Q1 2025 Urban Outfitters Inc Earnings Call Transcript
Key Points
- Four out of five brands posted record first-quarter revenues, with Anthropologie, Free People, FP Movement, and Nuuly achieving double-digit revenue growth.
- Total URBN sales grew by 8% to a Q1 record of $1.2 billion, driven by a 5% retail segment comp.
- Nuuly saw a 56% increase in subscribers compared to the prior year, contributing to robust double-digit revenue growth.
- Adjusted gross profit dollars increased by 11% to $413 million, with an adjusted gross profit rate improvement of 106 basis points to 34.4%.
- Anthropologie and Free People brands delivered double-digit customer growth, with new and active customers increasing by over 18% year-over-year.
- Urban Outfitters brand recorded a 14% retail segment comp decline, driven by double-digit declines in both digital and store channels.
- Higher markdown rates at Urban Outfitters were necessary to move through inventory, impacting overall gross profit margins.
- SG&A expenses increased by 11% and deleveraged by 87 basis points, primarily due to the Urban Outfitters brand not reducing SG&A at the same rate as sales declines.
- The Urban Outfitters brand in North America is still undergoing strategic changes and has not yet shown significant improvement in women's and men's apparel categories.
- The company anticipates elevated markdown levels in the second quarter for Urban Outfitters, which could impact short-term profitability.
Good day, ladies and gentlemen, and welcome to the Urban Outfitters Inc. first-quarter fiscal 2025 earnings call. (Operator Instructions)
I would now like to turn the call over to Oona McCullough, Executive Director of Investor Relations. You may begin.
Good afternoon, and welcome to the URBN First Quarter Fiscal 2025 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, 2024. 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 Richard Hayne, Chief Executive Officer of URBN; Frank Conforti, Co-President and COO, URBN; and Melanie
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