URBAN OUTFITTERS INC

Previous wording

Certain matters contained in this filing with the United States Securities and Exchange Commission (“SEC”) may contain forward-looking statements and are being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. When used in this Quarterly Report on Form 10-Q, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, including geopolitical instability, impacts of the conflict in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises (such as the coronavirus (COVID-19)), labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs, border adjustment taxes or increases in duties or quotas), the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rate, changes in accounting standards and subjective assumptions, regulatory changes and legal matters and other risks identif…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Certain matters contained in this filing with the United States Securities and Exchange Commission (“SEC”) may contain forward-looking statements and are being made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. When used in this Quarterly Report on Form 10-Q, the words “project,” “believe,” “plan,” “will,” “anticipate,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any one, or all, of the following factors could cause actual financial results to differ materially from those financial results mentioned in the forward-looking statements: overall economic and market conditions (including current levels of inflation) and worldwide political events and the resultant impact on consumer spending patterns and our pricing power, the difficulty in predicting and responding to shifts in fashion trends, changes in the level of competitive pricing and promotional activity and other industry factors, the effects of the implementation of the United Kingdom's withdrawal from membership in the European Union (commonly referred to as “Brexit”), including currency fluctuations, economic conditions and legal or regulatory changes, any effects of war, including geopolitical instability, impacts of the conflict in the Middle East and impacts of the war between Russia and Ukraine and from related sanctions imposed by the United States, European Union, United Kingdom and others, terrorism and civil unrest, natural disasters, severe or unseasonable weather conditions (including as a result of climate change) or public health crises (such as the coronavirus (COVID-19)), labor shortages and increases in labor costs, raw material costs and transportation costs, availability of suitable retail space for expansion, timing of store openings, risks associated with international expansion, seasonal fluctuations in gross sales, response to new concepts, our ability to integrate acquisitions, risks associated with digital sales, our ability to maintain and expand our digital sales channels, any material disruptions or security breaches with respect to our technology systems, our effective utilization of technological advancements, including in artificial intelligence, the departure of one or more key senior executives, import risks (including any shortage of transportation capacities or delays at ports), changes to U.S. and foreign trade policies (including the enactment of tariffs such as retaliatory tariffs), border adjustment taxes or increases in duties or quotas, the unexpected closing or disruption of, or any damage to, any of our distribution centers, our ability to protect our intellectual property rights, failure of our manufacturers and third-party vendors to comply with our social compliance program, risks related to environmental, social and governance activities, changes in our effective income tax rat…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We operate under three reportable segments – Retail, Nuuly and Wholesale. Our Retail segment includes our Anthropologie, Free People, FP Movement and Urban Outfitters brands. Our Retail segment consumer products and services are sold directly to our customers through our retail locations, websites, mobile applications, social media and third-party digital platforms, catalogs and customer contact centers and franchisee-owned stores. Our Nuuly segment includes the Nuuly brand, which offers customers a more sustainable way to explore fashion primarily through a monthly women’s apparel subscription rental service. Our Wholesale segment primarily designs, develops and markets apparel, intimates, activewear and shoes. Our Wholesale segment includes our Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, digital businesses and our Retail segment.

Current wording

We operate under three reportable segments – Retail, Subscription and Wholesale. Our Retail segment primarily includes our Anthropologie, Free People, FP Movement and Urban Outfitters brands. Our Retail segment products and services are sold directly to our customers through our retail locations, websites, mobile applications, social media and third-party digital platforms, catalogs and customer contact centers and franchisee-owned stores. Our Subscription segment includes the Nuuly brand, which offers customers a more sustainable way to explore fashion primarily through a monthly women’s apparel subscription rental service. Our Wholesale segment includes our Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, digital businesses and our Retail segment. Our Wholesale segment primarily designs, develops and markets apparel, intimates, activewear and shoes.

Previous wording

Our Retail segment omni-channel strategy enhances our customers’ brand experience by providing a seamless approach to the customer shopping experience. All Company-owned Retail segment shopping channels are closely integrated, including retail locations, websites, mobile applications, catalogs and customer contact centers. Our 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. We manage and analyze our performance based on a single Retail segment omni-channel rather than separate channels and believe that the Retail segment omni-channel results present the most meaningful and appropriate measure of our performance.

