Urban Outfitters, Inc. · NASDAQ:URBN
Urban Outfitters — Shareholder Meeting (June 2018)
33 slides from Urban Outfitters's shareholder meeting presentation, Jun 5, 2018
Slide 1: Urban Outfitters, Inc. Annual Meeting of Shareholders
BN URBAN OUTFITTERS, INC. Annual Meeting of Shareholders JUNE 5, 2018
Slide 2: 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 3: Agenda
Agenda Greeting and Introductions Formal Business Business Review Factors Driving Better Results Growth Initiatives ¢ Shareholder Questions ¢ Closing and Adjournment 2018 Annual Meeting of Shareholders 03
Slide 4: Introductions: Brand Leaders
Introductions BRAND LEADERS ANTHROPOLOGIE Andrew Carnie President, Home, Garden & International, Anthropologie Group Hillary Super President, Apparel & Accessories, Anthropologie Group FREE PEOPLE Ma rgaret A. Hayne CEO, Free People Brand Sheila Harrington President, Free People Brand URBAN OUTFITTE
Slide 5: Introductions: Shared Service Leaders
Introductions SHARED SERVICE LEADERS Frank J. Conforti Chief Financial Officer Margaret A. Hayne Chief Creative Officer Calvin B. Hollinger Chief Operating Officer Dave Hayne Chief Digital Officer Barbara A. Rozsas Chief Sourcing Officer David Ziel Chief Development Officer Azeez Hayne General Couns
Slide 6: Introductions: Outside Meeting Assistants
Introductions OUTSIDE MEETING ASSISTANTS William Park Audit Partner, Deloitte & Touche LLP Felix Orihuela American Stock Transfer & Trust Company, LLC 2018 Annual Meeting of Shareholders 06
Slide 7: Directors
Slide 8: Current Directors
Current Directors Edward N. Antoian Scott A. Belair Sukhinder Singh Cassidy Harry S. Cherken, Jr. Scott Galloway Audit, Compensation and Audit Committee Nominating and Governance Nominating and Governance Innovation Committee Leadership Development*, Committee Committee Innovation Committees* Margar
Slide 9: Retiring Directors
Retiring Directors Scott A. Belair Robert A. Strouse 42 years 16 years Thank you for your years of service 2018 Annual Meeting of Shareholders 09
Slide 10: Slate of Directors for 2018/2019
Slate of Directors for 2018/2019 Edward N. Antoian Sukhinder Singh Cassidy Harry S. Cherken, Jr. Scott Galloway Robert L. Hanson Managing Partner & Chief President, Stubhub Partner, Drinker Biddle Clinical Professor of Chief Executive Officer Investment Officer Chairman of the Board and & Reath LLP
Slide 11: Formal Business
Formal Business
Slide 12: Formal Business: Notice and Quorum
Formal Business ¢ Mailing of Notice and Presence of a Quorum BR 2018 Annual Meeting of Shareholders 12
Slide 13: Formal Business: Election of Directors
Formal Business ¢ Mailing of Notice and Presence of a Quorum e Election of Directors SLATE OF DIRECTORS Edward N. Antoian Sukhinder Singh Cassidy Harry S. Cherken, Jr. Scott Galloway Robert L. Hanson Margaret A. Hayne Elizabeth A. Lambert Joel S. Lawson IIT Richard A. Hayne 2018 Annual Meeting of Sh
Slide 14: Formal Business: Ratify Deloitte & Touche
Formal Business ¢ Mailing of Notice and Presence of a Quorum e Election of Directors ¢ Ratify: Appointment of Deloitte & Touche, LLP BR 2018 Annual Meeting of Shareholders 12
Slide 15: Formal Business: Advisory Vote on Executive Compensation
Formal Business ¢ Mailing of Notice and Presence of a Quorum e Election of Directors ¢ Ratify: Appointment of Deloitte & Touche, LLP ¢ Advisory Vote on Executive Compensation BR 2018 Annual Meeting of Shareholders 12
Slide 16: Business Review
Business Review
Slide 17: Fiscal 2018 Financial Results
