Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — ICR 2014
47 slides from Urban Outfitters's conference presentation, 2014
Slide 1: Slide 1
Slide 2: Slide 2
Slide 3: Forward-looking statements
“THE FOLLOWING DISCUSSIONS MAY INCLUDE FORWARD-LOOKING STATEMENTS. PLEASE NOTE THAT THE 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 FILI
Slide 4: Holiday definition note
* Holiday referred to in this presentation includes November and December
Slide 5: Total year-over-year sales: +8%
‘Fotal year-over-year sales: +8% -
Slide 6: Total year-over-year sales: +8%, retail comp +3%
‘Fotal year-over-year sales: +8% Total retail segment® ‘comp’ sales: +3% *Potal retail segment ‘comp’ includes sales from the direct-to-consumer channel
Slide 7: Wholesale sales: +21%
‘Fotal year-over-year sales: +8% Total retail segment® ‘comp’ sales: +3% Wholesale sales: +21% *Potal retail segment ‘comp’ includes sales from the direct-to-consumer channel
Slide 8: Slide 8
Slide 9: Anthropologie +11%
Anthropologie +11% -
Slide 10: Free People +21%
Anthropologie +11% . Free People +21%
Slide 11: BHLDN & Terrain solidly positive
Anthropologie +11% . Free People +21% BHLDN & Terrain solidly positive
Slide 12: Urban Outfitters -6%
Anthropologie +11% . Free People +21% BHLDN & Terrain solidly positive Urban Outfitters -6%
Slide 13: Fashion misses in key classifications
Fashion misses in key classifications Product offering too narrow Looks and silhouettes poorly defined Highly competitive and promotional environment
Slide 14: Slide 14
Slide 15: Category trends
Maa CATEGORY a __
Slide 16: Slide 16
Slide 17: Womenswear consumer expenditures
WOMENSWEA 5’ Consumer Expenditu sumer U nit L992 hae
Slide 18: URBN direct-to-consumer sales growth
URBN direct-to-consumer sales grew approximately 8x faster than ‘comp’ store sales URBN mobile sales grew 77% this holiday season
Slide 19: Online spending trends (Mastercard)
FY 2007 et FY 2008 | : # FY 2009 Bem FY 2010 ities: i FY 2012 (Source: Mastercard:
Slide 20: Declining mall traffic, price competition
30% OFF entire store DECLINING PRICE MALL TRAFFIC COMPETITION
Slide 21: Mall traffic CAGR (ShopperTrak)
| CAGR (5)% 91% 3 Source: ShopperTrack. bispe ts it atti testa if same ai ii fall deer} 16)
Slide 22: Sale environment
SALE moe
Slide 23: Slide 23
Slide 24: Continue to focus on creating strong brands
Continue to focus on creating strong brands.
Slide 25: Diversify our product offering
Continue to focus on creating strong brands. Diversify our product offering
Slide 26: Continue to invest in omni-channel growth
Continue to focus on creating strong brands. Diversify our product offering Continue to invest in omni-channel growth
Slide 27: A strong brand is created through an emotional connection
A strong brand is created through an emotional connection by... Creating compelling products Creating an engaging customer experience
Slide 28: Hyundai Sonata Hybrid vs Tesla Model S pricing
HYUNDAI SONATA HYBRID TESLA MODELS $22,145* $71,500* *MSRP according to caranddriver.com (21)
Slide 29: Strong brands have less price sensitivity
Strong brands have less price sensitivity Svovcnn: 7-ELEVEN COFFEE STARBUCKS COFFEE 2002 - $1.59 VENTI = $2.25 42% Premium
Slide 30: Social Commerce IQ: Retail 2013
& 8@ BRIDGE SOCIAL COMMERCE |1Q™ RETAIL 2015 Annual Analysis of How Over 800 Retailers Are Using Social Commerce to improve the Shopping Experience
Slide 31: Engaging customer experience: social platforms analyzed
ENGAGING CUSTOMER EXPERIENCE SCIQ:RETAIL2013 (— _ Social Platforms Analyzed Social Platforms Analyzed Oo & Facebook = = =YouTube = Twitter «= —sinstagram Pi iS
Slide 32: SCIQ Retail 2013 top companies
SCIQ:RETAIL2013 / - Top 25 Companies Brand Social Uy im Website Social SCRM Potential Rank on gecla Traffic Score Lift Score Score 120.0
Slide 33: Slide 33
Slide 34: Please customers more by expanding categories and geography
Please customers more by expanding categories Please more customers by expanding geographically
Slide 35: URBN brands are customer-centric, not category-centric
Le Hy I Le FOOTWEAR APPAREL ACCESSORIES INTIMATES DEPARTMENT STORE 4— SPECIALIZED CATEGORY APPAREL SPECIALIZED CUSTOMER Y SPECIALTY STORE URBN BRANDS
Slide 36: New categories by brand
Anthropologie ~ petites, wedding, home, intimates, beauty, jewelry, shoes, accessories, outdoor living, services Urban Outfitters — beauty, apartmentwares, active, electronics, services Free People-— shoes, intimates, special occasion dresses, active
Slide 37: Online, larger stores, wholesale channel
Online Through larger stores Through wholesale channel
Slide 38: Current and potential stores by brand
BRAND CURRENT STORES POTENTIAL STORES Anthropologie North America 184 200-250 Europe 4 60-100 Asia + undetermined Urban Outfitters North America 189 200-250 Europe i 40 60-100 Asia : = undetermined Free People North America 89 125-150 Europe : rit undetermined Asia): if Fd undetermined *Owned and ‘o
Slide 39: Grow direct-to-consumer globally
PLEASE MORE CUSTOMERS: | _GROW DIRECT-TO-CONSUMER GLOBALLY Fast and free shipping Multi-language sites Multi-currency checkout Global assortment through single SKU Country specific marketing
Slide 40: International showrooms and distribution
Opened showroom in London (July 2013) Opened showroom in Tokyo (October 2018) Entered into exclusive distribution agreement in Japan :
Slide 41: Slide 41
Slide 42: Highest priority: regain momentum at Urban Outfitters
Our highest priority is to regain momentum at the Urban Outfitters brand Ensure the right talent is in place Emphasize training and development Improve procedures and communication Infuse more creativity
Slide 43: Grow store count: FY2015 store opening plan
Grow store count FY 2015 STORE OPENING PLAN ANTHROPOLOGIE URBAN OUTFITTERS FREE PEOPLE North America 12 10 12 Europe me es _ Total 15 12 12
Slide 44: Grow direct-to-consumer, expand wholesale
Grow direct-to-consumer Increase global presence Add new categories Expand Wholesale Launch new shoe category and expand intimates assortment Grow global presence
Slide 45: Launch larger format stores with expanded categories
Launch larger format stores with expanded categories Present larger format store concept at URBN 2014 Investor Day Open expanded store in late FY’15 or early FY’ 16
Slide 46: URBN produced solid holiday 2013 sales
URBN produced solid holiday 2013 sales Direct-to-consumer continues to gain market share A strong brand is the primary anecdote to price competition URBN brands are customer-centric not category- centric All URBN brands have multiple paths to grow
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