Urban Outfitters (URBN) 21 May 242025 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Urban Outfitters, Inc.

First Quarter Fiscal '25 Earnings Call. [Operator Instructions]. I would now like to turn the call over to Onna McCullough, Executive Director of Investor Relations.

You may begin

to First welcome Conference Fiscal and Call. afternoon, the Quarter URBN XXXX Good the press ending issued financial this company Earlier afternoon, a results the XXXX. and for release X-month XX, period April operating the outlining

following may materially results may that statements. differ forward-looking Please from statements. The note discussions actual those include

Additional Exchange in to filings the materially information with could Commission. projected from the results factors actual that and company's results concerning Securities cause differ is contained

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

Following that, your we will address be pleased questions. to

note, these Please does posted www.urbn.com. results not be Relations is press our items charges. store well to which on adjustments Investor website nonrecurring at our impairment for onetime detailed the is in today, financial that will as investor we presentation include closure to release basis, of an as URBN effect adjusted our and speaking The

call I the will now turn Dick. over to

in-depth thank joining and Frank some of updates Good that, Urban make discuss regarding give afternoon, call results, Thank my of today. and then our brand some quick to all I'll our you the everyone, customers. a on and you, year. review the introduction, In our call remarks results more the Mel After I'll our thoughts over on for remainder mood our Onna. of and for turn the the

our revenues all our growth. FP expectations. People, income. Put simply, double-digit and Nuuly Anthropologie, operating of URBN's record first results and brands first posted The X quarter Movement topped brands and revenue X posted outstanding X were record produced quarter Free

and capabilities our take North best-in-class in process Outfitters in media. differently more X investing how continued and robust brands at changes has more than strategy Combined, the lowering accessories in several additional These America, Urban product market breed brands capturing the the changing the react goods their of includes new are This team operates. share in advantage and some level. categories, by make begun women's At senior speed-to-market brand the the social brand to and to prices home softness marketing Urban offset in executing brand. delighting a including initiating a customers, more and

been but At team a from and quarter May, information brand surveys, Small encouraging. in new began the reaction have the the same based of has history. customer registered trending the time, on fashion groups comps the sure, strategy more changes delivered customers to Both to and focus end wins the gleaned these categories Toward and digital for in right home weeks. few last accessory we've women's direction. and positive the into

assured about commentary, more more share Urban #X profitability returning Rest brand and our about brand to and call Shea they're on in speak the will priority. August. the customer Urban Sheila the will growing and in our their review remains strategic Frank his base

Turning the customers now at all to health the of brands.

new fashion year. strongly online shape, that our than traffic group, a stores their job than are we offerings in currently incomes purchases solid are positive, and slightly security considered and inflation. believe more still excited and They faster enjoying good but are are remains As both slightly last rising they by in

than it's more classify versus because year healthier mood new the last as believe rather would I customer Overall, this is this enthusiastic We mood sustainable. exuberant.

over call Frank. to that, with Now I'll turn the

will followed results quarter company everyone. year, our discuss Thank prior detailed versus notes by first and brand. total good Today, you, some the more I Dick, by afternoon,

our record continue record well, and our sales. discussed quarter ahead performed X by first quarter posting X exceptionally billion of to to on X% brands quarter As grew the of Dick of the expectations URBN Total fourth QX first call. noted, as sales a perform $X.X

Anthropologie, The by at the part in of comp prior growth Nuuly subscribers offsetting double-digit X%. XX% FP Movement double-digit increase People double-digit retail negative Free segment due delivered year. revenue Urban versus Our sales driven brand. the than growth, all was in the comp growth to a Retail more and Outfitters a produced brands comp also segment robust

by increased segment wholesale revenue the by X% People. at price Additionally, and sales regular in increase an driven Free the

solidly in total far brands. trends positive So May, company X X have of remained and for our

is range. the quarter Although the Retail comparison low single-digit in second comps segment believe from the year prior difficult, grow could we

revenue wholesale segment increase in could retail robust from segment in revenue growth QX comps, Positive single-digit the result total URBN growth a Nuuly combined mid-single-digit with and in sales.

