Urban Outfitters, Inc. (NASDAQ:URBN) Q3 2023 Earnings Call Transcript

So that’s one of the parts of the equation. That is not to say that we can’t do more business with fewer units and fewer retail dollars. It’s just to say that, that is a factor that we have to take into consideration.

Operator: Thank you. Please standby for our next question. Our next question comes from the line of Dana Telsey with Telsey Group. Your line is open.

Dana Telsey: Good evening, everyone. Hi Dick, as you think about the channel performance, the difference between stores and digital, how would you highlight each by brand? And then it seemed like intimates was softer in some of the different brands. Is that the casual cozy in favor of the occasion dressing? Or any way you’d frame it in terms of difference in performance by brand? Thank you.

Richard Hayne: Sure, Dana. I’ll do my best, but I’m going to rely on the brand groups to kick me under the table if I say something that isn’t correct. As far as channel differences are concerned, in the Anthropologie brand, they were very similar, actually. And the comps were double-digit in both channels. So that was good. And I’d say that when you look at it by category, what they classify as intimates or loungewear was a little softer than their apparel, but that was largely because they deemphasized that in this year because they’re going out in “apparel” was doing so incredibly well. So they did that on purpose. If I look at the Free People business, the — as I said, I think earlier, the digital business outperformed the store business. And there, I don’t — I think intimates did very well.

Melanie Marein-Efron: It’s improved. Our intimate business has consistently improved every quarter coming off of how to react to the customer from a launch perspective into a more fashion perspective and intimate.

Richard Hayne: Okay. Well, that’s what I would consider very well. So thank you. And actually, in the Urban Outfitters brand, both channels performed similar in that they were both down. But in that particular case, intimates was their best category. So I don’t know what you’re going to draw from all that. But I don’t think there’s a consistent theme there.

Operator: Thank you. Please standby for our next question. Our next question comes from the line of Janet Kloppenburg with JKR. Your line is open.

Janet Kloppenburg: Hi everybody, and congratulations on a continued nice result. I just had a couple of questions on Urban Outfitters. It seems like you’ve got the inventory plan in place and the pricing strategy evolving. What I was wondering about is how you feel about a turn in the business from a merchandising execution standpoint, when will the assortments be positioned the way the team thinks that they should be? And when might we see an inflection there? And how you’re thinking about an inflection there? And then we’ve seen some softness in the upper-end furniture business. And I know Anthropologies have been tracking pretty nicely at least through the third quarter. Maybe you could talk about your outlook there, that would help a lot. Thanks so much.