourth quarter. Then, after my brief closing remarks, we will be pleased to address your questions.

在這些更新之後，URBN 財務長 Melanie Marein-Efron 將談論我們目前對第四季度的預期。然後，在我簡短的結束語之後，我們將很高興回答您的問題。

I will now turn the call over to Frank.

我現在將把電話轉給弗蘭克。

Thank you, Dick, and good afternoon, everyone. Today, I will discuss our total company third-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.

謝謝迪克，大家下午好。今天，我將討論我們公司第三季的整體業績與前一年相比，然後按品牌列出一些更詳細的註釋。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 second-quarter call. Total URBN sales grew by 6% to a Q3 record of $1.4 billion, and four of our five brands continued to perform remarkably well, posting record third-quarter sales. Our sales growth was driven in part by a retail segment comp of 2%. Anthropologie and Free People produced a mid-single-digit positive retail segment comp, which more than offset a high single-digit retail segment comp decline at Urban Outfitters.

總的來說，這些團隊交付了一個出色的季度，這遠遠超出了我們在第二季度電話會議上討論的計劃。 URBN 總銷售額成長 6%，達到第三季創紀錄的 14 億美元，我們的五個品牌中有四個繼續表現出色，第三季銷售額創下歷史新高。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 的零售部門業績實現了中個位數的正成長，足以抵消 Urban Outfitters 零售部門的高個位數下滑。

Nuuly delivered robust double-digit revenue growth due to a 51% increase in average active subscribers versus the prior year. Additionally, the wholesale segment increased revenue by 17%, driven by a healthy increase in the full-price sales at Free People.

Nuuly 的營收實現了強勁的兩位數成長，原因是平均活躍用戶較上年成長了 51%。此外，在 Free People 的全額銷售健康成長的推動下，批發部門的收入成長了 17%。

Now moving on to gross profit. URBN's gross profit dollars increased by 9% to $497 million, while the gross profit rate improved by 105 basis points to 36.5%. This improvement was due to improved gross margins for all segments, primarily driven by higher initial merchandise margins, followed by reduced merchandise markdowns. Both Anthropologie and Free People saw increases in initial margins, while Urban Outfitters drove the improvement in merchandise markdowns.

現在轉向毛利。 URBN 的毛利成長了 9%，達到 4.97 億美元，毛利率提高了 105 個基點，達到 36.5%。這項改善是由於所有部門的毛利率均有所提高，這主要是由於初始商品利潤率上升以及隨後的商品降價減少所致。 Anthropologie 和 Free People 的初始利潤均有所增加，而 Urban Outfitters 則推動了商品降價的改善。

During our last call, we noted the retail segment brands were experiencing a slight slowdown in sales trends and anticipated the need for more promotions compared to the previous year. The good news is, trends improved as the quarter progressed, which resulted in Urban Outfitters delivering lower year-over-year merchandise markdowns, Anthropologie merchandise markdowns remaining flat to last year, and Free People recording slightly higher merchandise markdowns versus last year.

在上次電話會議中，我們注意到零售領域品牌的銷售趨勢略有放緩，並預計與去年相比需要更多促銷活動。好消息是，隨著本季的進展，趨勢有所改善，這導致 Urban Outfitters 的商品降價同比下降，Anthropologie 的商品降價與去年持平，Free People 的商品降價略高於去年。

It is important to note that while Free People did record higher merchandise markdowns in the current quarter, their prior year rate was exceptionally low, and the Free People brand continues to lead the way with the lowest markdown rate of any of our retail segment brands. Additionally, both the subscription and wholesale segments reported strong gross margin gains.

值得注意的是，雖然 Free People 在本季度確實錄得了較高的商品降價，但上一年的降價率卻異常低，並且 Free People 品牌繼續以我們所有零售領域品牌中降價率最低的方式領先。此外，訂閱和批發業務的毛利率均有強勁成長。

Next for the quarter, SG&A increased by 7%, just slightly outpacing our rate of sales growth. The rise in total company SG&A expenses was primarily due to increased marketing spend used to drive solid sales growth at the Anthropologie, Free People, FT Movement, and Nuuly brands. The marketing efforts of Anthropologie and Free People significantly boosted traffic to both the store and digital channels, while Nuuly's campaign led to over 50% growth in average active subscribers.

接下來的季度，SG&A 成長了 7%，僅略高於我們的銷售成長率。公司銷售、管理及行政費用總額的成長主要是因為用於推動 Anthropologie、Free People、FT Movement 和 Nuuly 品牌銷售穩健成長的行銷支出增加。 Anthropologie 和 Free People 的行銷工作顯著增加了商店和數位管道的流量，而 Nuuly 的活動使平均活躍訂閱者增加了 50% 以上。

Total URBN operating income rose by 18% compared to last year, reaching $129 million, with the operating profit rate improving by over 90 basis points to 9.4%. Net income saw a 24% increase to $103 million, or $1.10 per diluted share.

URBN總營業收入較去年成長18%，達到1.29億美元，營業利益率提高90多個基點至9.4%。淨利潤成長 24%，達到 1.03 億美元，即稀釋後每股收益 1.10 美元。

I will now provide more details by brand, starting with Anthropologie. The Anthropologie team delivered another excellent quarter, with a 6% retail segment comp and their eight straight quarter of double-digit operating income growth.

我現在將按品牌提供更多詳細信息，從 Anthropologie 開始。 Anthropologie 團隊又交付了一個出色的季度業績，零售部門的業績成長了 6%，並連續八個季度實現兩位數的營業收入成長。

Positive comps were driven by similar growth in both the store and digital channels. By category, Apparel, Shoes, Accessories, and Beauty delivered nicely positive retail segment comps in the quarter. Within Apparel, there is broad-based strength across categories and the holiday assortment has been well received by consumers.

商店和數位通路的類似成長推動了積極的業績成長。按類別劃分，服裝、鞋履、配件和美容品在本季的零售細分市場中表現良好。在服裝領域，各品類都具有廣泛的實力，節慶品種深受消費者歡迎。

Strength in these categories was partially offset by a weakness in Home, which was entirely driven by lower furniture sales. Within Home, the Gift and Entertainment category is nicely positive driven by consumers investing in seasonal decorative categories to refresh their homes for the holiday. The Anthropologie team continues to execute exceptionally well on their strategic initiative of acquiring new customers, while further engaging existing customers.

這些類別的強勢被家居品類的疲軟部分抵消，而家居品類的疲軟完全是由家具銷售下降造成的。在家居領域，禮品和娛樂類別受到消費者投資季節性裝飾品類以在節日期間煥然一新家居的積極推動。 Anthropologie 團隊持續出色地執行其獲取新客戶的策略性舉措，同時進一步吸引現有客戶。

During the quarter, both new and active customers increased by over 13% versus the prior year. The brand continues to make strategic marketing investments supported by outstanding creative content, which drove high single-digit traffic increases in both the store and digital channel. Impressive sales growth and healthy margin expansion, coupled with well-managed expenses, drove record operating profit dollars for the brand in the third quarter.

本季新客戶和活躍客戶均較上年同期成長 13% 以上。該品牌繼續在出色的創意內容的支持下進行策略行銷投資，這推動了商店和數位管道的高個位數流量成長。令人印象深刻的銷售成長和健康的利潤率擴張，加上管理良好的費用，推動該品牌第三季的營業利潤創歷史新高。

As we enter the holiday season, the Anthropologie consumer remains optimistic and continues to respond positively to a broad range of categories. Based on our current plans, we believe the brand could deliver a positive comp in the fourth quarter, similar to the third quarter.

隨著節日季節的到來，Anthropologie 消費者仍然保持樂觀態度，並繼續對各種類別做出積極反應。根據我們目前的計劃，我們相信該品牌可以在第四季度實現與第三季類似的積極業績。

Next, the Free People team produced an outstanding quarter with the global Free People group, including wholesale, total sales increasing 10%. The double-digit increase in sales was driven by a 5% retail segment comp, 20% increase in wholesale segment revenues, and a 176% increase in non-comp sales driven by new store openings. The sales comp was driven by a mid-single-digit DTC comp and a low-single-digit store comp.

接下來，Free People團隊與全球Free People集團一起創造了一個出色的季度，包括批發在內，總銷售額成長了10%。銷售額兩位數的成長是由 5% 的零售部門收入成長、20% 的批發部門收入成長以及 176% 的新店開業推動的非公司銷售額成長所推動的。銷售比較是由中個位數的 DTC 比較和低個位數的商店比較推動的。

During the quarter, the Free People brand achieved positive sales growth across apparel, accessories, and FP movement. The FP movement brand delivered 30% total growth, driven by 14% retail segment comp, new store growth, and over 70% wholesale segment growth. Sheila will speak further to FP movement later on the call.