and million, XX.X%. Moving dollars, our closure rate excluding onetime XX% on gross basis $X.X impairment profit. adjusted $XXX the store URBN to to XXX totaling profit while increased gross increased profit to points charges by Adjusted gross million,

adjusted in improvement at at to by primarily to the inventory. increased all a partially improvements margins rate through was brand gross These brands. initial discounts to due markdown profit Urban move incremental as continues The were offset rate Outfitters need higher

in logistics and onetime expenses opening inventory center. due in related of and to the also Nuuly subscribers our transition second into deleverage to We part fulfillment experienced

Now moving on to SG&A expenses.

comparable the to XX brand deleveraged was Urban SG&A For the increased The the basis and Outfitters versus decline. sales not able same being points. as at XX% reduce deleverage quarter quarter, SG&A rate prior to by the due primarily

spending double-digit to call, was Outfitters expenses previous not did prudent reduce we Urban in As reduce The did to brands. in Nuuly at sales. FP noted we Anthropologie, the due the total People, at and marketing the we of supporting brand Free SG&A increased rate company our at SG&A while QX, expense Movement it same believe on sales largely our spend, growth increase was

growth, delivered brands customer also deliver only brands growth. not double-digit important each is It note, double-digit sales these to these of did

versus or onetime impairment jumped to earnings closure share. URBN last year and adjusted million million diluted store adjusted and the $XX charges, excluding to income, per increased XX% $XX operating Total XX% $X.XX

consecutive Positive both driven by Retail double-digit of and revenue the delivered brand, fifth team were QX XX% comp quarter the growth and with starting comp strong will XX%, in digital -- recording I growth. provide growth store in channels. The and more by Anthropologie. now a details segment double-digit Anthropologie total of comps

broad-based category, positive across Strength strength offset delivered partially Retail was these double-digit shoes,and growth By decline with some there in categories. categories apparel, outsized by furniture the where the remains negative. apparel, categories in comps casual accessories in of a is quarter. nicely more segment Home in Within

engaging and of execute Within entertaining nicely The category Home, is the customers. homes. refresh strategic customers driven their investing initiative well acquiring positive and team gift by consumers to on to categories decorative continues their in new further existing Anthropologie exceptionally

new marketing increases stores in by and creative double-digit investments, make American increased double-digit outstanding the versus over prior During brand which quarter. active traffic drove North The during digital traffic the the quarter, both to strategic supported by and customers continues increase XX% year. content

the quarter. Impressive margin operating expansion coupled sales with expenses, first growth and well-managed brand dollars healthy for profit record drove

enter we and Anthropologie the remains categories. the positively to As of optimistic to continues quarter, range consumer a second respond broad

XXXX. comp the fiscal We can year deliver mid-single-digit brand growth for believe continue to

I channels. Next, comps call store and your double-digit XX% Once an driven gain. Free outstanding The Retail again, impressive comp team digital was will with comp People People. Retail segment attention both the segment in Free an achieving the to quarter, produced growth by

across achieved During the apparel double-digit movement. growth strong the brand and quarter,

top delivered Record delivered strong summer quarter, profit segment Customer operating to sales another record People brand brand single-digit We believe strong XX% the response on dollars. from FP achieving to comp could helped deliver first last year. growth. share. brand and gain strong, the trends continues Free The and comp high quarter a retail comp has the unbelievably the improved of QX margins been Movement XX% market brand

in sales full segment X% quarter. offset the led Movement price Wholesale gains in to by sales channel. quarter, driven brand during People intentional in closeout with Free specialty strong growth decline stores, The the partially an way the increased sales sales department and The FP the by

year improved last be sales inventory to could deliver profitability believe elevated from prior the year, while to reduce the sales the Wholesale slightly when brand had QX closeout improved significantly versus continue Segment levels. positive. segment We could profitability channel

