Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Investor Day (2012)
104 slides from Urban Outfitters's investor day presentation, 2012
Slide 1: We've changed our name: Urban Outfitters
We've changed our name. the Free People’s Store is now Urban Outfitters You'll still find a great selection of clothes and shoes for your kind of living - Wrangler, Levi, Wool- rich, Clark, and Bass. Books, records, gifts, and housewares, too. And lots of plants and plant supplies. Your outfitters,
Slide 2: Urban Outfitters
, puctitters
Slide 3: 1906 The New Yorker Magazine
1906 The New Yorker Magazine “The hell of it is those punks pump over fifteen billion dollars into the economy every year.”
Slide 4: 2012
JU -Z2812
Slide 5: Urban Outfitters logo
Slide 6: Growth
Slide 7: Cornerstones of Growth
Slide 8: Stores
Slide 9: Growth: Cornerstones
GROWTH: CORNERSTONES e Leverage “Own Brand” product/concepts
Slide 10: Growth: Cornerstones
GROWTH: CORNERSTONES e Leverage “Own Brand” product/concepts e Distort the opportunity of Direct-to-Consumer globally
Slide 11: Growth: Cornerstones
GROWTH: CORNERSTONES e Leverage “Own Brand” product/concepts e Distort the opportunity of Direct-to-Consumer globally e Continue to open stores in North America and Europe
Slide 12: Growth: Cornerstones
GROWTH: CORNERSTONES e Leverage “Own Brand” product/concepts e Distort the opportunity of Direct-to-Consumer globally e Continue to open stores in North America and Europe e Launch our Brand in the Asian market
Slide 13: Growth: Ten Year CAGR = 20%
\ GROWTH TEN YEAR CAGR = 20% Sales ($ in millions) 1153 vullllllll 1200 1000 1002 £002 to) oy 4 Tt0z 2002 s002 L002 8002 6002
Slide 14: Product
PRODUCT | =
Slide 15: Growth: Product
—————aeaeEE~~S>=sK”_—éa(—sF——eteeeseSh GROWTH: PRODUCT e “Own Brand”
Slide 16: Growth: Product
GROWTH: PRODUCT e “Own Brand” e Business distortion/assortment expansion
Slide 17: Growth: Product
GROWTH: PRODUCT e “Own Brand” e Business distortion/assortment expansion e Leverage the opportunity of “Web-Ex” ‘ |
Slide 18: Growth: Product
GROWTH: PRODUCT e “Own Brand” e Business distortion/assortment expansion e Leverage the opportunity of “Web-Ex” e Collaborations ‘ |
Slide 19: Direct
DIRECT E
Slide 20: Growth: Direct
GROWTH: DIRECT | e Broaden product offer e Customer Acquisition ¢ Retention/Loyalty ¢ Segmentation/Versioning | Mobile
Slide 21: Stores
Slide 22: Open 10-12 stores/year in North America
e Open 10-12 stores/year in North America* e Open 4-5 stores/year in Europe* * Over next 3 years
Slide 23: Store opening plan and 4 wall productivity
e Open 10-12 stores/year in North America* e Open 4-5 stores/year in Europe* e Improve 4 wall productivity | * Over next 3 years
Slide 24: Store opening plan and in-store experience
© Open 10-12 stores/year in North America* e Open 4-5 stores/year in Europe* | | © Improve 4 wall productivity | e Evolution of In-Store experience * Over next 3 years
Slide 25: International
INTERNATIONAL
Slide 26: International expansion: Europe and Asia
e Continued expansion in European market e Launch business in Asia e Distort opportunity of Direct-to-Consumer e Evaluate potential partnerships
Slide 27: Free People
Slide 28: Free People
Slide 29: Anthropologie
ANTHROPOLOGIE
Slide 30: A Love Story
Slide 31: Anthropologie agenda
ANTHROPOLOGIE So A mm Bw Wy our HISTORY our CUSTOMER MERCHANDISING CHANNELS moving FORWARD growth DRIVERS
Slide 32: Our History
: a eur HISTORY | | ela
Slide 33: Anthropologie | Our History
ANTHROPOLOGIE | OUR HISTORY A Relationship 20 Years In The Making From a US-based apparel and home store... ...toa Multichannel, International “lovemark.” * 1992 * 1998 * 2005 * 2006 * 2009 ¢ 2011 e 2012 founded in Wayne, PA launched catalog and website web business hit $50 million sales reach $500
Slide 34: Anthropologie | Net Sales: Rolling Months
