Urban Outfitters Inc. (NASDAQ:URBN) Q1 2021 Earnings Conference Call - Final Transcript

May 19, 2020 • 05:15 pm ET

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Urban Outfitters Inc. (NASDAQ:URBN) Q1 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. And welcome to the Urban Outfitters Inc. First Quarter Fiscal 2021 Earnings Call. [Operator Instructions] 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.

Executive
Oona McCullough

Good afternoon, and welcome to the URBN first quarter fiscal 2021 conference call. Earlier this afternoon, the Company issued a press release outlining the preliminary financial and operating results for the three-month period ending April 30, 2020. The following discussions may include forward-looking statements. It's important to note at this time, the global COVID-19 pandemic has had and continues to have a significant material impact on URBN's business. Given an extremely high level of uncertainty about the duration and extent of the virus' near and long-term impact to the global retail environment, content discussed on today's call could change materially at any time.

Accordingly, future results could differ materially from historical practices and results or current descriptions, estimates and suggestions. 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 Chief Executive Officer, Richard Hayne; and Chief Financial Officer, Frank Conforti. 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 Dick.

Executive
Richard A. Hayne

Thank you, Oona. And good afternoon everyone. Well, this world certainly has changed since we last spoke. COVID-19 is deeply impacting everyone and everything, including URBN. Our Company entered fiscal '21 with strong, positive momentum across all three brands and product categories.

Apparel sales were especially brisk. For February, URBN recorded a total retail segment comp of plus 11%. Thanks to our highly talented design and merchant teams, our spring/summer assortments were terrific. So we thought we were on our way to delivering outstanding Q1 results. But the virus began spreading from Central China across the globe in early March. As virus cases accelerated, URBN store traffic and sales weakened. First in Milan, then Seattle, then New York. We grew concerned about the safety of our staff and customers. So on March 14, we made the painful decision to close all stores to the public.

With no store sales and our Wholesale division facing dozens of order cancellations, our outstanding quarter quickly became an exercise in crisis management. As noted, our first concern was for the safety of our associates. Besides closing stores, we also directed all associates who could to work from home, encouraged them to maintain recommended distancing, and adopted rigorous cleaning regimes at our offices, stores, and distribution centers. I am pleased to report these, and other measures, greatly reduced the spread of infection within our community.

As