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Great. So good morning, everybody, and thank you for joining us. I'm Adrienne Yee, Barclays Specialty Retail Apparel and Footwear Analyst at Barclay's, and it is my pleasure to welcome Frank Conforti, Co-President and Chief Operating Officer of URBN, Trisha Smith, Global Chief Executive Officer of Anthropology Group, and Melanie Moran-Effron, CFO. So I always like to give a tiny little bio for those who are new to the story. Frank, you joined URPN in March of 2007 as Director of Finance, and you've just moved your way up through the career ranks throughout your career there. You were CFO before Melanie, and in 2020 was appointed Chief Operating Officer. Tricia, you joined in the anthropology or URBN in April of 2021 as the Global Chief Executive Officer of Anthropology Group, and prior to that, you had been at Tilly's, and before that, merchandising and many different uh you know functions at 25 years at nordstrom um and then mel you had joined in 2013 and were promoted simultaneously to cfo in 2020 when frank was promoted to coo so the past five years six years since you both had changed jobs and you know since you you came on board have been tremendous success you know successes in terms of the overall business. The business is so different today, and I think I've covered the stock, dare I say, 20 some odd years. I knew you. I was laughing at Trisha's face when you said 25 years. You could have just said, you know, a nice 10 years. But the company, I remember when we had started covering it, was two brands. And it was those two brands, and we were constantly wondering which of them was uptrending, and overall it was very apparel centric and i think today really what the company has transformed into is the very unique business model of a platform and a portfolio of brands it is not easy to manage a portfolio brands all of which are growing um and i Think that that and i and i i think that that has been sort of the the secret sauce here i was looking at stocks kind of like the performance and you're one of the few that's up here today, so that's A-plus there. But also those who are trading within 10% of their 52-week high, and that is an even smaller cohort. And I think that speaks to the fact that you kind of moved outside of maybe a shorter-term, uninvestable philosophy, and you are now on the radar screen of a long-only investable compounder. um so long introduction but um i guess let me start frank we always start we're starting the conference this morning with everybody talking about the macro and the consumer well it's back over 100 or darn near close to it gas is back over four just doesn't seem like you know things are moving necessarily in the right direction for the back half so talk about the health of the U.S. and the European market, sort of beginning of the year to your second quarter, and then how are, as you've seen all the earnings unfold around you, are you seeing any differences in, you know, any of those markets? Yeah, well, thank you for having us, and thank you all for being here on behalf of URBN. You know, as it relates to the macro consumer, you known, obviously we can only speak to our customer, which, you know, if you believe there's a K shape, we're sort of on the top side of the inflection of the vertical of the K. You know, but from a macro perspective, right, employment remains strong. Wages are going up. Yes, there's inflationary pressures. They've been there for some time now. What we see is an incredibly resilient and very healthy consumer. We're seeing, you Know, no price resistance. We are certainly in and have been in a strong fashion trend, the bottoms trend, and silhouettes and fabrications, those types of things have changed, but the bottoms trends has remained strong, and our business has remained strong. I don't think it's very different in Q1 to Q2 than it has been for an even longer period of time for us, in that our consumer has remained incredibly resilient and very healthy, and And like I said, our best gauge of that is being able to look across the strength, as you talked about, the portfolio, look across multiple brands, multiple geographies, and multiple platforms, whether it be stores or digital. We see strength across all of our modes of sales and across all over the brands, and it's regular price that's driving it. It's not a promotional cadence or creative marketing that's driving it. Obviously, marketing is critically important, but I meant marketing from a promotional standpoint. So the consumer, for us, remains in a very healthy position, and we think that's going to continue. We're excited. Great. Mel, I'm going to ask you about the five brands in different stages of growth. so we've got the more mature anthropology we've got a turnaround happening in urban outfitters we've gone through yep we've got newly which is kind of you know next generation all kind of you know platform and then we've got three people brands both of those in you know proven proto you know proven growth modes so either both of you or one of you talk about kind of like the from a financial perspective kind of where we are on the journey and what those margins could look like, and then maybe at a higher level, just how they contribute and work all together. Yeah. Well, why don't we let Tricia lead off with anthropology. We'll go in alphabetical. That's where anthropology is in their journey. Yeah. Throw me a curveball, Frank. Yes, we are really pleased. Thank you for mentioning that, Adrienne. I think with the progress that the