About Urban Outfitters

Urban Outfitters, Inc. operates as a leading lifestyle products and services company. The company operates a portfolio of global consumer brands consisted of the Anthropologie, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands. Segments The company operates under three reportable segments – Retail, Wholesale and Nuuly. Retail Retail segment includes the company’s store and digital channels and consists of its Anthropologie, Free People, FP Movement, Terrain, Urban Outfitters and Menus & Venues brands. The company has experience creating and managing retail stores that offer highly differentiated collections of fashion apparel, accessories and home goods, among other things, in inviting and dynamic store settings. The company’s core strategy is to provide unified environments that establish emotional bonds with the customer, through company-owned stores and franchisee-owned stores. In addition to retail stores, the company offers its products and services directly to its customers through its websites, mobile applications, social media and third-party digital platforms, catalogs and customer contact centers. The Menus & Venues brand includes various casual dining concepts and event venues. Wholesale The company operates a Wholesale segment under the Free People, FP Movement and Urban Outfitters brands. The Wholesale segment sells through department and specialty stores worldwide, digital businesses and the company’s Retail segment. The Wholesale segment primarily designs, develops and markets apparel, intimates and activewear. Nuuly The company’s Nuuly segment consists of the Nuuly brand, which includes Nuuly Rent and Nuuly Thrift and offers customers a more sustainable way to explore fashion. Nuuly Rent is a monthly women’s apparel subscription rental service. Nuuly Thrift, which launched in October 2021, is a peer-to-peer resale marketplace where customers can buy and sell any brand of women’s, men’s and kids’ apparel, shoes and accessories. The company’s Retail segment omni-channel strategy enhances its customers’ brand experience by providing a seamless approach to the customer shopping experience. All available Company-owned Retail segment shopping channels are fully integrated, including retail locations, websites, mobile applications, catalogs and customer contact centers. The company’s investments in areas, such as marketing campaigns and technology advancements are designed to generate demand for the Retail segment omni-channel and not the separate store or digital channels. The company manages and analyzes its performance based on a single Retail segment omni-channel rather than separate channels. Retail segment Urban Outfitters: Urban Outfitters targets young adults aged 18 to 28 through a unique merchandise mix, compelling store environment, social media and third-party digital platforms, websites and mobile applications. The company has established a reputation with these young adults, who are culturally sophisticated, self-expressive and actively engaged with their peer group. The product offering includes women’s and men’s fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics and beauty. A large portion of the company’s merchandise is exclusive to Urban Outfitters, consisting of an assortment of products designed internally and designed in collaboration with third-party brands. Stores average approximately 9,000 square feet of selling space. The company’s stores are located in street locations in large metropolitan areas and select university communities, specialty centers and enclosed malls that accommodate its customers’ propensity not only to shop, but also to congregate with their peers. The company plans to open approximately 8 Urban Outfitters stores and close approximately 8 Urban Outfitters stores due to lease expiration, globally, in fiscal 2024. The company plans for future store growth to come from expansion domestically and internationally, which may include opening stores in new and existing markets or entering into additional franchise or joint venture agreements. Urban Outfitters operates websites and mobile applications in North America and Europe that capture the spirit of the brand by offering a similar yet broader selection of merchandise as found in its stores. The company plans for future digital channel growth to come from expansion domestically and internationally. Anthropologie Group. The Anthropologie Group consists of the Anthropologie and Terrain brands. The Anthropologie brand tailors its merchandise and inviting store environment to sophisticated and contemporary women aged 28 to 45. The Anthropologie brand’s unique and eclectic internally designed and third-party brand product assortment includes women’s apparel, accessories, intimates, shoes, home furnishings, a diverse array of gifts and decorative items and beauty and wellness. The brand also has a wedding collection consisting of wedding dresses, bridesmaid dresses, party dresses, bridal accessories and decor. A catalog is offered in North America that markets select merchandise, most of which is also available in Anthropologie brand stores. The Terrain brand is designed to appeal to women and men interested in a creative and sophisticated outdoor living and gardening experience. Terrain’s product offering includes lifestyle home, garden and outdoor living products, antiques, live plants, flowers, wellness products and accessories. The company’s stores are located in specialty centers, upscale street locations and enclosed malls. The company plans to open approximately 8 Anthropologie Group stores and close approximately 