Current wording

Our Retail segment omni-channel strategy enhances our customers’ brand experience by providing a seamless approach to the customer shopping experience. All Company-owned Retail segment shopping channels are closely integrated, including retail locations, websites, mobile applications, social media and third-party platforms, catalogs and customer contact centers. Our 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. We manage and analyze our performance based on a single Retail segment omni-channel rather than separate channels and believe that the Retail segment omni-channel results present the most meaningful and appropriate measure of our performance.

Previous wording

Net sales from the Retail segment accounted for approximately 87.9% of consolidated net sales for the nine months ended October 31, 2024, compared to 90.3% for the comparable period in fiscal 2024.

Current wording

Net sales from the Retail segment accounted for approximately 85.0% of consolidated net sales for the three months ended April 30, 2025, compared to 88.5% for the comparable period in fiscal 2025.

Previous wording

The Anthropologie brand tailors its merchandise to sophisticated and contemporary women aged 28 to 45. The internally designed and third-party branded 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, bridesmaid and party dresses, bridal accessories and decor. The Terrain brand is designed to appeal to women and men interested in a creative and sophisticated outdoor living and gardening experience. Merchandise includes lifestyle home, garden and outdoor living products, antiques, live plants, flowers, wellness products and accessories. Anthropologie stores are located in specialty centers, upscale street locations and enclosed malls. Anthropologie 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, offers catalogs in North America that markets select merchandise, most of which is also available in Anthropologie brand stores and sells merchandise through franchisee-owned stores in the Middle East. Anthropologie's North American Retail segment net sales accounted for approximately 41.4% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 40.9% for the comparable period in fiscal 2024. European Retail segment net sales accounted for approximately 1.6% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 1.5% for the comparable period in fiscal 2024.

Current wording

The Anthropologie brand tailors its merchandise and inviting store environment to sophisticated and contemporary women aged 28 to 45. The internally designed and third-party brand product assortment includes women’s apparel, accessories, intimates, shoes, furniture, home decor and beauty and wellness. The brand also has a bridal collection consisting of wedding, bridesmaid and party dresses, accessories and decor. The Terrain brand is designed to appeal to women and men interested in a creative and sophisticated outdoor living and gardening experience. Merchandise includes lifestyle home, garden and outdoor living products, antiques, live plants, flowers, wellness products and accessories. Anthropologie stores are located in specialty centers, upscale street locations and enclosed malls. Anthropologie operates websites and mobile applications that capture the spirit of its brands by offering a similar yet broader selection of merchandise as found in its stores, offers catalogs in North America that markets select merchandise, most of which is also available in Anthropologie brand stores and sells merchandise through franchisee-owned stores in the Middle East. Anthropologie's North American Retail segment net sales accounted for approximately 48.6% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 47.8% for the comparable period in fiscal 2025. European Retail segment net sales accounted for approximately 1.8% of total Retail segment net sales for both the three months ended April 30, 2025, and the comparable period in fiscal 2025.

Previous wording

The Free People brand focuses its product offering on private label merchandise targeted to young contemporary women aged 25 to 30 and provides a unique merchandise mix of casual women’s apparel, intimates, 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. Free People stores are located in enclosed malls, upscale street locations and specialty centers. Free People 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, as well as substantially all of the Free People and FP Movement brands’ wholesale offerings. Free People also offers catalogs that market select merchandise, most of which is also available in our Free People stores. Free People's North American Retail segment net sales accounted for approximately 20.8% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 20.0% for the comparable period in fiscal 2024. European Retail segment net sales accounted for approximately 1.1% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 1.0% for the comparable period in fiscal 2024.

Current wording

The Free People brand focuses its product offering on private label merchandise targeted to young contemporary women aged 25 to 30 and provides a unique merchandise mix of casual women’s apparel, intimates, 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. Free People stores are located in enclosed malls, upscale street locations and specialty centers. Free People operates websites and mobile applications that capture the spirit of its brands 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 brands’ wholesale offerings. Free People also offers catalogs that market select merchandise, most of which is also available in our Free People stores. Free People's North American Retail segment net sales accounted for approximately 23.8% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 23.6% for the comparable period in fiscal 2025. European Retail segment net sales accounted for approximately 1.3% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 1.2% for the comparable period in fiscal 2025.