ANTHROPOLOGIE | OUR HISTORY Net Sales: Rolling 12 Months $1,000 $900 $800 $700 $600 $500 Yearknaing. Toutaiing YearEnding Toe 08/09 08/10
Slide 35: 2 Our Customer
Slide 36: Anthropologie | Our Customer
ANTHROPOLOGIE | OUR CUSTOMER She Is Deeply Committed... * Target age 28 to 45, but our brand is ageless * Well-educated and well-to-do, but neither defines her What sets her apart * Aspires to express her unique personal style * Interested in art, culture, travel and entertaining * More loyal than t
Slide 37: Anthropologie | Our Customer dashboard
ANTHROPOLOGIE | OUR CUSTOMER Dashboard Channel Direct. Customers Entire Database 319K 4.1M (13%) Multichannel Customers Unidentified Net Sales 73% of Net Sales are matched to a customer Data Coveragefor 12 months ending 02 2012| Order Match Rate: 61% (Retail =57%, Direct =97%)| Age Coverage: 68%
Slide 38: 3 Merchandising
Slide 39: Anthropologie | Merchandising
ANTHROPOLOGIE | MERCHANDISING Our Products, Our Passion Our products aspire to touch the artistin everyone. 8,900 unique styles this year Weekly new arrivals to stores and website In-house design (approximately 50% own-brand) Roughly 50% curated market product, with a drive towards exclusivity Celeb
Slide 40: 4 Channels
Slide 41: Anthropologie | Channels
ANTHROPOLOGIE | CHANNELS World-Class Store Environments That Woo * Sensorial, tactile and transportive * Localized product, planning and display * Built genuine customer relationships; created an environment where customers feel they are among friends * Windows as art installations Average duration
Slide 42: It's like an adventure when you go in there
“It’s like an adventure when you go in there” PAMELA, 43, DALLAS
Slide 43: You walk in and say oh yeah, I want everything
v! y (HHMI Weert é “You walk in and say 299 ‘oh yeah, I want everything ANA, 26, LOS ANGELES
Slide 44: Anthropologie is a microcosm of all things beautiful
“Anthropologie is a microcosm of all things beautiful” KATHIANNE, 37, CHICAGO
Slide 45: Anthropologie | Channels: Re-Imagined Web Experience
ANTHROPOLOGIE | CHANNELS a Re-Imagined Web Experience Site Redesign * Developing exceptional usability * Larger, richer product and category pages * Surfacing targeted content to increase conversion * Begin to expand customers’ presence on site Digital Marketing * Increasing investment in various ch
Slide 46: Anthropologie website product page
SEARCH # SIGN IN BASKET 2 ANTHROPOLOGIE house & home gifts sale the MAGAZINE accessories new arrivals the dress shop shoes Back to Dresses Caridad Ruffled Dress $198.00 “xe 30 REVIEWS See most helpful review | Write a review OoBY = V) size guide ADD TO BAG ADO fo WISH LIST FIND in a STORE SHIPPING a
Slide 47: Anthropologie website Fine Arts
ANTHROPOLOGIE new arrivals dress shop shoes accessories house & home gifts sale the MAGAZINE Fine Arts Heading It
Slide 48: Moving Forward
oD moving FORWARD
Slide 49: Anthropologie | Moving Forward
ANTHROPOLOGIE | MOVING FORWARD Learning and Evolving : Reigniting the Spark * Evaluating team and organizational structure * Reconnecting the organization to the customer * Refocusing product team on product she loves * Building stronger merchandising, design, ecommerce and customer-engagement capab
Slide 50: Growth Drivers
F CUNNINGHAM BENTLEY SPEC
Slide 51: Anthropologie | Growth Drivers: Product Expansion
ANTHROPOLOGIE | GROWTH DRIVERS How The Story Grows... Product Expansion From an apparel-focusedclassification business... ...toa Life-stage, Lifestyle merchant. * Complete her wardrobe in casual, wear-to-work, and accessories * Build the lifestyle in home furnishings and tabletop * Enrich the assort
Slide 52: Anthropologie | Growth Drivers: Channel Growth