本季度，Free People 品牌在服裝、配件和 FP 運動領域實現了銷售正成長。 FP 運動品牌實現了 30% 的總成長，這主要得益於 14% 的零售部門比較、新店成長以及超過 70% 的批發部門成長。希拉稍後將在電話會議上進一步談論 FP 運動。

Based on our current plans, we believe Free People retail segment could deliver a low- to mid-single-digit positive comp for the fourth quarter. The Free People wholesale segment sales increased 20% 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.

根據我們目前的計劃，我們相信 Free People 零售部門可能會在第四季度實現低至中個位數的正收益。在百貨公司和專賣店全價銷售成長的推動下，Free People 批發部門的銷售額在本季成長了 20%，但部分被清倉通路銷售的有意下降所抵銷。

Segment profitability improved significantly from the prior year when the brand utilized closeout channel sales to reduce aging product. We believe the wholesale segment could continue to deliver double-digit sales growth and improve profitability versus last year in the fourth quarter.

當品牌利用清倉通路銷售來減少老化產品時，該部門的獲利能力較上年大幅提高。我們相信第四季批發業務將繼續實現兩位數的銷售成長，並提高獲利能力。

Now moving on to the Urban Outfitters brand. Urban Outfitters recorded a 9% decline in the retail segment comp for the quarter. This negative comp was primarily due to the disappointing performance in North America, while Europe delivered a low-single-digit positive comp. Despite the overall decline in North American sales, we are pleased with the improvement in merchandise margin rate, driven by lower markdowns in the quarter, resulting in a reduction in the brand's operating loss versus last year.

現在轉向 Urban Outfitters 品牌。 Urban Outfitters 本季零售部門的業績下降了 9%。這種負面的業績主要是由於北美地區的表現令人失望，而歐洲的正業績則為低個位數。儘管北美銷售額整體下降，但我們對商品利潤率的改善感到滿意，這得益於本季降價幅度降低，導致該品牌的營運虧損較去年有所減少。

The brand delivered improving regular price performance in key categories, such as denim, accessories, home, and certain key lounge items during the third quarter. These key categories and items are becoming increasingly important as we approach the holiday season.

第三季度，該品牌在牛仔布、配件、家居和某些主要休閒用品等關鍵類別上的常規價格表現有所改善。隨著假期的臨近，這些關鍵類別和商品變得越來越重要。

Additionally, the brand showed nice improvements in store comps as the quarter progressed, driven by improving regular price sales, with October being the strongest month of the quarter. We have full confidence in the brand team and the strategies they are implementing. While we acknowledge that progress may be gradual, we believe their efforts will yield meaningful results over time.

此外，在正常價格銷售改善的推動下，隨著本季的進展，該品牌的商店業績也出現了良好的改善，其中 10 月是該季度最強勁的月份。我們對品牌團隊以及他們正在實施的策略充滿信心。雖然我們承認進展可能是漸進的，但我們相信隨著時間的推移，他們的努力將產生有意義的成果。

Based on our current plans, we believe the brand could deliver a mid-single-digit comp decline in the fourth quarter. Before turning the call over to Dave to discuss the strength of the Nuuly business, I would like to briefly address the macro environment and consumer trends. When we last spoke in August, we were experiencing softer demand trends and approached the third quarter with caution.

根據我們目前的計劃，我們相信該品牌第四季的營收可能會出現中個位數的下滑。在將電話轉給 Dave 討論 Nuuly 業務的實力之前，我想先簡單介紹一下宏觀環境和消費者趨勢。當我們上次在八月發表演說時，我們正經歷著需求趨勢的疲軟，並謹慎對待第三季。

However, as the quarter progressed, we observed a return to healthy consumer spending patterns, with October delivering the strongest comp of the quarter. Although it is still early in the holiday season, with a big shift in the holiday calendar, based on our current results, we are optimistic for the entire holiday season. We anticipate that total sales growth in the fourth quarter will mirror that of the third quarter, driven by a single-digit increase in retail segment comps, strong revenue growth from Nuuly, and continued double-digit sales growth in the wholesale segment.

然而，隨著本季的進展，我們觀察到消費者支出模式回歸健康，十月份的業績表現是本季最強勁的。儘管現在還處於假期初期，假期日曆有較大變化，但根據我們目前的業績，我們對整個假期持樂觀態度。我們預計，第四季度的總銷售額成長將與第三季持平，這是由零售部門的個位數成長、Nuuly 的強勁收入成長以及批發部門的持續兩位數銷售額成長所推動的。

I will now turn the call over to Dave Hayne, President of Nuuly and Chief Technology Officer, to provide details on the Nuuly brand third quarter performance, as well as a strategic update.

我現在將把電話轉給 Nuuly 總裁兼技術長 Dave Hayne，提供有關 Nuuly 品牌第三季業績的詳細資訊以及策略更新。

Thank you, Frank, and good afternoon, everyone. I'm pleased to share an update on our rental business, Nuuly. On this same call last year, we celebrated surpassing 200,000 active subscribers and achieving our first quarterly operating profit. Since then, our active subscriber base has grown 50%, ending this third quarter at 297,000. And in the last few weeks in November, we have crested over 300,000.

謝謝弗蘭克，大家下午好。我很高興與您分享我們租賃業務 Nuuly 的最新動態。在去年的同一個電話會議上，我們慶祝了活躍訂閱者數量超過 20 萬名，並實現了我們的第一個季度營業利潤。自那時起，我們的活躍用戶群成長了 50%，截至第三季達到 297,000 人。在 11 月的最後幾週，人數已突破 30 萬人。

The third quarter was particularly exciting, with a net increase of 52,000 active subscribers, or 21% total growth in just three months, and with quarterly records for new subscribers, as well as records for attracting paused and canceled customers back into the business.

第三季尤其令人興奮，活躍用戶淨增 52,000 名，短短三個月內總增長 21%，季度新用戶數量創歷史新高，吸引暫停和取消的客戶重返業務也創下新紀錄。

The strong third quarter subscriber growth translated directly into robust financial results. Nuuly delivered $97 million in third quarter revenue, a 48% increase versus last year. We have continued to improve gross margins and operating efficiency, resulting in a nicely profitable quarter with $4 million in operating income at a 4.2% operating margin rate.

第三季用戶的強勁成長直接轉化為強勁的財務表現。 Nuuly 第三季營收為 9,700 萬美元，比去年成長 48%。我們不斷提高毛利率和營運效率，實現了盈利良好的季度，營業收入為 400 萬美元，營業利潤率為 4.2%。

This marks our second consecutive quarter with a mid-single-digit operating profit rate, and we believe this trend will continue into the fourth quarter, which should lead to Nuuly's first full year of positive operating profit. Over the past several quarters, our team has been focused on three primary pillars, advancing the customer experience, scaling our operations to support our robust growth, and driving customer awareness.

這標誌著我們連續第二個季度實現中個位數營業利潤，我們相信這一趨勢將持續到第四季度，這應該會導致 Nuuly 首次全年實現正營業利潤。在過去的幾個季度中，我們的團隊一直專注於三個主要支柱：提升客戶體驗、擴大營運規模以支持我們的強勁成長以及提高客戶意識。

First, the customer experience. We know that the main reason women choose Nuuly is for our breadth of brands and fashion assortment, and at the heart of the assortment are styles from our family of brands, Anthropologie, Free People, FP Movement, and Urban Outfitters. Over the past year, 47% of the units rented on the platform were from our sister brands, and we regularly hear from our customers that rental allows them to experiment with new styles, which leads to reciprocity back to the brands on the platform.

首先，客戶體驗。我們知道，女性選擇 Nuuly 的主要原因是我們的品牌和時尚類別豐富，而品類的核心是我們品牌家族 Anthropologie、Free People、FP Movement 和 Urban Outfitters 的款式。過去一年，平台上租賃的單位中有 47% 來自我們的姊妹品牌，我們經常聽到客戶表示，租賃可以讓他們嘗試新的款式，從而為平台上的品牌帶來互惠。

A great example is Anthropologie's Collette Pant, which has been rented by nearly a quarter million different Nuuly subscribers, with nearly one-fifth of these subscribers also purchasing a Collette Pant from Anthropologie directly. This positive reciprocity also extends to our market brand partners, who tell us that they see many of their new customers referencing Nuuly as the place they first learned of them.