brand has made over the last five years, And that's really, I think, come from our strategic priorities that we put into place. And we have an incredibly strong team. Our entire senior executive team has been together for about four and a half years and has been working, you know, on those strategic priorities. So I think we've seen tremendous growth. Our first kind of pillar of our strategy was around introducing our brand to a new generation of customers, and we've seeing 40 percent growth of our customer base. And I think the thing I'm most proud about that with Anthropologie is it was very important for us to make sure that we weren't alienating our existing very, very loyal customer. So we watched very closely every quarter as we're growing new customers that we're still growing our retained and our reactivated customer base. And that's been happening really consistently. So I think that's probably the thing that our team has been the most focused on and then made tremendous progress in product. So we've really built up our design, our buying, our production teams. And, you know, our own brands are now growing to, you know, north of 70% of our apparel business. We've launched three new brands. And so I think kind of the combination of really focusing on growing our customer base, introducing to a new customer, and then the evolution that we've been able to invest in in terms of how we're designing and producing product has contributed to that growth over time. So proud of what our teams have accomplished. I can speak to, I'll speak to Urban Outfitters and newly, and then I'll let Melanie speak to the FP group now as we're referring to it. So Urban Outfitters really feels like they've turned a corner, and there's stability in the turn right now. Obviously, that's more so in North America than Europe, because Europe really didn't go through the same challenges that North America did. Just speaking to the Urban Outfitter's brand in Europe, we continue to honestly exceed our expectations. They're now going up against a multi-year stack of really healthy high singles to double-digit comps on a multi‑year stack. I don't think the macro there is necessarily as strong as what we're seeing here in the U.S. I think it's much more about their execution. I think they're executing extremely well from a fashion perspective, very well from creative and from a marketing perspective and connecting with their customer. I would say from a store perspective for Urban Outfitters in Europe, we're largely penetrated in the U.K. market, still plenty of room for digital growth. But the European market is a large opportunity for the Urban Outfits brand. They've seen some real success now in Germany, in France, in Spain, and it's a meaningful market. It can double their business for them, and its really around stores and around digital. And we're excited to see that business grow and grow profitably. For North America, you know, it certainly feels like, knock on wood, there's really healthy stability in the turn there. I think Sheila, Shea, and team have done a great job. You've seen consistent high single-digit comps from them. We're sort of in the second leg of the profitability recovery. If you remember, for those of you that heard me speak before, We talked about the first being margin recovery and specifically markdowns. When the brand was struggling, they had to be too reliant on promotions and markdown. We've largely recaptured that markdown rate. There's still a little bit more room to go, but largely they're doing a much better job there. Inventory is much, much more disciplined, and the fashion is appropriate. So they've recovered from that mark down perspective. The second leg is really about driving comp growth, and they've now driven consistent high single-digit comps for a few quarters now, and we see them being able to sustain that momentum. What gives us the confidence there and the sustained momentum is really around customer acquisition. The brand had lost a little bit of their cool factor, right? It's not a brand that wins on low price. They win on having the right fashion at the right price value. and really connecting from an experiential standpoint, whether it be digitally, mobile, through events in stores. And they had lost a little bit of that cool factor, a littlebit of that relevancy with that younger demographic. Now we're growing double-digit customer growth on our digital platforms. I think their marketing campaigns, their collaborations, what they're doing in universities, what they're doing on things like Reddit and connected TV you've seen them kind of get that it back and get their mojo back and that's what gives us confidence. There's always ebbs and flows as it relates to fashion cycle but I think they're connecting with that customer again in the right places and relevant ways and again it's regular price that's driving the comp which always leaves us more confident about sustainability of their momentum. As it relates to Nuuly, you know, we couldn't be more excited. I think certainly there were a lot of heads and kind of side-eye when we launched the concept a few years ago and we said it could get to a billion dollars. You know, we think, knock on wood, that they can eclipse $700 million this year with high single-digit operating profit. So I think there was an equal amount of questions as it related to Nuully of, you Know, what could the size of the business be from a top-line perspective, but could you do it profitably and we've certainly you know have proven that we can do so and we think