Fiscal 2018 Financial Results Generated Record Sales: Retail Segment Comps: Opened New Stores: Delivered Record Wholesale Sales: Earned Operating Income: Earnings Per Diluted Share: BR 2018 Annual Meeting of Shareholders $3.6B, 2% increase flat 14 North America 4 Europe $316M, 9.5% increase $260M $0
Slide 18: Retail Segment 'Comps' by Quarter
Retail Segment ‘Comps’ by Quarter QIFY'8 Q2FY18 Q3 FY18 Q4FY18 QIFY19 BR 2018 Annual Meeting of Shareholders
Slide 19: Factors Driving Better Results
Slide 20: Four Factors Driving Stronger 'Comps': Strong Economy
FACTORS Four Factors Driving Stronger ‘Comps’ ¢ Strong Economy BR 2018 Annual Meeting of Shareholders 7
Slide 21: Strong Economy: Unemployment Rate
FACTORS Strong Economy Unemployment Rate PERCENTAGE 4.8 - 4.6 - 4.4 - 4.2 - 4.0 4 3.8 4 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr ¢ 2017 > ¢+——— 2018 ———_» Source: BLS BR 2018 Annual Meeting of Shareholders 18
Slide 22: Strong Economy: Consumer Confidence Index
FACTORS Strong Economy Consumer Confidence Index INDEXED TO 100 101.0 - 100.8 + 100.6 — 100.4 QUFY18 Q2FYI8 Q3FY18 Q4FY18 QIFY19 Source: OECD SRI 2018 Annual Meeting of Shareholders 19
Slide 23: Four Factors: Tax Cuts & Jobs Act
FACTORS Four Factors Driving Stronger ‘Comps’ ¢ Strong Economy e Tax Cuts & Jobs Act BR 2018 Annual Meeting of Shareholders 20
Slide 24: Effects of Tax Cuts & Jobs Act
FACTORS Effects of Tax Cuts & Jobs Act ¢ Estimated $1,000 increase in disposable income for average $50,000 household* e Estimated $128 billion increase to total household income from lower withholding in 2018* e Annual wage growth in January was highest since 2009** * Source: Morgan Stanley Report
Slide 25: Four Factors: Changing Fashion Silhouette
FACTORS Four Factors Driving Stronger ‘Comps’ ¢ Strong Economy e Tax Cuts & Jobs Act ¢ Changing Fashion Silhouette BR 2018 Annual Meeting of Shareholders 22
Slide 26: Changing Fashion Silhouette
FACTORS Changing Fashion Silhouette Fading Emerging BR 2018 Annual Meeting of Shareholders (23
Slide 27: Four Factors: Better Execution
FACTORS Four Factors Driving Stronger ‘Comps’ ¢ Strong Economy e Tax Cuts & Jobs Act ¢ Changing Fashion Silhouette e Better Execution BR 2018 Annual Meeting of Shareholders 24
Slide 28: Strong Q1 FY'19 Financial Results
Strong Q1 FY’19 Financial Results Generated Record Sales: Retail Segment Comps: Opened New Stores: Delivered Record Wholesale Sales: Earned Operating Income: Earnings Per Diluted Share: BR 2018 Annual Meeting of Shareholders $856M, 12% increase 10% 2 North America 2 Europe $80M, 13% increase $54M, 1
Slide 29: Growth Initiatives
Slide 30: Growing Digital
GROWTH INITIATIVES Growing Digital IRBAN OUTFITTERS Wome’s Mets Apart Muse «Teh oy Sim + nian le ° Atterpay Launched New Web Platform Across All Three Brands Elevated Mobile Experience Enhanced Personalization Program Added New Pay Methods Expanded Assortments and Sizes EN 2018 Annual Meeting of Sha
Slide 31: Growing Wholesale
GROWTH INITIATIVES Growing Wholesale Continued Free People Category Expansion— Denim & Movement Launched Anthropologie Home Expanded Geographically BR 2018 Annual Meeting of Shareholders (28
Slide 32: Growing International Business
GROWTH INITIATIVES Growing International Business ear Qi e © URBAN ‘FQUTFITTERS Bis FASHION ONAN ig | awe Continue to Open New Stores in Europe Recent Store Openings include Paris, Milan, Vienna (UO) & Dusseldorf (Anthro) Expect to Open Additional Franchise Locations in Israel Continue to Grow Tmall
Slide 33: URBN