一個很好的例子是 Anthropologie 的 Collette Pant，它已被近 25 萬不同的 Nuuly 訂閱者租用，其中近五分之一的訂閱者還直接從 Anthropologie 購買了 Collette Pant。這種積極的互惠也延伸到了我們的市場品牌合作夥伴，他們告訴我們，他們看到許多新客戶將 Nuuly 視為他們第一次了解他們的地方。

In FY25, Nuuly initiated partnerships with Madewell, Alex Mill, Barber, Mother Denim, and Polo Ralph Lauren, among others, and we have more name brand additions planned for next year. Product collaborations, like the August collaboration with FARM Rio on 12 exclusive styles, have been very well received by subscribers, and we have recently announced fourth quarter collaborations with both Rachel Antonoff and Favorite Daughter, which have been strong marketing moments for both brands and Nuuly.

2025 財年，Nuuly 與 Madewell、Alex Mill、Barber、Mother Denim 和 Polo Ralph Lauren 等建立了合作夥伴關係，我們計劃明年增加更多知名品牌。產品合作，例如 8 月與 FARM Rio 合作推出 12 款獨家款式，受到訂戶的好評，我們最近宣布了與 Rachel Antonoff 和 Favourite Daughter 的第四季度合作，這對品牌和 Nuuly 來說都是強勁的營銷時刻。

In addition to the assortment, we know the digital platform has a direct impact on our customer experience. In February, we launched a feature allowing subscribers to create multiple lists of styles to rent in future Nuuly's. In June, we released significant improvements to our search and browse functionality, making our website faster and more intuitive.

除了品種之外，我們知道數位平台對我們的客戶體驗也有直接影響。二月份，我們推出了一項功能，允許訂閱者建立多個樣式列表，以便在未來的 Nuuly 中出租。六月，我們發布了對搜尋和瀏覽功能的重大改進，使我們的網站更快、更直觀。

In September, we introduced gift cards, making it easier for people to gift Nuuly to friends and family. And just a month ago, we launched our new Thrift Shop, a subscriber-only benefit allowing customers to buy a selection of rental inventory that will be held and shipped for free in their next Nuuly rental shipment. These features help to strengthen the customer experience as well as drive incremental revenue for the business.

9 月份，我們推出了禮品卡，讓人們可以更輕鬆地向朋友和家人贈送 Nuuly。就在一個月前，我們推出了新的 Thrift Shop，這是一項僅限訂閱者的福利，允許客戶購買精選的租賃庫存，這些庫存將在下一次 Nuuly 租賃發貨中免費持有和運輸。這些功能有助於增強客戶體驗並增加業務收入。

The second pillar of focus has been scaling our operations to ensure we have the necessary capacity and throughput required to serve the customer. At the start of this calendar year, we had one fulfillment center, which was operating at maximum capacity. In February, we opened our new 600,000 square-foot facility in Raymoor, Missouri, which has tripled our subscriber capacity.

第二個重點支柱是擴大我們的營運規模，以確保我們擁有為客戶提供服務所需的必要能力和吞吐量。今年年初，我們有一個履行中心，該中心正在以最大容量運作。 2 月份，我們在密蘇裡州雷莫爾開設了 60 萬平方英尺的新設施，使我們的用戶容量增加了兩倍。

Throughout this year, we have migrated millions of units of inventory, trained hundreds of new staff, and this facility is now processing nearly 60% of subscriber volume, with virtually no interruption to our customers. This smooth transition was only possible due to the excellent effort of our teams, and we believe we are now well-positioned to support our future growth.

今年全年，我們遷移了數百萬單位的庫存，培訓了數百名新員工，該設施現在正在處理近 60% 的用戶量，幾乎沒有對我們的客戶造成任何干擾。這種順利的過渡得益於我們團隊的出色努力，我們相信我們現在已經做好了支持我們未來發展的準備。

This fulfillment expansion has not only enabled us to scale to meet growing demand, it has also enabled us to be more efficient. In the third quarter, we achieved leverage in both logistics and delivery expenses, and in the first half of next year, we plan to implement more robust automation in the Raymoor facility that will enable us to gain further leverage in logistics expenses.

這種履行擴張不僅使我們能夠擴大規模以滿足不斷增長的需求，還使我們提高了效率。第三季度，我們在物流和送貨費用方面都實現了槓桿作用，明年上半年，我們計劃在 Raymoor 設施中實施更強大的自動化，這將使我們能夠在物流費用方面獲得進一步的槓桿作用。

Additionally, as the business continues to grow, we believe we can further leverage our fixed costs, and we will continue to reduce variable expenses, leading to even greater improvement in operating margins. Along with our focus on customer experience and operational improvements, our third pillar of focus has been improving brand awareness to drive customer acquisition.

此外，隨著業務的持續成長，我們相信我們可以進一步利用我們的固定成本，並且我們將繼續減少變動費用，從而進一步提高營業利潤率。除了我們對客戶體驗和營運改善的關注之外，我們的第三個重點支柱是提高品牌知名度以推動客戶獲取。

To this end, in Q3, we launched our largest marketing campaign yet. The campaign featured talking Nuuly bags and centered on the notion that buying is normal, renting is Nuuly. It was featured across a mix of channels, including streaming TV, meta, YouTube, and out-of-home placements, and all indications point to the awareness growth that we were seeking.

為此，我們在第三季啟動了迄今為止最大規模的行銷活動。該活動以會說話的 Nuuly 包為特色，其核心理念是購買是正常的，租賃是 Nuuly。它在多種管道上都有展示，包括串流媒體電視、元、YouTube 和戶外廣告，所有跡像都表明我們正在尋求認知度的成長。

To summarize, it is clear to us that we have built something special and Nuuly. We have become the largest fashion rental company in the world, with robust customer demand and subscriber growth, and a profitable business model. We know we are expanding the overall rental market by winning first-time customers, as over two-thirds of our new subscribers report that they have never rented clothing prior to Nuuly.

總而言之，我們很清楚我們已經建造了一些特別的、Nuuly 的東西。我們已成為全球最大的時裝租賃公司，擁有強勁的客戶需求和訂戶成長以及獲利的商業模式。我們知道，我們正在透過贏得首次客戶來擴大整個租賃市場，因為超過三分之二的新訂戶表示，他們在使用 Nuuly 之前從未租過衣服。

Our subscriber retention rates are high for a subscription service, with nearly 45% of subscribers still active after 12 months and nearly 40% still active after 36 months. And we believe the total addressable market for clothing rental services stretches well into the many millions, providing ample opportunity to grow significantly into the future.

我們的訂閱服務的訂戶保留率很高，近 45% 的訂戶在 12 個月後仍然活躍，近 40% 在 36 個月後仍然活躍。我們相信服裝租賃服務的潛在市場總量將達到數百萬，這為未來的大幅成長提供了充足的機會。

And helping to showcase why we are all so excited about what we've built in Nuuly. I'd like to thank the Nuuly team and all our shared service and brand partners for helping to achieve this success. And I'd like to particularly thank our subscribers for inviting Nuuly into their closets.

並幫助展示為什麼我們都對我們在 Nuuly 中構建的東西如此興奮。我要感謝 Nuuly 團隊以及我們所有的共享服務和品牌合作夥伴幫助實現這一成功。我要特別感謝我們的訂閱者邀請 Nuuly 進入他們的衣櫃。

Thank you. I will now turn the call to Sheila Harrington to discuss the FP Movement brand.

謝謝。我現在將致電 Sheila Harrington，討論 FP Movement 品牌。

Thank you, Dave, and good afternoon, everyone. Today, I will discuss more detail around the ongoing success of FP Movement, as well as the future direction and ambitions for the brand. FP Movement strives to be a leading female athletic brand, prioritizing performance alongside fashion to allow for the creative expression of the individual.

謝謝戴夫，大家下午好。今天，我將詳細討論 FP Movement 的持續成功，以及品牌的未來方向和野心。 FP Movement 致力於成為領先的女性運動品牌，將性能與時尚放在一起，以實現個人的創意表達。

Product innovation and creativity are the cornerstone of the brand's growth. This is evident as the team has created and built powerful first-to-market businesses, such as the Onesie and Runsie, and how it embraces color, pattern, washes, and textures that uniquely define the brand, as well as the continual evolution of silhouette and outfitting.

產品創新和創造力是品牌成長的基石。這一點很明顯，因為團隊創建並建立了強大的率先上市業務，例如 Onesie 和 Runsie，以及它如何擁抱獨特定義品牌的顏色、圖案、水洗和紋理，以及不斷發展的品牌形象。

We put fashion in a performance business that typically shies away from this. We strive to service the fully active lifestyle of our consumers committed in excellence in performance to allow them to move comfortably and confidently in a range of activities. This year and this quarter's results reflect this commitment with our bra and performance apparel from studio court and trail outpacing growth in our retail segment. We continue to evolve and invest in the right talent and sourcing to fuel this commitment within our organization, blending it with the fashion and aesthetic handwriting true to the brand.