Previous wording

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 and a product offering that includes women’s and men’s fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics and beauty. A large portion of our merchandise is exclusive to Urban Outfitters, consisting of an assortment of products designed internally or designed in collaboration with third-party brands. Urban Outfitters stores are in street locations in large metropolitan areas and select university communities, specialty centers and enclosed malls that accommodate our customers’ propensity not only to shop, but also to congregate with their peers. 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 and sells merchandise through franchisee-owned stores in the Middle East. Urban Outfitters’ North American Retail segment net sales accounted for approximately 14.4% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 18.0% for the comparable period in fiscal 2024. European Retail segment net sales accounted for approximately 7.9% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 8.2% for the comparable period in fiscal 2024.

Current wording

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 and a product offering that includes women’s and men’s fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics and beauty. A large portion of our merchandise is exclusive to Urban Outfitters, consisting of an assortment of products designed internally or designed in collaboration with third-party brands. Urban Outfitters stores are located in street locations in large metropolitan areas and select university communities, specialty centers and enclosed malls that accommodate our customers’ propensity not only to shop, but also to congregate with their peers. Urban Outfitters operates websites and mobile applications that capture the spirit of the brand by offering a similar yet broader selection of merchandise as found in its stores and sells merchandise through franchisee-owned stores in the Middle East. Urban Outfitters’ North American Retail segment net sales accounted for approximately 14.8% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 16.8% for the comparable period in fiscal 2025. European Retail segment net sales accounted for approximately 8.9% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 8.2% for the comparable period in fiscal 2025.

Previous wording

Store data for the nine months ended October 31, 2024 was as follows:

Current wording

Store data for the three months ended April 30, 2025 was as follows:

Previous wording

Our Nuuly segment includes the Nuuly brand, which is primarily a monthly women’s apparel subscription rental service. For a monthly fee, Nuuly subscribers can rent product from a wide selection of the Company’s own brands, third-party 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 rental product. Our Nuuly segment net sales accounted for approximately 6.8% of consolidated net sales for the nine months ended October 31, 2024, compared to approximately 4.7% for the comparable period in fiscal 2024.

Current wording

Our Subscription segment includes the Nuuly brand, which is primarily a monthly women’s apparel subscription rental service. For a monthly fee, Nuuly subscribers can rent product from a wide selection of the Company’s own brands, third-party 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 rental product. Our Subscription segment net sales accounted for approximately 9.4% of consolidated net sales for the three months ended April 30, 2025, compared to approximately 6.5% for the comparable period in fiscal 2025.

Previous wording

Our Wholesale segment includes the Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, third-party digital businesses and our Retail segment. The Wholesale segment primarily designs, develops and markets young women’s contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People and FP Movement brands and the BDG and “iets frans” apparel collections under the Urban Outfitters brand. Our Wholesale segment net sales accounted for approximately 5.3% of consolidated net sales for the nine months ended October 31, 2024, compared to 5.0% for the comparable period in fiscal 2024.

Current wording

Our Wholesale segment includes the Free People, FP Movement and Urban Outfitters brands that sell through department and specialty stores worldwide, third-party digital businesses and our Retail segment. The Wholesale segment primarily designs, develops and markets young women’s contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People and FP Movement brands and the BDG and “iets frans” apparel collections under the Urban Outfitters brand. Our Wholesale segment net sales accounted for approximately 5.6% of consolidated net sales for the three months ended April 30, 2025, compared to 5.0% for the comparable period in fiscal 2025.

Previous wording

Our significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the Notes to our Consolidated Financial Statements for the fiscal year ended January 31, 2024, which are included in our Annual Report on Form 10-K filed with the SEC on April 1, 2024. Critical accounting policies are those that are most important to the portrayal of our financial condition, results of operations and cash flows and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. If actual results were to differ significantly from estimates made, the reported results could be materially affected. We are not currently aware of any reasonably likely events or circumstances that would cause our actual results to be materially different from our estimates. There have been no significant changes to our critical accounting policies during the nine months ended October 31, 2024.