Now to with was was in segment largely with the line a and Urban on North brand. recorded decline both February. in when Europe. we result quarter. UO's comp XX% performance in expectations moving you disappointing Outfitters our comp This negative a America Retail of Urban Outfitters the in spoke

and driven categories the product by Global comp double-digit digital all and declines channels declines Retail negative. were store segment were in both

joined know, spent North in on first This strategic priorities their the As forward. assessing much health quarter new the brand team of of America going and aligning in February. the leadership you business the

You will the more from hear August on team this call.

women's in have price a on categories, channel. North sales Month the continued month comp total home delivered in trend which fueled This in have improvement to more date, store been America shown channel in the North early brand positive basis improvement, accessories and trends has sales and May. by in the of April the and than both part America in digital of signs that so regular

the Women's the brand clearing same and looks season. pricing for improvements. not out architecture apparel the and have categories. back-to-school fresh Therefore, quarter, these plans important cleaning the on moving updated slower during Men's way the shown for inventory in second

likely the sales opportunity the the price These in give brand improved of and believe year. result show current an in will the margins but in markdown we will second elevated quarter, adjustments back regular levels to product half

brand growth adjustments time to digital total a and on been community first for the channels, huge in brand. the distribution have and the resulted for Marketing their have quite new is that strategies time. some in some The focus conversations also recent of in content customers encouraged channel

improvements by comp in only improvements representing product improvement with over believe back half past followed encouraging but right that seen gradual as second in and sales We deliver could margin sales direction. few further for early, the are year. in the teams very the improvements the of are progresses, the results the brand heading the are in These comp weeks, quarter, year sales and brand the

active on business, the over quarter quarter. for touch with over quarter, active subscribers added will versus the average fourth quarter. Nuuly delivered I and which over Finally, Nuuly subscribers subscribers another XXX,XXX active XX,XXX ending XXX,XXX the exceptional the

during As million early continued count and milestone. Historically, the most subscriber subscribers third Nuuly we significant counts noted, experiences subscriber in over growth the the quarters. in strong seasonally first now is growth active in and May today Strong have X.XX

facility the subscriber transitioning support quarter, by to our growth brand's second first capacity. total facility Raymore, in Missouri. the tripling future will team During This began the

from plan to ramp year. subscribers to today, are subscribers which the served we facility, of half of being XX% of back the in As the XX,XXX total over

of on our delivery and proximity. deliver the lower growth certain customers facility lease brand outsized new enables cost supports new a to to us faster the with geographical The based

nonrecurring the led some to will fourth this in abate quarter the which transition incremental on quarter. discussed As and costs in second logistics, call, but continue

Nuuly the have been quarter. would the these Excluding profitable brand first expenses, in

second year fiscal XXXX. year for We be deliver on profitable profit basis believe small full and quarter will the could a the for brand a

I to for Melanie over you our Thank Financial time. call your the turn will Officer. Marein-Efron, Chief now

afternoon, everyone. good and Frank, Thank you,

discuss Now thoughts will quarter performance. the second I . our on financial

are total we quarter. and strength that that mid-single consumer remained pleased the to has overall the Right start strong to believe company for second continue now, quarter demand this We planning second quarter, growth digits. sales could be we're throughout

QX sales. Sales Retail [ low could single-digit growth in up segment Wholesale growth ] in and go comp from

believe segment we the mid-double could digits. addition, Lease In New growth sales be

on to quarter. the prior gross by quarter margin URBN's believe decline margin. the basis We Now approximately year gross for second second compared could profit XX to rate points

weakness While brand. to the and Urban to we improved Outfitters believe Anthropologie margins can those we initial improvements at People, are continued Free at see unable product continue offset the

sales URBN gross in negative well growth improvement our compared to believe year depressed to margin the performance. product and profit XX occupancy plan of basis brand approximately year, the as could Urban points half the The at due as back to because be prior to gross reduction We of gross delivering the do of return deleverage primarily full in margin year. can margins Outfitters profit of XXX margin

will Now on SG&A sales high to growth the single we SG&A quarter the increase our second plan, on Based expenses. performance and digits. current for in moving believe

