Urban Outfitters Inc. (NASDAQ:URBN) Q3 2020 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 05:00 pm ET


Urban Outfitters Inc. (NASDAQ:URBN) Q3 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Urban Outfitters, Inc., Third 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 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 third quarter fiscal 2020 conference call. Earlier this afternoon, the Company issued a press release outlining the financial and operating results for the three and nine-month periods ending October 31, 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 filings with the Securities and Exchange Commission.

On today's call, you will hear from Hillary Super, Global President, Anthropologie Group; Frank Conforti, Chief Financial Officer, URBN; and Richard Hayne, Chief Executive Officer, URBN. Following that, we will be pleased to address your questions. For more detailed commentary on our quarterly performance, and 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 Hillary.

Hillary Super

Thank you, Oona, and good afternoon everyone. I will begin with a review of our third quarter results, followed by early insights into holiday selling and then give an update on some of our longer-term strategic initiatives. Anthropologie Group delivered a positive 4% Retail segment comp, driven by positive comps in women's apparel and continued strength in both accessories and home. Higher full-price comps coupled with fewer category promotions and disciplined expense management resulted in a solid quarter for the brand on both the top and bottom line.

As discussed earlier this year, we fell short in our casual product offer in the spring season. However, I'm pleased to report that we corrected this issue and our customer has responded well to our fall assortment. Full-price comps have been positive across the majority of the apparel classifications, and we were able to achieve this with fewer category promotions in the quarter. This trend began in August with strong performance of casual bottoms, which we featured in our journal, and was buoyed further by exceptional dress performance in the balance of the period.

Accessories continued to outperform, delivering its ninth consecutive quarter of positive comps. The home category also delivered a positive quarter with standout performance in tabletop and home fragrance, where we delivered notable product innovation. Anthropologie has a passionate and loyal customer base and her response to our offering was particularly strong this quarter. We enjoyed growth in total customer counts for the quarter, driven by new and reactivated customers.

Healthy growth in our reactivated customer segment demonstrated that she has noticed the improvements that we have made to the assortment. Improved marketing helped to drive double-digit growth