6 Anthropologie Group stores due to lease expiration, globally, in fiscal 2024. The company plans for future store growth to come from expansion domestically and internationally, which may include opening stores in new and existing markets or entering into additional franchise or joint venture agreements. The Anthropologie Group operates websites and mobile applications in North America and Europe that capture the spirit of its brands by offering a similar yet broader selection of merchandise as found in its stores, and offers a catalog in North America that markets select merchandise, most of which is also available in Anthropologie brand stores. The company plans for future digital channel growth to come from expansion domestically and internationally. Free People Group: The Free People Group consists of the Free People and FP Movement brands. The company’s Free People and FP Movement retail stores primarily offer private label merchandise targeted to young contemporary women aged 25 to 30. The Free People brand offers a unique merchandise mix of casual women’s apparel, intimates, FP Movement activewear, shoes, accessories, home products, gifts and beauty and wellness. The FP Movement brand offers performance-ready activewear, beyond-the-gym staples and wellness essentials. Retail stores average approximately 2,000 square feet of selling space. The company’s stores are located in enclosed malls, upscale street locations and specialty centers. The company plans for future store growth to come from expansion domestically and internationally, which may include opening stores in new and existing markets or entering into franchise or joint venture agreements. The Free People Group operates websites and mobile applications in North America and Europe that capture the spirit of the brand by offering a similar yet broader selection of merchandise as found in its stores, as well as substantially all of the Free People and FP Movement wholesale offerings. The Free People Group also offers catalogs that market select merchandise, most of which is also available in its Free People and FP Movement stores. The company plans for future digital channel growth to come from expansion domestically and internationally. Menus & Venues: The Menus & Venues brand focuses on a dining and event experience that provides excellence in food, beverage and service. Wholesale segment The Wholesale segment consists of the Free People, FP Movement and Urban Outfitters brands. The Wholesale segment was established with the Free People brand to develop, in conjunction with Urban Outfitters, private label apparel lines of young women’s casual wear that could be effectively sold in Urban Outfitters stores and later began selling to department and specialty stores worldwide. The Urban Outfitters wholesale division designs and sells the BDG and other own brand apparel collections to select department stores. The company displays its wholesale products in certain department stores using a shop-within-shop sales model. The Wholesale segment’s range of young women’s contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People brand and the BDG and other own brand apparel collections under the Urban Outfitters brand are sold through department and specialty stores worldwide, including Nordstrom, Dillard’s, digital businesses and the company’s Retail segment. The company monitors the styles and products that are popular with its wholesale customers to give it insight into fashion trends, helping it to better serve its retail customers. Nuuly segment Nuuly segment consists of the Nuuly brand, which includes Nuuly Rent and Nuuly Thrift. Nuuly Rent is a monthly women’s apparel subscription rental service. For a monthly fee, Nuuly subscribers can select rental product from a wide selection of the company’s own brands, third-party market brands and one-of-a-kind vintage pieces via a custom-built, digital platform. Subscribers select their products each month, wear them as often as they like and then swap into new products the following month. Subscribers are also able to purchase the rented product. Nuuly Thrift, which launched in October 2021, is a peer-to-peer resale marketplace where customers can buy and sell any brand of women’s, men’s and kids’ apparel, shoes and accessories from any brands. Sellers on Nuuly Thrift can transfer their earnings to their bank account or convert them to Nuuly Cash, a gift card with a bonus to be used at any of the company’s brands. Nuuly Thrift earns a commission based on sales made in the marketplace. Store Environment The company creates a unified environment in its stores that establishes an emotional bond with the customer. The company’s Urban Outfitters, Anthropologie Group and Free People Group stores are primarily located in upscale street locations, free-standing locations, enclosed malls and specialty centers. Buying and Design Operations The company maintains its own buying groups that select and develop products to satisfy its target customers and provides it with the appropriate amount and timing of products offered. The company’s buyers stay in touch with the evolving tastes of their target customers by shopping at major trade markets, attending national and regional trade shows and staying with mass media influences, including social media, music, video, film, magazines and pop culture. The company’s buyers and designers play an important role in its ability to identify and deliver the latest fashion trends to its customers. The success of the company’s brands relies upon its ability to attract, train and retain talented, highly motivated