that there's growth in room for an opportunity there as it relates to you know kind of where they're going where they are in their growth trajectory it's probably one of the brands we we know the least about as far as where they can go I think we're we remain more confident than ever that they can exceed a billion dollars you know we think they can continue to drive a hundred thousand or if not more, of active new subscribers growth year over year. Every time we look at the total addressable market, it grows bigger. And we look At Awareness, it's still relatively low. Retention rates remain really, you know, honestly really high and very consistent from cohort to cohort. And there's a lot of new opportunities that relates to what we call ARPU, right, the average revenue per subscriber or per user that is untapped opportunity for us. So we're very confident that this business has a long headway in front of it from a top-line perspective. We don't know what the ceiling is, but we're confident we'll be able to exceed a billion dollars. And we remain more confident than ever that it could be a 10%-plus operating profit business. Like I said, we believe it will hit high single digits this year, growing off of what we delivered last year. And there's really a few things that drive that profitability improvement, not just the core profitability. The improvements come from scale, and with the confidence in the top line, we're confident that that scale will add to leverage and fixed costs and your kind of core base that you don't have to market to in the same way. And then the second biggest opportunity is really around logistics. We spend a lot of manual labor in order to get that box out timely, clean, the product looking good to the customer. There's a lot of fruit on the tree from an automation perspective and from sort of just engineering and perfecting how we execute from a logistics perspective. So we feel good that there's a healthy amount of opportunity there to drive not just profit dollars but profit rate improvement as well for the newly business. And then for FP Group, which consists of free people and FP Movement, they had another great quarter, growing 15%. We believe that there's still a lot of growth to be had within FP Group. So FP Group consists of free people, which has had a long history of sustained growth, being driven by We the Free, Now Freest, and just continuing creativity from that brand. There's still distribution opportunities, both in North America as well as Europe. And then people often ask about FP Movement. we still think that's in the early innings of the growth and will provide a tremendous amount of growth for URBN going forward. Just to put it in a little perspective, it represents about a third of the FP group sales. And when you look at it domestically, there's just about 100 stores in the United States, and we think the opportunity is 2 to 3x that, to be as big as 2 to 300 stores just in the U.S. And then when you think about Europe and internationally, They're really just beginning to grow global brand awareness, both through direct-to-consumer channels as well as very strategic, high-profile wholesale partnerships. And that really will trail the way for expansion of new stores internationally. So we're super excited. We brought in a new president earlier this year. Her name is Andrea Perez. And we are really excited for her to lead them through the next chapter. And we believe that it can be a billion-dollar brand by 2030. And just to follow up on the FP group, that's where the majority of wholesale revenue is from? Yes, that's correct. So what are you seeing in the wholesale channel? I mean, yours is very different because you're mostly in specialty, but the health of the wholesale Channel, we've heard some things about end retailers not wanting to place a lot of inventory, being more conservative. But with the heat that we see from FP movement and FP, That's not the case here. That's correct. We have continued to have very strong quarters in wholesale, largely being driven by FP movement, both new distribution as well as comp growth of our existing partners. So that's super exciting. I think the strength of the product has really helped stabilize that business where others may be seeing some hesitation. Great. So then that brings me to this whole notion of retail compounder. And every once in a while people find that to be somewhat of an oxymoron, But the fact of the matter is, Trish, from the time that you've been there, it's been five consecutive years of anthro growth, maintaining now low team margins. These are healthy businesses. FP, from its inception, has just been a consistent compounder. Urban seems like it's going to get its mojo back. And so we see retailers have high watermark moments, and then they kind of overstay their welcome. How do you control that? And maybe I'll start with Trish, because yours is sort of the biggest entity, right? Continue to compound over great numbers. Yeah, I mean, I think it starts with the team, right. I think that it starts with empowering teams to think of new ideas, to find white space opportunities, to lean into our strengths. You know, we've spent a tremendous amount of time really looking at our speed to market model, right, So as you see changes and shifts in the business and you see seasonality happen, we've had a couple quarters where we've seen some changes in our business too. But I think the thing that allows us to continue to maintain that profit and that growth is our ability to really pivot and for our teams to