Urban Outfitters Inc. (NASDAQ:URBN) Q1 2019 Earnings Conference Call - Preliminary Transcript

May 22, 2018 • 05:00 pm ET


Urban Outfitters Inc. (NASDAQ:URBN) Q1 2019 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to the Urban Outfitters, Inc. First Quarter Fiscal 2019 Earnings Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce Oona McCullough, Director of Investor Relations. Ms. McCullough, you may begin.

Oona McCullough

Good afternoon, and welcome to the URBN first quarter fiscal 2019 conference call. Earlier this afternoon, the company issued a press release outlining the financial and operating results for the three months periods ending April 30, 2018. The following discussions may include forward-looking statements. Please note that actual results may differ materially from those statements. Additional information concerning factors that could cause actual results to differ materially from projected results is contained in the company's filings with the Securities and Exchange Commission.

We will begin today's call with Frank Conforti, our Chief Financial Officer, who will provide financial highlights for the quarter. Andrew Carnie and Hillary Super, Co-Brand Presidents of the Anthropologie Group, will provide an update on the Anthropologie brand; Richard Hayne, our Chief Executive Officer will then comment on a broader strategic initiative. Following that we will be pleased to address your questions. As usual, the text of today's conference call will be posted to our corporate website at www.urbn.com. I will now turn the call over to Frank.

Frank Conforti

Thank you, Oona, and good afternoon everyone. I will start my prepared commentary discussing our recently completed fiscal 2019 first quarter results versus the prior comparable quarter. Then, I will share some of our thoughts concerning the remainder of fiscal year 2019. Total Company or URBN sales for the first quarter increased 12% versus the prior year. The increase in sales resulted from a strong 10% URBN Retail segment comp, 13% growth in URBN wholesale sales, and a $17 million increase in non-comp sales.

Foreign currency translation accounted for approximately 160 basis points of total sales growth for the quarter. Within our URBN Retail segment comp, both the digital and store channels delivered positive comps during the quarter. Digital continued to outperform stores posting a double-digit sales increase, driven by increases in average order value, sessions, and conversion rate. For the store channel, this marks the first quarter in four years our store comps have been positive at URBN and each of our brands. Positive comp store sales resulted from increased average unit selling price, which was partially offset by decreased transactions and units per transaction.

Store traffic for the quarter was up slightly versus the prior comparable quarter. By brand, our Retail segment comp was positive at all three brands for the third straight quarter with increases of 15% at Free People, 10% at Anthropologie Group, and 8% at Urban Outfitters. Our URBN Retail segment comp was the strongest in March, which benefitted from the Easter holiday calendar shift, followed by February and then April. If you combine the months of March and April in order to remove the Easter holiday shift and looked at the average of the two, each month in