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

May 21, 2019 • 05:00 pm ET

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

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Presentation
Operator
Operator

Good day ladies and gentlemen, and welcome to the Urban Outfitters, Inc. First Quarter Fiscal 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder this conference call is being recorded.

I'd now like to introduce the call to Oona McCullough, Director of Investor Relations. Ms. McCullough, you may begin.

Executive
Oona McCullough

Good afternoon, and welcome to the URBN first quarter fiscal 2020 conference call. Earlier this afternoon the company issued a press release outlining the financial and operating results for the three-month period ending April 30, 2019. 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 fillings with the Securities and Exchange Commission.

We will begin today's call with Richard Hayne, our Chief Executive Officer. 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 Dick.

Executive
Richard A. Hayne

Thanks Oona, and good afternoon. Today we're trying a new presentation format for the conference call. It's designed to better communicate with our investors and make our interaction with the analyst community more productive. Under the new format, we released printed commentary on the quarter to our web portal shortly after the markets closed, but prior to the call. This creates an opportunity to read and digest the information before the call.

At the beginning of each call, I will give a brief business overview and then ask a brand leader on a rotating basis to give more color concerning results and initiatives at their brand. Following that, Frank will offer our thoughts on future results. We will then open the call to your questions. As always we welcome feedback and suggestions for improvements. Thank you. And now for my overview.

First I am pleased to announce the addition of a new brand to the URBN portfolio, is called Nuuly. Nuuly is a new way for women to interact with their wardrobe, a monthly subscription service, where subscribers rent their favorite fashion items from the Nuuly offering, which includes products from our own Anthropologie, Free People and Urban Outfitters brands as well as from many other nationally recognized brands. We're very excited about this new approach to accessing fashion. Dave Hayne, the President of Nuuly will discuss the concept in more detail in a moment.

Moving on to URBN's first quarter results. I'm pleased to report the company posted a positive 1% retail segment comp. When we last spoke to you in early March, business had been difficult and total comp sales were solidly negative. But as the weather broke, sales in March recorded a strong rebound. April comp were so nicely positive, although slightly less robust than planned. We expected to see a bigger build in April given the