be able to move quickly. and I think that's a capability that probably wasn't ingrained as deeply in the anthropology brand a few years ago. I'm incredibly proud as we evolve and as we grow and as the stacks get harder and the comps get tougher of their ability to be able to think about new ways to grow the business. We're testing new categories. We're test some different price points. We're looking at opportunities to look at kind of quality of fabrications that we use. And we're at kindof the early stages, I think, of some of the newer brands that we launched to be able to continue to gain market share in categories that we hadn't been in before. So I think it's about continuing to make sure that we stay connected to our customer, that we show up where they are, that we're thinking about new ways to engage with them. The speed of change in marketing is tremendous these days. And so I think ensuring that you're nimble, that we've got some flexibility, and that we're got some speed in our model to allow to adapt and evolve with customer preferences is really what our team talks a lot about and is really focused on. Great. I'm going to stay with you for a second. Yeah. Because on the call, so we've been, as Dick would say, seven years into a silhouette shift. Yeah. And the prior one was like 17 years, right? It started when you joined. That kind of like big over the little. So one of the things that I think Dick and Meg Hayne really instill across the organization is calculated risk-taking, right. So you're never sort of so long into something that you have to retrench from it. And sometimes we've seen the company take risks forward maybe a little bit early, but always on the front foot. Yeah. So as we think about sort of what's coming next, you know, we went from performance run and then to the wide leg with the low profile bottom, our shoes, to the more brown shoe. What comes next and how do you calculate kind of moving forward without overstepping, getting ahead of yourself? Yeah, I mean, that is the art of retail, right? I think we, and you're absolutely right, you Know, every week, every other week I meet with Jake and Megan. They're constantly pushing the teams outside of their comfort zone sometimes. And I think the ability to be able to really use the digital channel to test and get product very intentionally in front of customers to gauge reaction is incredibly important. It's a super exciting time, in my opinion, in fashion right now because there's so much range of newness, particularly in the bottoms category. So it used to be there was one silhouette, and then that declined, and then another silhouette took over. That still happens to a large degree, and we're kind of squarely in, you know, this, you know, kind of, you know, larger, wide-bottom cycle still. But there's so much newness in terms of as those shapes evolved and the fabrics then that you can put it in that feel really new to the customer. So I was just in our Newberry Street store yesterday, and the range of bottoms that we have in our store it's so evolved from where it had been right so we've got different shapes and denim you know there's so much newness and pants not only in fabrications but in end use and in a very very casual nature as well as kind of a polished dressed up nature of bottoms the anthropology customer has has been able to serve so I think really thinking about the growth of newness um and then you know taking some some big risks and some big swings and they don't always work, but when they do, it allows you to gain that momentum quickly and to be able to be on the forefront of that growth. So that's always the opportunity, the challenge, and I think what's fun about fashion retail in general. Great. The other question that I often get is, you know, how is the URBN able to differentiate the three brands that they have, not have a lot of overlap? So maybe, I mean, we kind of know what target market you go after, but at the end of the day, people trade up they trade down they they see things in different uh you know you know things that they want so how do you keep them separate from an operational standpoint i think it's it's something that we have remained focused on and committed to since you know the day we launched uh you know a second brand and you know certainly through my 20 plus years there now um it's one of the first things that being green in you is from a shared services perspective i think that's some of the strength is that we're able to leverage things like sourcing, technology, finance, logistics, and those big facilities. But as it relates to the brands and the customer, those walls remain tall and thick. And that leadership team is unique to that brand from a product perspective, from a creative perspective, from a marketing perspective, because it's their customer, it's their handwriting, it is their execution, and we do not run from building to building and say, oh, this fabrication is working, you should try this. That's an absolute no-no, and I was told that even as a finance guy when I first came. I remember Glenn Sank telling me, literally, you're going to be a part of this meeting and you don't run over to the next meeting and share, oh free people said you know, the crop top mini is, and he's like, he's like, you won't even know what that is. And I didn't at the time. Um, he said, but you don't share that type of information. They own their customer and they own their experience. And, you know、 we bring in as a company, uh, you Know, as you see here, just incredibly talented leaders to run