but relates Nuuly. The planned could sales in in by FP brand, customers primarily higher rate Urban marketing at be in Movement not primarily support SG&A growth at where the we to sales decline. SG&A expenses, Our deleverage expenses of reduced the and and growth have Outfitters Anthropologie, to driven People, Free

will growth in growth closely -- year sales growth. the SG&A believe outpace more believe also sales second be in could and SG&A the with we half that expense aligned we growth While QX, of

spending variable As depending can that how on maintain if a performance level certain we we is of performing. and business up our SG&A sales always, down adjust fluctuates,

the for are XX.X% to planning We effective second XX% our rate currently approximately tax for full year. and quarter be the

turns be and quarter The focused approximately Capital moving on year speeding inventory at on are planned rate the of at We million. $XXX for to to supply. inventory believe levels up managing fiscal Now inventory. that in below could second continue grow weeks teams sales to a growth. fewer the expenditures

follows: is and is the logistics is Fulfillment related opened capital expansion down The home be in store including operations. quarter, which supporting to approximately capital as spend office our project retail related Nuuly XX% support, Rental broken FY logistics Raymore, investments, to remaining Missouri, 'XX the and in would first XX% investments approximately Center normal IT, and XX% the capacity

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

new net is by Our Movement, FP store driven Free growth People in Anthropologie stores. being and growth

During fiscal Free opening People XX year stores. XX and 'XX, on XX Anthropologie we stores, FP stores plan Movement

As obligation a views. our not reflection to of simply a company forward-looking but does is reminder, constitute update statements. foregoing the forecast any disclaims a current The

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

Mel. you, Thank

co-presidents, questions, service associates design over turning for teams the our and Before call leaders brand and their thank I all wish shared to and worldwide. the your

product are direct determination hard outstanding results of Our and your creativity, QX a work.

thank you. support. around our . Thanks And contributions our concludes world. to our our finally, That remarks. to We your also the prepared So partners your significant continued for success. many shareholders to thanks appreciate

for questions. your Now

Instructions]. Thank you. [Operator

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

is Congratulations. directed for you. this Dick, question

to I over sort about trend. of big the think uniquely speak kind going the call shift, silhouette big from to I over little what the qualified you're little the of

know And biggest to a seems guess, the are different I for seeing where trend want the uptake sort at this confidence you Outfitters. of such Urban in I brands?

that of you're chase to And categories what in clearly trends going the some have So key exiting? you into July? you identified are

Well, XXXX a that big. point there let that. in a in to overall, tell I silhouette about over a would group think would the say or little I you, was Urban talk I we started the view, from silhouette about But switch of 'XX this talking

adoption People few the established might me silhouette customer in And But of I a little in brands. talk firmly I let would seeing what their right say that of in -- you seeing Anthro who they're reversal. but people or in now. I And next only Free think in about not midpoint would in me mass. a hints years talk to let say we're it's want our group, about that see the start

Adrienne, Shea. start. it's can I

I I your question are things And think describe think, the X biggest into? definitely is it, seeing that. of silhouette, as chasing we're new I would being happening what the we in to brand, proportionality and was

a exciting I actually focused would of long to big or the on mix see whether to here able really gift just say speed we as to opportunity stuff. it's have the that's proportionality, or the chase leverage little that been big really And to real market, little which into we're both. we're is on

Yes.

bottoms The I like full results wide kind of of really pretty some driving is Tricia. think, adoption of Anthropologie. range significant for it's a Adrienne.

down Anthropologie and to has trends chase those and The exciting bottoms, continuing think, range significantly really we within go a forward. in I way, silhouettes the of changed but we're also proportion, pretty as

want about say anything Free to People. You

left Yes. [indiscernible] People Free out.

leave going believe Free not to People out, We're me. no. No,

Yes.

the trend. them months. Free People this been embracing They brand like I it. of it's fun been to and the this over think quite see maximize several past sort has

are it what's to excited We testing start next.

to ahead of stay game. So the

Okay. Thanks. Thank you, Adrienne.