buying and design employees. Merchandise The company’s Urban Outfitters brand offers a wide array of eclectic merchandise, including women’s and men’s fashion apparel, activewear, intimates, footwear, accessories, home products, electronics and beauty. The company’s Anthropologie brand product offerings include women’s apparel, accessories, intimates, shoes, home furnishings, a diverse array of gifts and decorative items, beauty and wellness and a wedding collection consisting of wedding dresses, bridesmaid dresses, party dresses, bridal accessories and decor. The company’s Terrain brand product offerings include lifestyle home, garden and outdoor living products, antiques, live plants, flowers, wellness products and accessories. The company’s Free People brand offers a showcase for casual women’s apparel, intimates, FP Movement activewear, shoes, accessories, home products, gifts and beauty and wellness. The company’s FP Movement brand offers performance-ready activewear, beyond-the-gym staples and wellness essentials. The company’s Nuuly brand allows subscribers to select rental product from a wide selection of the company’s own brands, third-party market brands and one-of-a-kind vintage pieces. The company’s merchandise is continuously updated to appeal to its target customers’ changing tastes and is supplied by a large number of domestic and foreign vendors, with new shipments of merchandise arriving at its stores and fulfillment centers almost daily. The wide breadth of merchandise offered by the company’s brands includes a combination of national third-party brands, private label product designed in collaboration with third-party brands and exclusive merchandise developed and designed internally by its brands. This combination allows the company to offer fashionable merchandise and to differentiate its product mix from that of traditional department stores, as well as that of other specialty and digital retailers. The ever-changing mix of products available to the company’s customers allows it to adapt its merchandise to prevailing fashion trends, and together with the inviting atmosphere and experience of its stores, social media and third-party digital platforms, websites and mobile applications encourages its core customers to visit its shopping channels frequently. Store Operations The company has organized its retail store operations by brand into geographic areas or districts that each have a district leader. District leaders are responsible for several stores and monitor and supervise individual store leaders. Each store leader is responsible for overseeing the daily operations of one of the company’s stores. The company has a number of retention programs that offer qualitative and quantitative performance-based incentives to district-level leaders and store leaders. Customer Loyalty Programs Loyalty programs offer customers access to member-only benefits and rewards, which promotes brand loyalty. The Urban Outfitters brand offers UO Rewards, a customer loyalty program designed to create authentic, lasting relationships with customers by rewarding devoted members with reward coupons, exclusive offers and unique experiences. Members can earn and accumulate points based on purchase activity and engaging with the brand through social media. Upon reaching the specified point threshold, members are issued a reward coupon which can be redeemed for both in-store and online purchases. The Anthropologie brand offers AnthroPerks. AnthroPerks is a customer loyalty program that is designed to deliver benefits and experiences to help make the company’s customers’ shopping journey in-store and online easier and more inspirational. Members are given free shipping benefits, birthday discounts, receipt look up, exclusive offers, early access to special collections and invitations to Anthro Events experiences. In February 2021, the company began testing a paid loyalty program called UP. In exchange for an annual fee, UP provides membership benefits across the company’s entire portfolio of brands, including a gift card, free standard shipping and free returns on all orders, a discount on orders, early access to products and exclusive events and a discount on the monthly Nuuly subscription fee. The company plans to continue its test pilot through fiscal 2024. Distribution The company operates distribution and fulfillment centers worldwide to support its Retail and Wholesale segments in the United States, Europe and Canada, including the fulfillment of catalog, website and mobile application orders around the world. Trademarks and Service Marks The company is the registered owner in the United States of certain service marks and trademarks, including but not limited to Urban Outfitters, Anthropologie, Free People, Bhldn, Terrain, BDG, FP Movement, Nuuly and URBN. The company has pending registration applications with the U.S. Patent and Trademark Office covering certain other marks. The company also owns marks that have been registered in foreign countries, and has applications for marks pending in additional foreign countries. Seasonality The company’s business is subject to seasonal fluctuations in net sales and net income, with a more significant portion typically realized in the second half of each year (year ended January 2023) predominantly due to the year-end holiday period. Historically, and consistent with the retail industry, this seasonality also impacts its working capital requirements, particularly with regard to inventory. History Urban Outfitters, Inc. was founded in 1970. The company was incorporated in the Commonwealth of Pennsylvania in 1976.