我們將時尚置於通常迴避這一點的表演行業中。我們致力於為消費者提供全面且積極的生活方式服務，致力於卓越的性能，讓他們在一系列活動中舒適、自信地行動。今年和本季的業績反映了這一承諾，我們的工作室球場和越野跑的胸罩和功能性服裝的成長速度超過了零售部門的成長速度。我們不斷發展並投資於合適的人才和採購，以推動我們組織內的這項承諾，將其與品牌的真實時尚和美學筆跡相融合。

FP Movement has achieved stellar growth across all three of its distribution channels this year, as well as this past quarter. FP Movement's early and explosive digital growth was primarily driven by Free People's brand and digital strengths.

FP Movement 今年以及上個季度在其所有三個分銷管道中都實現了驚人的成長。 FP Movement 早期的爆炸性數位成長主要是由 Free People 的品牌和數位優勢推動的。

More recently, the brand has achieved higher visibility and name recognition, a higher portion of the brand's new consumers are independently driven first by FP Movement, as we see strong increases in unique brand searches and net new to the brand ecosystem through FP Movement. We attribute this positive change to be from the consistent brand and digital marketing, along with the expansion of both stores and wholesale presence, and are only at the beginning of our journey.

最近，該品牌獲得了更高的知名度和知名度，該品牌的新消費者中有更多是由FP Movement 獨立驅動的，因為我們看到獨特的品牌搜尋量和透過FP Movement 進入品牌生態系統的淨新量強勁成長。我們將這種積極的變化歸因於一致的品牌和數位行銷，以及商店和批發業務的擴張，而這只是我們旅程的開始。

The sustained growth of the digital channel forms the foundation of our distribution strategy, but we also have a significant opportunity to continue to expand the store suite and add wholesale partners and build our FP Movement brand.

數位通路的持續成長構成了我們分銷策略的基礎，但我們也有一個重要的機會繼續擴大商店套件、增加批發合作夥伴並建立我們的 FP Movement 品牌。

Wholesale channel growth this year has been exceptionally strong, driven by both large premier strategic partnerships within the athletic space and the strength of sales within their business, as well as our specialty store business, which grew at 100% last quarter. Our specialty strategy encompasses studio, run, along with outdoor sporting goods stores, aligning with our product strategy and creating a path and confidence to sustained long-term growth.

今年的批發通路成長異常強勁，這得益於運動領域內的大型頂級策略合作夥伴關係、其業務內的銷售實力，以及上季度增長 100% 的專賣店業務。我們的專業策略涵蓋工作室、跑步以及戶外運動用品​​商店，與我們的產品策略保持一致，並為持續的長期成長創造一條道路和信心。

Standalone stores remain a significant part of FP Movement's growth plans. Existing stores are achieving strong profitability, driven by healthy sales per square foot, strength across all metrics, including AOV, UPT, and conversion.

獨立商店仍然是 FP Movement 成長計劃的重要組成部分。在每平方英尺健康的銷售額以及所有指標（包括 AOV、UPT 和轉換）的實力的推動下，現有商店正在實現強勁的獲利能力。

This past quarter and year to date, our comparable stores have produced high single-digit gains. This year, we plan to open a total of 25 new standalone stores, increasing our total to 63 standalone stores and 51 shop-and-shops. While the footprint of most of our standalone stores is under 2,500 selling square feet, in May we opened a larger store in SoHo, New York.

過去一個季度和今年迄今為止，我們的同類商店都實現了高個位數的成長。今年，我們計劃新開 25 家獨立店，使獨立店總數增至 63 家，店加店 51 家。雖然我們大多數獨立商店的佔地面積都在 2,500 平方英尺以下，但 5 月我們在紐約 SoHo 開設了一家更大的商店。

It is a spectacular expression of the brand. Since our first store opened in 2020, we have increased our average square footage by 30% and continue to see elevated sales per square foot. We are confident that the typical Movement store of the future will be between 2,500 and 3,000 square feet and believe the fleet could include at least 300 standalone stores in North America.

這是該品牌的精彩表達。自 2020 年第一家商店開業以來，我們的平均面積增加了 30%，每平方英尺銷售額持續成長。我們相信，未來典型的 Movement 商店面積將在 2,500 至 3,000 平方英尺之間，並相信該艦隊在北美可能包括至少 300 家獨立商店。

Not only are our stores highly productive from a sales perspective, but they also provide education and touch points for the brand and serve as centers for community building. Our store and marketing teams are committed to consistent activation and events, including map-based workouts and run clubs across North America. The attendance and energy are contagious and motivate us to do more.

我們的商店不僅從銷售角度來看具有很高的生產力，而且還為品牌提供教育和接觸點，並充當社區建設中心。我們的商店和行銷團隊致力於一致的活化和活動，包括北美各地基於地圖的鍛鍊和跑步俱樂部。出席人數和精力具有感染力，並激勵我們做得更多。

Over the last five years, FP Movement has achieved a compounded growth rate of 39%. The brand continues its strong performance in the third quarter this year by delivering a 30% year-over-year increase. This growth was driven across all three channels. The wholesale channel led the way with 74% gains, while the retail segment delivered a 19% increase.

過去五年，FP Movement 實現了 39% 的複合成長率。該品牌今年第三季持續保持強勁表現，較去年同期成長 30%。這一增長是由所有三個渠道推動的。批發通路以 74% 的漲幅領先，而零售通路則成長了 19%。

Coupled with strong top-line growth, operating profits over the same five years grew by triple digits. Third quarter profits remained strong, fueled by increased sales, rigorous inventory management, higher IMUs, and strong expense control.

加上強勁的營收成長，五年內營業利潤成長了三位數。在銷量增加、嚴格的庫存管理、更高的 IMU 和強大的費用控制的推動下，第三季利潤保持強勁。

Fiscal '25 is shaping up to be another record-breaking year for FP Movement. It was jump-started by our most successful marketing campaign to date, entitled Stand Out, Never Still. This campaign authentically celebrates our focus on the female athlete with a diverse roster of brand ambassadors, including NCAA athletes, Olympians, professional athletes, and women forging their own activity-based paths.

25 財年將成為 FP Movement 另一個破紀錄的一年。它是由我們迄今為止最成功的行銷活動啟動的，名為「脫穎而出，永不靜止」。該活動透過多元化的品牌大使名單真正體現了我們對女性運動員的關注，其中包括 NCAA 運動員、奧運選手、職業運動員以及正在開拓自己的活動道路的女性。

Our goal over the next few years is to surpass $1 billion in sales, but longer term, we believe the brand has an opportunity to be substantially larger. Our aim is to become the leading fashion-infused female athletic brand globally. We remain unwaveringly focused on meeting her needs and excelling in both performance and fashion. Our confidence is rooted in the strong creativity and passion of our team, our execution to date, and the market opportunities we see.

我們未來幾年的目標是銷售額超過 10 億美元，但從長遠來看，我們相信該品牌有機會進一步擴大規模。我們的目標是成為全球領先的時尚女性運動品牌。我們始終堅定不移地致力於滿足她的需求，並在性能和時尚方面表現出色。我們的信心植根於我們團隊強大的創造力和熱情、我們迄今為止的執行力以及我們看到的市場機會。

Finally, I wish to recognize and thank the entire FP Movement team. The brand's amazing success is a tribute to their hard work, passion, and dedication.

最後，我要向整個 FP 運動團隊表達認可和感謝。品牌的驚人成功歸功於他們的辛勤工作、熱情和奉獻。

I'll now pass the call over to Melanie.

我現在將把電話轉給梅蘭妮。

Thank you, Sheila. Now we will discuss our thoughts on the fourth quarter financial performance and fiscal year FY25 performance. The following Q4 forward-looking statements reflect comparison to Q4 FY24 results adjusted for certain one-time items in the prior year.

謝謝你，希拉。現在我們將討論我們對第四季度財務業績和 2025 財年業績的看法。以下第四季前瞻性陳述反映了與前一年某些一次性專案調整後的 2024 財年第四季業績的比較。

Based on the start of the quarter, we believe that fourth quarter total company sales growth could be mid-single digits. Sales growth in Q4 could result from low single-digit growth in retail segment comp and high teen growth in the wholesale segment. In addition, we believe that new lease segment revenue growth could be mid-double digits.

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為中個位數。第四季的銷售成長可能源自於零售部門的低個位數成長和批發部門的高青少年成長。此外，我們認為新租賃業務的營收成長可能達到中兩位數。

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 100 basis points compared to the prior year fourth quarter. The increase in gross profit margin could be primarily due to lower markdowns, particularly at the Urban Outfitters brand, as well as higher initial product margins from cross-functional initiatives.