Thank you.

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

the you've trends the banners just So you quarter? Dick, fashion first supporting relative on elaborate for maybe more you seen demand robust quarter. cited across May recent second Could spring/summer in to

into across half inventory you've just your And you margin expansion. place? Outfitters then confidence what that as Urban in Melanie, at the you back actions just merchandise What seeing? are And on brand, the categories, are look put

QX than segment so It's May. performance in just comp difference biggest Okay. in softer far People were the our for Free slightly the Matt, Retail brand. period. QX the

QX posting consistent positive currently X across ultra call XX% Free is X-year comps. if because People would last is anniversary-ing Free And mid-single-digit the on from at year. look remain very positive you comps this they're it stack, But an quarters. I a People what comp

were brand, should Now negative the with about comps, at comps Retail both QX a segment and I in [indiscernible]. be Urban X%. the as segment Frank improving for Urban to, comp where guess. better our single-digit somewhat to they we team we're Retail think at That's that best Overall, QX from alluded high experiencing related brand

Melanie. Matt, wanted inventory just is And cover question. then this your I to

really improved So at segment of growth X% -- with and X% And much a segment, growth position down X% and down sales inventory sales Retail URBN sales -- on our line basis, a with and X% of year. below in wholesale last up X%. in and our we're total inventory inventories levels business in total versus or by Retail inventory are growth just segment

Your spring clean inventory as half negative Urban us we And a selling that we on improved at XX% that, back in produce And down all-important comp. Retail quarter the question will margins cleaner to this at allow the enter order the believe of segment back-to-school is are as exit inventory about XX% planning to in take to in Urban additional and point, Outfitters, the ensure inventory mentioned, we markdowns Frank for summer the seasons. year. we all and the is the

to to opportunity I to of still Matt, it that get opportunity their to markdown inventory a the the selling all and have into back-to-school to holiday that, rate continued And think we Urban then Outfitters relates the year. able significant season as ratio. better IMU to back to they due just being as And sales relates for as half brand, it have lower brands add

today. confident to we're I to what gross XX, thinking second margin Obviously, we're full -- it's profit XX to think is for we're about basis feel we the in is work very points. on year so that, And or but quarter do only expansion today enhance to of May which the XXX very going that what some of going guiding still the confident why

you. Thank

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

guess could your on there? This the Z UO that some that's thoughts your of if is Kelly elaborate on pricing just And prior different just than I bit. thoughts texture, brand on you some for elaborate Paul. you customer? could to initial the a present of on if you any How we playbook, how mentioned changing Gen

on guidance. And gross margin just the then

of of what offsetting plan? an So we first, should versus to markdowns in in other much margin the the drivers impact of XQ? upside UO some drove And expect the XQ, at how be gross

Kelly, respond to let and gross Z Gen I brand the then the the take profit Urban margin can customer.

the So, we a exceeded line little we thought were than deliver. in first obviously, going to we top quarter, what bit more

So that Nuuly some at helped than of what bit I transitory gross would say came little expenses were the profit in anticipating. a margin. logistics also lower we

So gross better quarter. contributing in first the all to of that margin profit

really we to starting growth. was to in multiple positive, we're that IMU it think please As second relates the going be quarter, IMU anniversary of strong really now years to still keep a but mind

improvement start abate each IMU quarter the the will So as progresses from now to on. year

profit And the the the through half out women's aging that by driven to is for decline order deliver them markdowns really of the back believing currently we're heading second that Urban being the that cleaner in quarter and season the just then holiday into those inventory in elevated leaving overall men's gross we're margin and to important the brand just much of clear going year. having Outfitters back-to-school some and

question? to want do take you urban Shea, the

positioning some if efforts have been the and question that been asking I as some position. about of we've correctly, Sure. that underway understand Kelly, brand reviewing your you're

customers. First who start with firm we needs and a understanding foremost, of are everything to do that

a at purchase but lifestyle current have with with who we've drivers research, conducting lot. We've our looked with shopping those attributes aren't like we occasions. and us, things detractors, and both been pretty and customers So learned extensive customers, also