and own their business. And we as a, as a portfolio of companies provide, you Now, what I hope oftentimes Tricia is great shared service support. Um but but the brand leadership owns their customer and they own the customer experience. Um, and we think it's critically important that, that we don't look the same across, uh, across all of our banners. And we think It's the benefit, right? The benefit to the portfolio and the diversification of the portfolio is that, you know, that allows one brand to at certain times, you know,, even outperform and, um, you don't, you have the strength of when, when one brand then is going through a bit of a transition, You've got the others that are sort of continuing to move the total URBN portfolio forward. So it's something we talk about frequently, allowing brand autonomy, and it's critical. And there are times you could even say that there are sort of small little leverage points that you could see from a shared services perspective that seem obvious, but we won't do because the customer experience is important. And let me just give you a quick little granular example, right? So we've got this big facility in Kansas, this million-square-foot fulfillment center, and we've Got things that are called autobaggers, right? So when the digital bags go out, well, it would be much easier if I had autobbaggers that could have the same bag for all three brands go through, and I could gain more efficiencies versus having each bag be separate and branded differently for the end use and the customer because now you've got to run different waves. It's less efficient. And, you know, my logistics team is like, oh, they're costing us another three cents per, you know, per order. No way. You know, there's no way that our brand leaders want to see the whole portfolio or URBN or all the other brands because that's their customer and their customer experience and their product. So we remain really disciplined on keeping the brand and the brand execution and their customer base as unique. And it's something that's important to us. And it has been, I think, since the, you know, the inception. Great. Melanie, let me come back to you about the change over the past five years out of the pandemic. I think everybody learned a lot and some companies just got really efficient. So since 2022, top line has consistently grown. Margins have consistently expanded right there at that 10% margin level. In the past six quarters, you've been doing double digit top line growth. Your guidance has been high single each of those quarters. That's pretty remarkable, all things considered, tariffs, wars, oil, all those different things. And I think I attribute that going back to sort of the foundational portfolio. So can you talk about how, since you're over your tenure, how different the business model is from the CFO seat today? And I'm going to say how much easier, but I'm putting that in air quotes. But I guess how much more consistent the business model can be for a longer-term investor. Yes, I agree. Maybe it makes my job a little easier. I would say my teams and the brands are doing a really good job, I think, whether it's managing margins and making sure that we are very nimble when the world is constantly changing with tariff changes and changes in transportation costs or any other challenge that they have. So I really do think the teams have done a great job in, like, quickly trying to react while at the same time not, you know, creating a risk to the top line. And they're constantly looking for new ideas. You know, we do get some leverage as we have had strong top line, but there has been a great focus on finding efficiencies in delivery expense and packages per things that actually have less cost but at the same time have a better customer experience. I mean, that's nirvana, right, where you can find efficiencies where the customer either doesn't notice it or, even better, it's a better experience. So I think the team has been very focused on that. While at the same time, we have continued to invest in SG&A and driving customer acquisition, driving technology investments, and other investments in new businesses like Nuuly and things like that. So I do think we've created this portfolio while at the time we have, you know, there's a lot of financial discipline behind it that's driven the profit improvement. If I can just expand, because it's a topic that I think we're really proud of and we think has been tantamount to the consistency of our success and I think tantamaut to the consistency of what we believe we can drive going forward. You mentioned the multiple quarters and the five big brands now and the diversity of the portfolio. And for myself, having been here 20 years, when I started, I remember John Keyes and getting sort of it was either urban or anthro. And then if you get them both to be right, he's like, it's a really exciting time at that point in time. And I think that was very much the investment thesis on what we now call URBN. We have moved well beyond that. And it's been 100% intentional. right free people is at scale now um where they're a large business you've got um you know urban outfitters where the recovery is well on the way and you've gotten anthropology which is a very large powerful successful brand with growth ahead of it and you got two younger brands that we don't know necessarily what the ceiling is but they're now meaningful right so newly knock on wood should eclipse 700 million this year free fp movement should it should be over 500 million this this year. FP Movement's