The following is a summary of the Urban Outfitters, Inc. (URBN) Q1 2025 Earnings Call Transcript:
Financial Performance:
Urban Outfitters reported total Q1 sales growth of 8% to a record $1.2 billion, driven in part by a retail segment comp of 5%.
Adjusted gross profit increased by 11% to $413 million while the gross profit rate increased to 34.4%.
SG&A increased by 11% versus the prior comparable quarter due to increased marketing spending.
Excluding one-time store closure and impairment charges, the company's total operating income grew by 11% to $79 million and adjusted earnings jumped 23% to $66 million or $0.69 per share.
Business Progress:
The company revamped operational strategies for the Urban Outfitters brand in North America, making changes to take advantage of their speed to market capabilities and lowering prices in several product categories.
Investments in social media and adjusted marketing strategies resulted in growth in new and total digital customers.
Due to inventory and sales performance, the company plans to adjust variable SG&A spending.
In the fiscal 2025, the company plans to open 57 new stores while closing 21, primarily FP Movement, Free People, and Anthropologie stores.
The Urban Outfitters brand is focusing on rebuilding its client base and restoring profitability by improving pricing architecture and using social platforms heavily to reach customers.
Anthropologie is working on improving retention rates and repeat purchases.
More details: Urban Outfitters IR
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