particularly is stands customers thing X the evolve change and have and pace pretty for of and rapid, quickly. think I we clear, keep that pace And is out fairly these to

for earlier, right as Dick goals And there's X so now. us heard you mention primary

base, profitability. restoring and to customer rebuild second, need customer that our we First, to we need rebuild base;

attack And see already indicators. so and we identified spirit started early to really that it's have some we've that in areas that X

architecture example. pricing want opening some [ the of First, and And customers, in and value elasticity, price ] that's Sniff really, matters. being as accessibility area early in price accessory where seen certain to you about our even the leveraging we've price particularly of some like apparel mentioned, but , very and great mindful that we categories offer in is areas wins for price the our

been where then secondly platforms some early across And really see their and we wins that, is it's again efforts on lives. customers indicators been living customer. are And to very exciting to serve customers. have And these to amplifying know some good how just reach these our we really really we've led that there social

you. Thank

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

on Follow-up gross margin.

plus the initially given basis QX a year. bit perhaps than You're It like the bit QX sounds than XX planned. come to thought, the seemed for reiterating in a you to lower better XXX markdowns. points aggressive more

$XXX So high guess, confidence $XX million. to the that maybe speak of the putting level to in million end of I end low your together, that versus

growth And to overall return breakeven? Could just then mid-single revenue just to of breakeven? back to some those year. you markdown path you do cycling to you some get need I speak heavier to margins digit back there? get the separately, UO, level negative were Can you Or to of think last

Sure. I take can that.

So second We basis feels feel very to away, obviously, is points. comfortable the XX Mark, half XXX I right think now, the it far we like. with feel

visibility with significant a to of by opportunity brand. followed the Urban which have for healthy Outfitters think I pretty continued amount rate IMU the improvement, markdown we really

I plan end think think today, the that. I of we comfortable that we on feel feel very high comfortable and with

can lot between sit now Obviously, where and a but holiday, today. we that's change

line The biggest the get markdown and for improve top price on reg Outfitters are. is feel focus with those we opportunity rate, going. comfortable that think certainly where I to pretty Urban numbers then

there. inventory we and elevated a they're last year QX improved markdown to improvement on really provide nice just solely significantly for having against of the that rates should healthy sales in But up QX think based ratio

you. Thank

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

you for was like comps This comment that about think just high wanted negative on Alex. you I do Urban attribute circle I is back Delahunt the the it What to digits. on to improvement made trending, brands to? Katie to-date single

What throughout -- time we said previously then the I at And should further the taking Urban. year? it could because promotions back-to-school we you're in think a when could expect see had be select further of is that categories? improvement you inflection

Yes, I'm digit? not very sure well, you Outfitters, we Katie. say it. were Urban double understood they positive did

We consumers, QX the said we having a growth were a new felt consumers like digital which to brand, positive on our momentum forward execution. from

that what getting all So us -- back customer it's about. our Katie,

early business. UO So that's the we're within experiencing what the currently digital

And of I the combination U.S. some is team in that efforts promotions strategic think a with it's the making along of Shea's social

nice our and throughout momentum We also on we like feel based some summer their quite being seeing the they recovery reactions strong. quarter the growth are and might European spring accelerate to business, within

have the today. we stand some So strong positive EU momentum as in we business

you. Thank

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

think just own in really X of of I'd the been Anthropologie And talk have practice. there. owned what the consistency out nice while some seen Trish, like could success. most Anthro, as I quite specifically, of coming I've see you've the successful digging to years brands well. your a growth. I bit, daily I had like all with be a following I've to brands, on which at Congrats you little And And in had

sort the market? on little could a how brands? you more in a trends allowing they using about bit own quickly the other you're the stores that have talk of base Are to kind you pick could a in of up If you little

in so And influencers affiliate that base then X is it. question And are And younger in killing if TikTok on bring there the people a are on your younger you're situation helping and so to customer of quick curious your It's it's if there's many business? unhinged. impact some just having about good. there, that an and bringing is customers this I'm