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100個基點。毛利率的成長可能主要是由於降價幅度的降低（尤其是 Urban Outfitters 品牌），以及跨職能措施帶來的初始產品利潤率的提高。

Moving on to SG&A expenses, based on our current sales performance and plan, we believe SG&A growth for the fourth quarter will increase in the mid-single digits. Our planned growth in SG&A could be primarily driven by increased marketing expenses to drive growth in customers and sales at Anthropologie, Free People, FP Movement, and Nuuly.

接下來是銷售、管理及行政費用，根據我們目前的銷售業績和計劃，我們相信第四季度的銷售、管理和行政費用增長將達到中個位數。我們計劃的 SG&A 成長主要是由於行銷費用的增加，以推動 Anthropologie、Free People、FP Movement 和 Nuuly 的客戶和銷售成長。

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 fourth quarter and 24% for the full year.

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 24.25%，全年的有效稅率約為 24%。

We believe that inventory levels in the fourth quarter could grow at a rate similar to fourth quarter 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 Nuuly rental fulfillment center in Raymoor, Missouri, which opened in the first quarter. And the remaining 25% would be our normal capital investments supporting IT, home office, and logistics operations.

我們認為第四季度的庫存水準可能會以與第四季度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。大約 50% 與零售店擴張和支持有關。大約 25% 與物流能力投資有關，包括第一季開業的位於密蘇裡州雷莫爾的 Nuuly 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 58 new stores and closing approximately 31 stores during FY25. 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, 13 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，我們將在 2025 財年開設約 58 家新店並關閉約 31 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、13 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, Chief Executive Officer of URBN.

現在，我很高興將電話轉給 URBN 執行長迪克。

Thank you, Melanie, and thanks also to Sheila and Dave. We're happy to share the incredible success stories of these two fast-growing brands. Despite being our smallest and youngest, both brands are punching above their weight by making major contributions to our top-line growth while also delivering impressive profitability.

謝謝你，梅蘭妮，也感謝希拉和戴夫。我們很高興分享這兩個快速發展的品牌令人難以置信的成功故事。儘管是我們規模最小、最年輕的品牌，但這兩個品牌都在為我們的營收成長做出重大貢獻的同時，也帶來了令人印象深刻的獲利能力，從而脫穎而出。

They're not only adding value today but are poised to become an even more important part of the URBN portfolio of brands moving forward. I'm excited by our many growth opportunities, and I'm confident in the continued success of URBN.

如今，它們不僅在增加價值，而且還將成為 URBN 品牌組合中更重要的一部分。我對我們眾多的發展機會感到興奮，並對 URBN 的持續成功充滿信心。

In closing, I thank our co-presidents, Meg and Frank, our brand leaders, Tricia, Sheila, and Dave, their merchant, creative, and operating teams, our shared service teams, and our 31,000 associates worldwide. Their collective efforts produce another record 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. And finally, I thank our shareholders for their continued support. That concludes our prepared remarks. I now turn the call over to your questions.

最後，我要感謝我們的聯合總裁 Meg 和 Frank，我們的品牌領導者 Tricia、Sheila 和 Dave，他們的商人、創意和營運團隊，我們的共享服務團隊，以及我們在全球的 31,000 名員工。他們的共同努力創造了另一個創紀錄的季度，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。最後，我感謝股東的持續支持。我們準備好的演講到此結束。我現在將電話轉至回答你的問題。

(Operator Instructions)

（操作員說明）

And our first question will come from the line of Lorraine Hutchinson with Bank of America.

我們的第一個問題來自美國銀行的洛林‧哈欽森 (Lorraine Hutchinson)。

Thank you. Good afternoon. Could you talk to the changes that have been most successful as you begin to stabilize the UO business? And how are you planning inventory for the brand for the fourth quarter and then into spring?

謝謝。午安.您能談談在您開始穩定 UO 業務時最成功的變革嗎？您如何規劃該品牌第四季和春季的庫存？

Hi, Lorraine. It's Shay. Thanks for the question. First, I would say that we are really confident in the strategy that we've laid out and excited about the progress that we've made. With a firm understanding of who our customer is, our team has been able to apply an action against those strategies. And there's a couple of areas that I think we feel particularly excited about.

嗨，洛林。是謝伊。謝謝你的提問。首先，我想說，我們對我們所製定的策略充滿信心，並對我們所取得的進展感到興奮。透過深入了解我們的客戶是誰，我們的團隊能夠針對這些策略採取行動。我認為有幾個領域讓我們感到特別興奮。

First, from an assortment perspective, the areas of the assortment that we've been able to impact and invest in are really showing positive momentum. Frank mentioned some of those, but denim, lounge, home accessories, and women's accessories are notable. Seeing lots of progress but also momentum as we enter the fourth quarter, and that feels really good when we think about the fact that we've invested into those for fourth quarter.

首先，從品類角度來看，我們能夠影響和投資的品類領域確實呈現出正面的動能。 Frank 提到了其中一些，但牛仔布、休閒服、家居飾品和女士配件值得注意。當我們進入第四季度時，我們看到了很多進展，但也看到了動力，當我們想到我們已經在第四季度進行了投資的事實時，感覺真的很好。

As well, we're seeing holiday off to a great start, and that feels really good. Second, we're excited to see traffic momentum building in our selling channels as we enter the fourth quarter, and we think this is a nice reflection on the team's efforts in marketing that they've been applying.

同樣，我們為假期開了個好頭，感覺真的很好。其次，我們很高興看到進入第四季後我們的銷售管道的流量勢頭不斷增強，我們認為這很好地反映了團隊在行銷方面所做的努力。

Our retail channel specifically, as you heard Frank mention, is seeing sales momentum build and an impressive best-of-year performance from a comp basis coming out of October as we start the holiday season. It feels great.

具體來說，正如您聽到Frank 所提到的那樣，我們的零售通路正在看到銷售勢頭增強，並且從10 月假期開始之際的比較來看，我們的零售通路取得了令人印象深刻的年度最佳業績。感覺很棒。

And then last, I would say from an operating perspective, making great strides on the bottom line, and I think this will address your second question, as we've been managing inventory with more discipline. And that is related to where we're investing from an inventory perspective but also making sure we manage that in line with sales.

最後，我想說，從營運的角度來看，在盈利方面取得了長足的進步，我認為這將解決你的第二個問題，因為我們一直在更嚴格地管理庫存。這與我們從庫存角度進行投資有關，同時也確保我們根據銷售情況進行管理。

(Operator Instructions) Adrienne Yih with Barclays.

（操作員指示）Adrienne Yih 與巴克萊銀行。

Thank you very much, and congratulations, everybody, on the really great outcome here. For you -- for you, back in spring we were talking about the silhouette shift, and I always like to get maybe for you or anybody who wants to pipe in on kind of what we're seeing with the little paired back to bigger bottoms and the denim shift. We have heard from many others back to school and to fall that it's scaling on adoption.

非常感謝你們，並祝賀大家，取得了非常好的成果。對你來說——對你來說，早在春天我們就在談論廓形的轉變，我總是喜歡為你或任何想要了解我們所看到的小褲裝回到大褲衩的人提供幫助。我們從許多其他回到學校並跌倒的人那裡聽說，它的收養規模正在擴大。

So normally these are more than one-year events. Does it give each of you at your brands more clarity, more conviction, kind of on what to buy as we go into spring of 2025? And then for Frank at UO, you said it will be less of a loss. Like we know that the UO division was negative mid-single-digit segment margin.

所以通常這些都是一年以上的事件。當我們進入 2025 年春季時，這是否會讓你們品牌中的每個人對於該買什麼更加清晰、更加堅定？對於俄勒岡大學的弗蘭克來說，你說這會減少損失。如我們所知，UO 部門的部門利潤率為負中個位數。

What would it take in terms of margin recapture? Are you going for margin recapture first, which would kind of put a lid on the comp recovery, sales recovery? How should we think about margins versus sales at UO? Thank you.

收回保證金需要什麼？您是否首先要收回利潤，這會限制公司的復甦、銷售的復甦？我們應該如何考慮 UO 的利潤率與銷售額？謝謝。

Okay, Adrienne, I'll take a shot at the first one. I think you know that we were talking about the silhouette change. It seems like it was three years ago, and talked about how pants were getting fuller and wider, and we have continued on that path.

好的，艾德麗安娜，我會嘗試第一個。我想你知道我們正在談論輪廓的變化。好像是三年前的事了，談論褲子如何變得更豐滿、更寬，我們繼續沿著這條路走下去。

I think they are probably about as full and as wide as they can possibly get now. I don't know what's next, and if I did, I guess I wouldn't tell you on the call so that we don't broadcast that to all the competitors that might be on. But, no, we're still seeing good success with the barrel shape and other shapes that the teams have come up with over the last few years.