ANTHROPOLOGIE | GROWTH DRIVERS How The Story Grows... Channel Growth Froma US store-focused business... .. toa Multinational, Omnichannel enterprise. * Fill in existing US retail markets * Increase our digital reach worldwide * Expand into new markets across the globe
Slide 53: Anthropologie | Growth Drivers: Customer Relationships
ANTHROPOLOGIE | GROWTH DRIVERS How The Story Grows... Customer Relationships From an instinctive approach... ... to emotional connections based on deep analytic insight. * Increase value of existing customers by growing “share of closet” and “share of home” * Re-engage lapsed customers through perso
Slide 54: Anthropologie just makes me happy
“ANTHROPOLOGIE just makes ME HAPPY” KIM, 29, BOSTON
Slide 55: URBN
See OD
Slide 56: URBN headquarters
Slide 57: Reno Fulfillment Center
Slide 58: Point of sale tablet in store
Slide 59: Point of sale tablet at checkout
Slide 60: URBN headquarters
Slide 61: Information Technology: Enabling URBN Growth
INFORMATION TECHNOLOGY ENABLING URBN GROWTH
Slide 62: Omni-Channel Mobility
OMNI-CHANNEL MOBILITY
Slide 63: Store Pick Pack & Ship Benefits
STORE PICK PACK & SHIP BENEFITS DEMAND INCREASE: * Last Week Total shipped from Stores: $1.4 min * Meaningful portion is incremental MARKDOWN AND DIME-OUT REDUCTION: « Web-exclusive returns filled from store ¢ Orders filled from slower turning locations WEEKS OF SUPPLY DECREASE: ¢« Faster inventory
Slide 64: Improvement in West Coast Delivery
IMPROVEMENT IN WEST COAST DELIVERY +20% +13% 1-2 DAY COVERAGE GROWS FROM 0% TO 20% 0% +1% —— MAY JUNE JULY AUGUST West Coast is AZ, CA, CO, ID, MT, ND, NM, NV, OR, SD, UT, WA, WY Standard Delivery Services
Slide 65: Mobile point of sale
Slide 66: iPod POS
iPOD POS Discounts ANTHROPOLOGIE mobée port of sale STILA- UP GLOSS-NE 25.00 11104940 Associate Associate 1D Git Receipt
Slide 67: Returns
No Receipt Gift Receipt Direct Return RETURNS BASIC WOVEN CAM! 21079637 SiS SLK PRT W DRAPED 21239975 Ronen Cust +MULTI TOURM COLLECT 10; 91.95 owt then Number: 21079637 hem Description: BASIC WOVEN CAM! Pree = 48.00 Select reason cose
Slide 68: Reticketing
RETICKETING Print Ticket Options SKU Entry Search for SKU
Slide 69: Restocking
RESTOCKING ae) a er) CLASS SELECTION FILL SKU Wow 112 - CUT AND SEWN KN BDG 5 POCKET SHORTIE Qty to Fit 1 Son 4 Color OF OSA Short MLe 1905007) Gass: 125 Price: 49.00 On Hane | 4.086 SHUS heve been filed
Slide 70: Out-of-Stock
OUT-OF-STOCK SLS SLK PFT W ORAPED FRON Quantum Biovre 411033195590 LK PRT W ORAPED FR Quantum Blouse RIED MOTIF 2 RED MOTIF 2 401 WAYNE PA More Results Print Resutts
Slide 71: iPad POS
iIPAD POS an oF enter SKU. [mcs | SAULTT TOUR COLLECT BASIC WOVEN Cant Bang Intormation
Slide 72: Store technology
Slide 73: Store technology
Slide 74: Store technology
Slide 75: URBN Investor Day 2012
URBN INVESTOR DAY 2012
Slide 76: URBN headquarters
Slide 77: Path to Growth
PATH TO GROWTH
Slide 78: Sell More Things...
PATH TO GROWTH SELL MORE THINGS...
Slide 79: Assortment Expansion
ASSORTMENT EXPANSION
Slide 80: Assortment Expansion: Size and Color Offerings
ASSORTMENT EXPANSION EXPANDED SIZE OFFERINGS
Slide 81: Assortment Expansion
Slide 82: New/Expanded Categories
Slide 83: To More People...
Slide 84: Population, GDP and Expenditures on Apparel
Slide 85: Apparel & Accessory Market Opportunity
Slide 86: Stores: North America, Europe, Asia
Slide 87: Oxford Street London
Slide 88: Regent Street London
Slide 89: Walnut Street Philadelphia
Slide 90: Direct-to-Consumer
Slide 91: Direct-to-Consumer: Digital Marketing
Slide 92: Direct-to-Consumer: Localized Websites
Slide 93: Direct-to-Consumer: Fulfillment
Slide 94: Digital Marketing
Slide 95: Localized Websites
Slide 96: Fulfillment
Slide 97: Wholesale: Europe and Asia
Slide 98: Accelerate Growth
Slide 99: Slide 99
Slide 100: Slide 100
Slide 101: Slide 101
Slide 102: Slide 102
Slide 103: Slide 103
Slide 104: Slide 104