Yes I'll for start Marni, question. customer thank you with the piece. the

customers, at but new and and customers really in doing customers quarter younger and TikTok. younger teams acquiring are job significantly definitely of acquiring first age really great also on that the mentioned, concerted from come grew customers customers Frank really a that average effort engaging As as and acquiring particularly new you by down our our a new XX%, -- new has platforms, our pretty social referenced, in are come

I are repeat as mentioned, by that really most think active focused our are Frank is retention me our purchases, XX% on and team well. working improving that's and customers and exciting as rates to growing very

From for perspective, comments brands. a our product own your about you thank

Our that. team and has within been modernizing has really expanding the apparel on assortment been and working driver our product really, hard really

month Pilcro brands our way after think would category, I top search just and grown into and say, particularly, put ton month. Anthropologie denim Most in the display the we are the effort brand way about, brands has the the branded our of stores been really a significantly, there's the design, we Pilcro and and Mave

some expand owes an Dick about well. brand really, as lifestyle brand particular, incredibly new going well Practice other categories, And them emerging we've and in the thinking the is Daily introduced. So the I we're mentioned, that's out. They that Daily had in as the as seek them. of stores, active footprint to customer Practice think, how

X the in we month of well. by footprint So increased in stores almost we brands that it's of the XX% February, proving those tested and remarkably

XX that footprint. have we able to stores to up So be lined expand

never own and So up just profit has [indiscernible]. fashion the our offer penetration brand our is serving are higher. brands The overall, been that our mix proud are and the total teams but of on mostly producing those brand incredible, own that

Thank you.

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

of your top for As you brand? think how we about remainder line. versus of the differ? What's are marketing spend, through go some the it expectation which allocating marketing to year? obviously does And spend is What drive the helping you as the

expectations? what the full you then to How up significantly. there? note terms performing lastly, wholesale you your do is was And What trends income promotion price? on did and there in just versus And that operating sell-through see order Europe, in relative of

Dana.

I'll And Let or Europe first. Mel the maybe, about Frank then will about me spend. talk talk marketing

Urban recently, were versus the of they're brand single year. showing and digit very now mentioned, up out As of negative points in I Europe QX some percentage revival in last until flat, signs high a couple they is was think posted kicked

at to Anthropologie they and strong and the Free other in in quite When we look They in strong. book gains brands, QX. were Europe People continue sales QX, comp are

they've excited. pleasantly Urban as you year we're to.. Mel, are we given very going problems we surprised. about would Actually, we're but all want this very think So into optimistic not the had,

are. allocated on So brands is the growing where marketing based generally spend

quarter, that's has why Nuuly the brand. about the FP movement really People Anthropologie, So marketing we've in growth talked the come that first the in from and fact Free

brands. will our growing allocation to work So toward continue the

As we the of though, of the may through the the our I sales But be allocation the growth in of half year to similar. half closer is versus year. back rate the go do growth year, first think

you. Thank

line Our next of Boruchow Wells the Ike question comes from with Fargo.

To UO. to go back

margin either make or of the a guys earlier, just how It guess the point double you to when Mark's sense that the question leach would in look the at do material to negative have having last geographies? changes my level, issues on digits . I So more base still to negative higher side. is a store is comp maybe -- digit long year. brand the mid-single sorry, and on the promo you

of of are rightsize there? what are kind of just Just at kind goalposts to you -- to something trying structure the I looking how margin understand the guys the business.

Okay.

as X review we that that with we over the -- were decisions engaged making quarter in And think broad. fairly speak. I is last about that some strategic a a we've or said

But not depth. it think talk in I about ready to we're

be we of stores definitely the our We are turn We thoughts issues, able the times, seeing call are, to are are will couple now signs the There know that. around. that on has as been too some ship some mentioned positive of some a and large.