我認為它們可能已經達到了目前所能達到的最飽滿和最寬的程度。我不知道接下來會發生什麼，如果我知道的話，我想我不會在電話中告訴你，這樣我們就不會向所有可能參加的競爭對手廣播這一點。但是，不，我們仍然看到過去幾年團隊提出的桶形和其他形狀取得了良好的成功。

I guess, Adrienne, as it relates to Urban's return to profit, sort of the order of cadence, you have it exactly right. We're focused on that reg price consumer first, the quality of the business and the quality of earnings. So you're seeing it in the order, and that order is intentionally being executed, where MMU rate is improved, and it was great to see Sheila, Shea and team deliver that here in the third quarter, which drove a lower markdown rate, which did lower their loss.

我想，艾德莉安，因為它關係到厄本的利潤回報，有點節奏的順序，你說得完全正確。我們關注的是消費者至上的監管價格、業務品質和獲利品質。所以你在訂單中看到它，並且該訂單是有意執行的，其中MMU 率得到了提高，很高興看到Sheila、Shea 和團隊在第三季度實現了這一目標，這推動了較低的降價率，這確實降低了他們的損失。

We are obviously aware that in order for the brand to fully recapture and return to profitability, that they are going to have to drive top-line sales gains, and that is the next leg of the execution that we need to get in order to leverage off on fixed expenses.

我們顯然意識到，為了讓品牌完全重新奪回並恢復獲利，他們將必須推動營收成長，而這是我們需要執行的下一個步驟，以便利用固定開支。

And right now, we're still in the early stages. We're not in a position where we're going to forecast when that's going to come, but we are happy to see the first leg of starting to recapture margin rates is starting to come to fruition.

目前，我們仍處於早期階段。我們無法預測這種情況何時會發生，但我們很高興看到開始重新奪回保證金率的第一階段開始取得成果。

Matthew boss with JP Morgan.

馬修是摩根大通的老闆。

Great. Thanks. So, Dick, maybe could you elaborate on your optimism for fourth quarter comp store sales and maybe how each brand is tracking so far in November? And then, Melanie, could you speak to gross margin puts and takes in the fourth quarter and help us to think about MMU versus IMU drivers remaining into next year?

偉大的。謝謝。那麼，迪克，您能否詳細說明一下您對第四季度比較店銷售的樂觀態度，以及每個品牌 11 月份迄今為止的跟踪情況如何？然後，Melanie，您能否談談第四季度的毛利率變動和毛利率變動，並幫助我們思考明年仍保留的 MMU 與 IMU 驅動程式？

Okay. I'll give it a shot. As I told you, we are optimistic about the fourth quarter. During the third quarter and the first couple of weeks in the fourth quarter -- I'm sorry, the third quarter in the first couple of weeks in the fourth quarter, we experienced an awful lot of noise in the system. I guess I would call it.

好的。我會嘗試一下。正如我告訴你的，我們對第四季持樂觀態度。在第三季和第四季的前幾週——我很抱歉，第三季和第四季的前幾週，我們在系統中遇到了很多噪音。我想我會打電話給它。

That ranged from multiple wars on multiple continents, multiple deadly hurricanes that ravaged parts of Florida and the southeast, labor disputes, unusually warm weather up and down the east and west coast, and, of course, the presidential election. Through all of those, the consumer has remained what I would characterize as remarkably resilient.

其中包括多個大陸的多場戰爭、肆虐佛羅裡達州部分地區和東南部的多場致命颶風、勞資糾紛、東西海岸異常溫暖的天氣，當然還有總統大選。透過所有這些，消費者仍然保持著我所說的非常有彈性的特徵。

And those events didn't seem to have much lasting impact on discretionary spending. The first couple weeks of November, before the weeks became non-comparable due to the Thanksgiving shift, we saw a continuation of the strong sales from October. And so that's what has given us a particularly strong hope that Q4 will turn out to be very similar to what we experienced in Q3.

這些事件似乎並沒有對可自由支配支出產生太大的持久影響。 11 月的前幾週，在由於感恩節轉變而變得不可比之前，我們看到了 10 月以來強勁銷售的延續。因此，這給了我們特別強烈的希望，即第四季度的情況將與第三季度的經歷非常相似。

Mel, do you want to take the second part? Frank?

梅爾，你想看第二部分嗎？坦率？

Yes, I'm happy to take the second part. I will ask that we just try and keep it to one question going forward so we can try and get as many in as possible. As it relates to fourth quarter gross profit margin, yes, we think we can show gains similar to the 100 basis points of what we delivered in the third quarter. That would be driven by IMU.

是的，我很高興參加第二部分。我會要求我們盡量將其保留在一個問題上，這樣我們就可以嘗試讓盡可能多的人參與其中。由於它與第四季度的毛利率相關，是的，我們認為我們可以顯示與第三季交付的 100 個基點類似的收益。這將由 IMU 驅動。

But honestly, the biggest driver would be the lower markdown rate, largely being driven by Urban Outfitters, who is up against a very high rate from the previous year. As Shea mentioned, Urban Outfitters is entering the quarter with much improved balance of inventory to sales. And they continue to see improvements, most specifically in the store channel, each of which we believe will contribute to a lower markdown rate on a year-over-year basis.

但老實說，最大的推動因素是較低的降價率，這主要是由 Urban Outfitters 推動的，而去年的降價率非常高。正如 Shea 所提到的，Urban Outfitters 進入本季時，庫存與銷售的平衡大大改善。他們繼續看到改進，特別是在商店通路方面，我們相信每項改進都將有助於降低同比降價率。

Thank you one moment for our next question and that will come from the line of Paul Le Juice with city. Your line is open.

感謝您提出我們的下一個問題，問題將來自 Paul Le Juice 與 city 的合作。您的線路已開通。

Thanks, guys. Can you maybe give your early thoughts about store gross for the next year, both openings and closings? Specifically, I'm curious how you're thinking about Urban Outfitters, closings, and what are the goals for newly, as you think about 2025?

謝謝，夥計們。您能否談談明年商店總收入（包括開業和關門）的初步想法？具體來說，我很好奇您如何看待 Urban Outfitters、關閉以及您對 2025 年的新目標是什麼？

I can start. Hi, Paul. It's Shea. Well, at Urban, particularly, we have a lot of flexibility with our real estate portfolio. In fact, over the next few years, I think it's three years, over half of our leases will come available, and we are actively evaluating those, really through the lens of making sure we right-size our productivity and profitability, which means ensuring we reduce our average store size, aligning our footprint to really the most optimal locations for where our customers are and where they shop.

我可以開始了。嗨，保羅。是謝伊。嗯，特別是在 Urban，我們的房地產投資組合具有很大的靈活性。事實上，在接下來的幾年裡，我認為三年後，我們一半以上的租賃將可用，我們正在積極評估這些，真正透過確保我們正確調整我們的生產力和盈利能力的鏡頭，這意味著確保我們縮小了平均商店規模，將我們的足跡調整到最適合客戶所在位置和購物地點的位置。

And then making sure we right-size and recalibrate our footprint within the store to better align with our product strategies, really with the goal of driving more top line and mitigating any markdown pressure in our stores. I think that will end up looking like some closures, some downsizes, some relocations, and in some cases it may mean relocating to a better footprint that actually is smaller as well.

然後確保我們調整和重新調整商店內的足跡，以更好地符合我們的產品策略，真正的目標是推動更多的收入並減輕商店的降價壓力。我認為這最終看起來像是一些關閉、一些規模縮小、一些搬遷，在某些情況下，這可能意味著搬遷到一個更好的佔地面積，但實際上也更小。

And, Mel, do you want to give the number of stores?

梅爾，你想提供商店的數量嗎？

Absolutely. I would just say it's very similar. We haven't finished our plans. We'll clearly give more direction on the fourth quarter earnings call, but for purposes of modeling, I would say for the outside of Urban Outfitters, the other brands will look very similar in their store openings as an FY25.

絕對地。我只想說它非常相似。我們還沒有完成我們的計劃。我們將在第四季度的財報電話會議上明確給出更多方向，但出於建模目的，我想說，對於 Urban Outfitters 的外部，其他品牌的開店情況將與 2025 財年非常相似。

Okay. Thank you.

好的。謝謝。

Okay. Thank you. And, Paul, just to jump in for the Nuuly goals, we're feeling very good about the growth that we're seeing and excited about the future next year, very encouraged by customer feedback, the growth of the awareness that we're seeing from the brand, and excited to deliver more growth next year, thinking about a mid-double-digit growth rate into the next year and continuing to find more efficiency on the bottom line, as well as to leverage our fixed costs and drive more profits. So very excited about the Nuuly growth.