profitability is close to free people's profitability from a rate perspective. So they're already double digits and always hitting high single digits. So I think oftentimes the parts are very important, but I think it's the consolidated portfolio now that really enables us to invest and to learn and to continue to drive consistent results from a top line and a bottom line perspective and you see it um you know you saw it when urban outfitters was challenged um and you know we were transitioning from a leadership perspective anthropology and free people were able to carry the weight and newly at that time was a business we were investing in that wasn't profitable now you know your seeing you know anthropology which gets a lot of focus and we you know sort of chuckle back home and say geez if this is bad at a three percent comp and low teens operating profit, you know, we're pretty darn happy, but we know the high standards that Tricia and her team have set for themselves to, you know, to be at a mid-singles and to be mid-teens, and they'll get back there, but, you know, so they're slightly off the bullseye, Free People's crushing it, Newly's growing, and you've got the Urban Turnaround story, so the strength of their portfolio, I think, really allows us to deliver consistent results in a way that, you know, Urban Outfitters, Inc., you know wasn't known for years ago but I think we're resetting, you know, we're reseting the expectations certainly for ourselves and it's been intentional as well as I think I hope for the external market and by having this big portfolio as well, you are able to, as Melanie said, you know, to be able to invest and learn and I mentioned earlier how fashion, you know we don't share across the board but we do from a shared services perspective there are certain areas you know like marketing we'll try different platforms we'll tried um different campaigns and things of that nature because you're always testing and learning from marketing that'd be like oh you know and if we see success whether it be one one or the other some of those things will be shared right not the creative execution not the look and not the feel but you know i saw this segmentation or this personalization or this thing tied to the infrastructure or how the website is set up and to be able to have you know multiple businesses at scale across geographies across categories and learn from each other um you know we honestly think it's just something that's going to propel us for for many years to come great um in our last few minutes i know i'm watching there's the clock wrap up um with the tech stack um and what i what i one of the things that kind of were focused or my team's focused on are which companies have made the compounding investment over multiple years to get to the point where AI can be really a big driver. Because of Newly, I feel like you were sort of catapulted into this, you know, your new DCs, the efficiency of the supply chain, and I'm using a lot of digital data. So, you now, in the world of life beyond 10% margins, which it just seems like you articulated so many drivers of those, How important is kind of having the right tech stack and where are you in the maturity of that to be able to really capitalize on AI and all the great things that are happening? One, I think it's really exciting and I think its going to be critically important. And I don't know, I can certainly tell you we're in the early innings. I don' t know when the, whether it's two years, two months, but certainly not two months or ten years, we'll be able to say we're in the middle innings because the technology and the strength of it is just moving at such a fast rate. It feels like everyone's job and function will be favorably impacted in some way from finance, the analysis and reporting and enable of information from a merchandising perspective, being able to see and read and react from an analysis that we're able to get, speeding up the product lifecycle calendar, right? So one of the things that's driven our markdown rate down over the last 10 years was in 2016, we adjusted our calendars. And we weren't slow by any means versus industry comparisons, but we knew that the faster you are, the more successful that we'll be. We think technology is going to be another unlock to be able to speed up our calendARS and allow our creative teams, the merchants, the designers, to, one, make decisions closer into demand, which is going to make them more accurate, and it gives them just new tools and capabilities to expand their creativity, being able to build an asset digitally versus having to hand-sketch it and make changes. They're able to sort of enhance what they're able to build and see and understand and move fabrics in and understand drapes and things of that nature. It's just so exciting if you think about marketing and, you know, how you'll be able to be smarter about personalization, be smarteraboutsegmentation on your outbound campaigns, it's going to touch every end of the business. There's no question about it. I think we've got a lot of things that we're testing and learning from, but I would say it's still early innings, but it's something that we don't go a day, maybe not an hour, honestly, as an organization, without talking about. Great, and that is right on time. I hope just from this that people take away how truly differentiated URBN is. I've covered the stock, as I said, for a couple decades, and this is about as good as I've ever seen the team executing. Great. Thank you very much. Thank you for coming. Thank you.