And is we said as earlier, more of spend reflect change we the have our the to where social accurately some showing media to up. on up customer

you call. you it review in the a now. going this would thorough more about to that of give are of anything engaged to in So those August on right than like things we're Shea, we're the types were other say

Yes.

quarter first appropriate allow decisions year. cleaning more the anticipate of first hopefully though, and that we would I bring And more we sales customer, to, markdown is closer educated inventory. do the the half perspective back adjustments to those up acknowledge, perpetuate second just the clean that think as enter inventory us inventories, I we will better the step buying to but and our really as foremost, but will decisions into

of think profitability. definitely We said, in terms now on working And with and research August as through back as the insights, is those Dick we will big in the we're that unlock a things. more detail come that then

foremost, and first them on, secondly, react focused entirely a we customer and we're that line. now, and inventory our our can right to understanding in getting position But the closer

Thank you.

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

wanted great quarter. a I to. on Congrats

Thanks Jen.

the comps turned. Shea, to what's sir. confidence apparel transient that giving turning. I welcome wanted base. have the Europe the if you is for You're in just And touch plan that UOl trends brand's -- And Europe sounds like it the can I'm is to in transition It wondering, U.S.? the feasible is to

I but wrong think could that of second on turning positive, said the the for year. half I you be

clarification second on If Anthropologie. mid-single the the Anthro and has for at have current misinterpreted may comps did outlook that. that a the digits up And of point they're on Are that quarter you I now I I right then just apologize. suggesting

we Tricia. Anthropologie. with at is optimistic enter QX Anthropologie. start cautiously this as Janet, I'll We're

fairly as where QX are mentioned aligned is Mother's we high Anthropologie Mother's with dress Dick that But Day, sales. our first Day. record brand's May weeks fun of week leading X the some for for delivered very our think think prepare I weeks headlines are performance we into comps And as a was. important I brand our

one say again. that You to want

we dress up We to a volume as leading Mother's in week week had in a brand. ever Day than the did more

So really optimistic that we optimistic trends about as in growing into as we've events weather some has got warmed, leaning the nice we're cautiously Mother's Day, business. like are

Urban Sheila. is take this to I'm going So the question.

believes Just to to comp reiterate, brand sales. going change the in it's a be gradual

the of we're sales. because profitability So on focused really the

to to inventory clean the So our able consumer. and get we be to to react continue want

happening but sharing the positioned constantly because think our U.S. so in than very consumer, on We slightly and their Europe, them more are with U.S. we closely hand-in-hand customers differently speed information. seeing work are probably that they more than are

aggressive. want I to a change, slow sales it's just So gradual not and reiterate,

think, than probably from in Outfitters have the Janet, I about Urban borrowing North if American And the of They Yes. fashion more the group have they I could, in been Europe. ever past.

that difference be right looks And major to them particularly, seems for and feminine change now. working more into the what or major the think they've gone I they've well experienced is that the would I very call

than they is I and higher those American North that in of America, European in now penetration think those the probably a the looks, but looks well, have there's business there We, same in business. performing right are North

comes Jay next -- last line you. question our Sole Thank the from with UBS. of

elaborate Nuuly. just little you on a if can I'm bit wondering

you've you the maybe that trending days learned talk days, that would XX that the sales where trend profitability, super you were last see in how be ago Just helpful. us about versus to XX

take that? Dave, you do to want

that quarter question, probably growth, lot Thanks we've of than that platform saw tremendous not would first our the sure. first would for more our joined us. was already. to I the amount the facility. mentioned . From a City Yes, I guess quarter. start subscribers Frank saying transition first a We Kansas the for that Jay. we for the standpoint, history. if ever profitable fantastic of call just did quarter time not by new have in a were had subscribers out profitability been for we just We in

the we in just quarter. the May we're growth expecting and we've quarter And this longer saw in term, through and of think profitable the second rest seen excited about be I very actually to the year. continue first what

time very a just Nuuly. exciting for So

Okay.

forward up you much that, look questions. that and August. to talking the I joining, all thank wraps think you in again I for to very

for that conference Ladies and participation. gentlemen, Thank the call. concludes your you

Everyone, a have You disconnect. now may wonderful day.