好的。謝謝。而且，Paul，為了實現 Nuuly 目標，我們對所看到的成長感到非常滿意，並對明年的未來感到興奮，客戶反饋以及我們意識的增強都使我們深受鼓舞。高興明年能實現更多成長，考慮明年實現中兩位數的成長率，並繼續提高利潤效率，並利用我們的固定成本並推動更多成長利潤。對於 Nuuly 的成長感到非常興奮。

Alex Straton from Morgan Stanley.

摩根士丹利的亞歷克斯·斯特拉頓。

Perfect. Thanks so much. Congrats on a nice quarter. I wanted to focus quickly here on Free People. I think you called out higher discounting activity in the quarter, and then it looks like the forward guide, I've seen a little bit of a slowdown in sales trends quarter-over-quarter. So can you just unpack kind of what's going on with that banner for me?

完美的。非常感謝。恭喜您度過了一個美好的季度。我想在這裡快速關注自由人。我認為您提到了本季度更高的折扣活動，然後看起來就像前瞻性指南一樣，我看到銷售趨勢逐季度略有放緩。那麼你能為我解開那條橫幅的情況嗎？

Sure. Hi. It's Sheila. We are really pleased, continue to be pleased, with Free People's results at right price. The business remains consistently strong when we look at our multi-step year. We're up against a fantastic margin year from last year. So when we've addressed, we've moved quickly to address a lot of, like, fashion learnings. We move quickly, and that will keep us healthy in the long term.

當然。你好。是希拉。我們對 Free People 以合適的價格取得的成果感到非常高興，並將繼續感到高興。當我們回顧這一多步驟的一年時，該業務仍然持續強勁。與去年相比，我們今年的利潤率非常高。因此，當我們解決這個問題時，我們會迅速採取行動來解決許多問題，例如時尚學習。我們行動迅速，這將使我們長期保持健康。

So when I look at Free People, we're gaining our customer, we're retaining our active customer. Any area that we have focused on with meaning around the assortment is producing and exceeding expectations, frankly. So just small, quick learnings and moving quickly on them is sort of where we've been focused.

因此，當我關注 Free People 時，我們正在贏得客戶，我們正在留住活躍客戶。坦白說，我們所關注的與該品種相關的任何領域都正在產生並超出預期。因此，我們一直關注的重點是小規模、快速的學習並快速採取行動。

And, Alex, I don't know if you heard Frank when he gave his commentary, but Free People, even though they had a slightly higher markdown rate in Q3, remains the lowest markdown rate of any of our brands, and it was up against a markdown rate last year, which is completely unsustainable. And so I don't think there's any issue with their markdown rate.

而且，Alex，我不知道 Frank 發表評論時您是否聽到了，但是 Free People，儘管他們在第三季度的降價率略高，但仍然是我們所有品牌中降價率最低的，並且它有所上升與去年的降價幅度相比，這是完全不可持續的。所以我認為他們的降價率沒有任何問題。

Mark Altschwager with Baird.

馬克·阿爾茨瓦格和貝爾德。

Good afternoon. Thank you for taking my question. On Free People movement, do you view a growth rate in the 30% range as sustainable in the medium term? And as we think about margins, is Free People movement accretive to the brand overall? Any color there would be helpful. Thank you.

午安.謝謝你回答我的問題。關於自由人運動，您認為 30% 範圍內的成長率在中期內是否可持續？當我們考慮利潤時，Free People 運動是否會對整個品牌產生影響？任何顏色都會有幫助。謝謝。

Yes, I can handle it. We continue to see double-digit growth. I don't want to commit to a number, but we believe that with our store growth increasing -- sorry, our store count growing, as well as our opportunity within our specialty store and wholesale area, there's no reason that this brand can't continue to contribute large top-line growth to the company. We do think that our business is separate and we're getting a new customer through FP movement versus Free People.

是的，我能應付。我們繼續看到兩位數的成長。我不想透露具體數字，但我們相信，隨著我們商店的增長，抱歉，我們的商店數量不斷增加，以及我們在專賣店和批發領域的機會，這個品牌沒有理由不能」繼續為公司貢獻巨大的收入增長。我們確實認為我們的業務是獨立的，我們透過 FP 運動而不是 Free People 獲得了新客戶。

Dana Telsey with Telsey Advisory group.

達納·特爾西 (Dana Telsey) 與特爾西諮詢小組。

Hi. Good afternoon, everyone. If you look at the growth margin and the opportunity there, you had mentioned about the cross-functional initiative. Where are we in that journey? What do you see the opportunity for the gross margin from those initiatives? And then with the level of markdowns, particularly at the Urban Outfitters Division improving, how do you see inventory ordering and planning for markdowns from there going forward given the compares? Thank you.

你好。大家下午好。如果你看看那裡的成長幅度和機會，你會提到跨職能計畫。我們在這段旅程中處於什麼位置？您認為這些措施帶來的毛利率機會有哪些？然後，隨著降價水準的提高，尤其是 Urban Outfitters 部門的降價水準的提高，考慮到比較，您如何看待未來的庫存訂購和降價計劃？謝謝。

Thanks for your question, Dana. This is Frank. And as you know, we're in the final year of our three-year journey of setting out a goal for ourselves to improve IMU by 500 basis points. Really proud to report that, you know, supported by the sourcing organizations and the brands delivering meaningful IMU growth, we think we're going to hit that number. It's not just be really, really close here in the fourth quarter.

謝謝你的提問，達納。這是弗蘭克.如您所知，我們正處於三年旅程的最後一年，我們為自己設定了將 IMU 提高 500 個基點的目標。非常自豪地報告，您知道，在採購組織和品牌的支持下，IMU 實現了有意義的成長，我們認為我們將達到這個數字。這不僅僅是在第四季度非常非常接近。

There's a litany of drivers -- cross-functional drivers that we've used to deliver that growth. Honestly, probably just too much detail to get into on the call. But we're confident that we can continue to drive that growth into the fourth quarter.

我們用一長串的驅動因素——跨職能的驅動因素來實現這種成長。老實說，電話中可能涉及的細節太多了。但我們有信心能夠在第四季繼續推動這一成長。

As it relates to sort of inventory planning and markdowns, I think all of the brands are planning inventory to basically be in line with sales going forward. We know it was a little, just slightly elevated here as we closed the third quarter, which was honestly solely about us just bringing some key items in earlier to protect the holiday season.

由於它涉及庫存計劃和降價，我認為所有品牌都在計劃庫存，以基本上與未來的銷售保持一致。我們知道，在第三季結束時，數字略有上升，老實說，這只是我們提前帶來一些關鍵物品以保護假期。

Obviously we knew about the planned strike here on the east coast and wanted to protect our receipts. So we did bring in some items slightly earlier. But as we plan inventory going forward, we expect it to be in line with sales and not to hurt markdowns.

顯然，我們知道東海岸計劃舉行的罷工，並希望保護我們的收入。所以我們確實提前引進了一些物品。但當我們計劃未來的庫存時，我們預計它將與銷售保持一致，並且不會影響降價。

Marni Shapiro from The Retail Tracker.

來自《零售追蹤》的瑪尼·夏皮羅。

Hey, guys, congratulations. And just in case I forget, please have a great Black Friday week. Tricia, I wanted to ask you about Anthropologie. The stores are just, they're absolutely stunning. They're absolutely stunning. And every single gift list, including my own, but every single gift list out there, I have found Anthropologie on every single gift list. And it is at a stunning level this year.

嘿，夥計們，恭喜你。以防萬一我忘記了，祝您黑色星期五度過愉快的一周。特里西婭，我想問你關於人類學的事。這些商店真是令人驚嘆。它們絕對令人驚嘆。每一份禮物清單，包括我自己的，但在每一份禮物清單上，我都在每一份禮物清單上找到了 Anthropologie。今年更是達到了驚人的水準。

Can you talk a little bit about some of the away from apparel, some of the other things you're doing? I think daily practice looks actually fantastic, and no one's really talking about it. Your handbag assortment has really stood out to me as well. You're getting different brands into the store than you used to. Could you just talk a little bit about where you're kind of tweaking around the edges of what's already successful to get even more excited?

您能談談您正在做的一些非服裝方面的事情嗎？我認為日常練習看起來確實很棒，但沒有人真正談論它。你的手提包品種對我來說也很引人注目。你在商店裡看到的品牌與以前不同。您能否簡單談談您在已經成功的事情的邊緣進行了哪些調整，以變得更加興奮？

Marni, it sounds like you want to become an influencer.

Marni，聽起來你想成為一個有影響力的人。

Yes, in my next life. I want to be TikTok famous.

是的，在我的下輩子。我想在 TikTok 上出名。

Tricia, you want to answer?

特里西婭，你想回答嗎？

Yeah. Marni, thank you so much. I'm incredibly proud of our team. They've been really focused, honestly, for the last three years on our strategies around modernizing our product assortment. And that came from not only expanding some of the categories that we're the most well-known for, but, as you mentioned, some of the nuanced smaller categories that can kind of round out our assortment and then become really compelling, particularly gift ideas, I think, during the holidays.

是的。瑪尼，非常感謝你。我為我們的團隊感到無比自豪。老實說，在過去的三年裡，他們一直非常關注我們圍繞產品種類現代化的策略。這不僅來自於擴展我們最著名的一些類別，而且正如您所提到的，一些細微差別的較小類別可以使我們的品種更加豐富，然後變得非常引人注目，尤其是禮品我想，假期期間的想法。

Our accessories expansion has gone extremely well in stores. So the footprint of not only accessories as handbags, as you mentioned, but our shoe assortment has become a very compelling growth part of our business, but also is a very strong gift-giving category as well. We now have shoes in over 80 stores, and it's growing considerably both in stores and online.

我們的配件擴張在商店中進展得非常順利。因此，正如您所提到的，不僅是手袋等配件的足跡，我們的鞋子品種也已成為我們業務中非常引人注目的增長部分，而且也是一個非常強大的禮品贈送類別。目前，我們在 80 多家商店中銷售鞋子，而且商店和網路上的銷售量都在大幅增加。

And daily practice we've been very, very pleased with. It's growing tremendously. Our teams are evolving the product assortment. They're learning every day from what the customer is responding to. We have some nice growth plans for daily practice overall. So thank you very much for your comments. We're having a good time and enjoying some nice positive results in the holidays so far.

我們對日常練習非常非常滿意。它正在急劇增長。我們的團隊正在不斷改進產品種類。他們每天都在了解客戶的反應。我們為日常練習制定了一些不錯的成長計畫。非常感謝您的評論。到目前為止，我們在假期中度過了愉快的時光並取得了一些積極的成果。

Janet Kloppenburg from JJK Research Associates.

JJK Research Associates 的 Janet Kloppenburg。

Hi, everybody. Congrats on everything. Thank you. And how things are going. I have two quick questions. One, Shea, I was delighted to hear you say that you understand exactly who the Urban Outfitters customer is, and I'd love you to elaborate on that because I have felt some confusion in the past.

大家好。祝賀一切。謝謝。以及事情進展如何。我有兩個簡單的問題。第一，Shea，我很高興聽到你說你確切地了解 Urban Outfitters 的客戶是誰，我希望你能詳細說明這一點，因為我過去感到有些困惑。

And then for either Frank or Melanie, it seems like this mid-single-digit investment in marketing is really helping across all brands, and I'm wondering if that level of spending will be maintained going forward. Thank you all so much, and happy Thanksgiving.

然後，對於弗蘭克或梅蘭妮來說，這種中個位數的行銷投資似乎確實對所有品牌都有幫助，我想知道這種支出水平是否會繼續保持下去。非常感謝大家，祝感恩節快樂。

Hi, it's Shea. Thanks for the question. Yes, the team has been really laser-focused on understanding and gaining a deep and intuitive perspective on our customer. We've established that Urban Outfitters customers are young people that are coming of age, roughly from the ages of 16 to 26 or 28, and we've identified three segments, those that are pre-college, during college, and post-college.

嗨，我是謝伊。謝謝你的提問。是的，該團隊確實非常專注於理解我們的客戶並獲得深入而直觀的視角。我們已經確定 Urban Outfitters 的客戶是即將成年的年輕人，年齡大致在 16 歲到 26 歲或 28 歲之間，我們確定了三個細分市場：大學預科、大學期間和大學畢業後。

And I think what's different for us now is that we aspire to be a much more welcoming brand. Our name sort of indicates that we serve urban customers, and I think we recognize that young people are all across this country in suburban and urban communities.

我認為現在我們的不同之處在於我們渴望成為一個更受歡迎的品牌。我們的名字有點表明我們為城市客戶服務，我認為我們認識到年輕人遍布全國各地的郊區和城市社區。

And so I think we aspire to be a bit more welcoming and broaden our reach a bit, but I would say we're really focused on that younger consumer just before, during, and after college.

因此，我認為我們渴望變得更受歡迎，並擴大我們的影響範圍，但我想說，我們真正關注的是大學之前、期間和之後的年輕消費者。

And, Jen, just to answer your second question, based on our plans, we think that Q4 SG&A would grow at a rate in line with our sales growth or about mid-single-digit growth.

Jen，回答你的第二個問題，根據我們的計劃，我們認為第四季度的 SG&A 將按照我們的銷售成長或大約中個位數成長的速度成長。

Ike Boruchow, Wells Fargo Securities.

艾克·博魯喬（Ike Boruchow），富國銀行證券公司。

Hey, thanks for taking the question. On Nuuly, I guess the profitability on operating margin is clearly there. Curious if you could comment on the cash flows of the business, if it's a positive for the cash business at this point, or if you need more scale.

嘿，謝謝你提出問題。在 Nuuly 上，我想營業利潤率的獲利能力是顯而易見的。很好奇您是否可以評論業務的現金流，目前這對現金業務是否有利，或者您需要更大的規模。

And then just to frame the UO gross margin clearly now starting to move in the right direction, is there any way, I don't know, Frank or Melanie, if you're able to get back to historic norms, what does that mean to the corporate gross margin? How many hundreds of basis points or how many basis points would that be to help the total company if you were able to get that improvement to flow through? Thank you.

然後，為了明確 UO 毛利率現在開始朝著正確的方向發展，我不知道，弗蘭克或梅蘭妮，有什麼辦法可以恢復到歷史正常水平，這意味著什麼對企業毛利率有影響嗎？如果您能夠實現這項改進，那麼需要多少個基點或多少個基點才能幫助整個公司？謝謝。

Thanks for the question, Ike. In terms of cash flow, yeah, we are not yet cash flow positive as a company. The interesting thing about our business is that we would be cash flow positive if we had no growth and we were not buying inventory for future growth.

謝謝你的提問，艾克。就現金流而言，是的，作為一家公司，我們的現金流還不是正值。我們業務的有趣之處在於，如果我們沒有成長並且我們不為未來成長購買庫存，我們的現金流將會是正值。

But because we have to buy inventory ahead of future subscriber growth, that is what causes us to still not be cash flow positive. So it's an interesting dynamic that we deal with in the rental business that's not dealt with as much in the retail business, which we've been learning.

但由於我們必須在未來用戶成長之前購買庫存，這就是導致我們現金流仍然不為正的原因。因此，我們在租賃業務中處理的是一個有趣的動態，而在零售業務中處理得較少，這是我們一直在學習的。

But all that being said, we are encouraged and excited about the progress we're making on cash flow positivity, and we think there's a potential that we can be there next year. So it's very much in our line of sight, and at some point in the near future, we're not exactly sure when, but we are nearing it.

但話雖如此，我們對我們在現金流積極性方面取得的進展感到鼓舞和興奮，我們認為明年我們有潛力實現這一目標。所以它就在我們的視線範圍內，在不久的將來的某個時刻，我們不確定什麼時候，但我們正在接近它。

And on your last question, while the team has done a great job in the third quarter, the Urban Outfitters team that is driving MMU rate improvement and knocking on wood, we think they can continue to do so in the fourth quarter. I want to recognize that we realize that the job's not done yet.

關於你的最後一個問題，雖然團隊在第三季度做得很好，但 Urban Outfitters 團隊正在推動 MMU 率的提高並取得進展，我們認為他們可以在第四季度繼續這樣做。我想承認我們意識到工作還沒完成。

There's still more meat left on the bone for the brand to continue to drive MMU improvement throughout next year and then hopefully begin to hit positive sales and start to leverage off on the fixed expenses.

該品牌還有更多的餘地，可以在明年繼續推動 MMU 的改進，然後預計開始實現正銷售並開始利用固定費用。

So there's still opportunity left for MMU going into next year. And then, as we said in the second, the term of profitability will be a top-line sale.

因此，MMU 明年仍有機會。然後，正如我們在第二部分所說，獲利期限將是頂線銷售。

Okay. I guess that concludes the call today. Thank you all for joining. Have a very, very, very happy Thanksgiving.

好的。我想今天的電話會議就到此結束了。感謝大家的加入。感恩節過得非常、非常、非常快樂。

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。