Current wording

Our significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the Notes to our Consolidated Financial Statements for the fiscal year ended January 31, 2025, which are included in our Annual Report on Form 10-K filed with the SEC on April 1, 2025. Critical accounting policies are those that are most important to the portrayal of our financial condition, results of operations and cash flows and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. If actual results were to differ significantly from estimates made, the reported results could be materially affected. We are not currently aware of any reasonably likely events or circumstances that would cause our actual results to be materially different from our estimates. There have been no significant changes to our critical accounting policies during the three months ended April 30, 2025.

Previous wording

Net sales for the third quarter of fiscal 2025 were $1.36 billion, compared to $1.28 billion in the third quarter of fiscal 2024. The $80.7 million increase was attributable to a $36.8 million, or 3.2%, increase in Retail segment net sales, a $31.7 million, or 48.4%, increase in Nuuly segment net sales and a $12.2 million, or 17.4%, increase in Wholesale segment net sales.

Current wording

Net sales for the first quarter of fiscal 2026 were $1.33 billion, compared to $1.20 billion in the first quarter of fiscal 2025. The $128.8 million increase was attributable to a $67.8 million, or 6.4%, increase in Retail segment net sales, a $46.4 million, or 59.5%, increase in Subscription segment net sales and a $14.5 million, or 24.2%, increase in Wholesale segment net sales.

Previous wording

The increase in our Retail segment net sales during the third quarter of fiscal 2025 was due to an increase of $19.4 million in non-comparable net sales and an increase of $17.4 million, or 1.5%, in Retail segment comparable net sales. Retail segment comparable net sales increased 5.8% at Anthropologie and 5.3% at Free People and decreased 8.9% at Urban Outfitters. Retail segment comparable net sales increased in both North America and Europe. The overall increase in Retail segment comparable net sales was driven by low single-digit positive growth in both digital channel net sales and retail store net sales. The digital channel comparable net sales increase was driven by increases in sessions and units per transaction, while average order value decreased. Comparable store net sales increased as a result of higher store traffic and transactions, while conversion rate and units per transaction decreased. The increase in non-comparable net sales during the third quarter of fiscal 2025 was primarily due to the impact of the 23 net new Company-owned stores and restaurants opened since the prior comparable period and the positive impact of foreign currency translation.

Current wording

The increase in our Retail segment net sales during the first quarter of fiscal 2026 was due to an increase of $49.5 million, or 4.8%, in Retail segment comparable net sales and an increase of $18.3 million in non-comparable net sales. Retail segment comparable net sales increased 6.9% at Anthropologie, 3.1% at Free People and 2.1% at Urban Outfitters. Retail segment comparable net sales increased in both North America and Europe. The overall increase in Retail segment comparable net sales was driven by mid single-digit positive growth in both retail store net sales and digital channel net sales. Comparable store net sales increased as a result of higher store traffic, transactions and conversion rate, while average unit retail decreased. The digital channel comparable net sales increase was driven by increases in sessions, conversion rate and units per transaction, while average order value decreased. The increase in non-comparable net sales during the first quarter of fiscal 2026 was primarily due to the impact of the 38 net new Company-owned stores opened since the prior comparable period.

Previous wording

The increase in Nuuly segment net sales was primarily driven by a 51.2% increase in the average number of active subscribers in the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024. The increase in Wholesale segment net sales in the third quarter of fiscal 2025 was driven by a $13.1 million, or 20.3%, increase in Free People wholesale net sales due to an increase in net sales to specialty customers and department stores, partially offset by a $0.9 million decrease in Urban Outfitters wholesale net sales.

Current wording

The increase in Subscription segment net sales was primarily driven by a 52.9% increase in the average number of active subscribers in the first quarter of fiscal 2026 as compared to the first quarter of fiscal 2025. The increase in Wholesale segment net sales in the first quarter of fiscal 2026 was driven by a $14.3 million, or 25.6%, increase in Free People wholesale net sales due to an increase in net sales to specialty customers and department stores.

Previous wording

Total inventory at October 31, 2024, as compared to October 31, 2023, increased by $72.3 million, or 10.0%, to $793.3 million. Total Retail segment inventory increased by 8.1% due to a Retail segment comparable inventory increase of 3.7% and planned early receipts of holiday merchandise. Wholesale segment inventory increased by 41.6% due to the timing of receipts and to support increased net sales.

Current wording

Total inventory at April 30, 2025, as compared to April 30, 2024, increased by $84.8 million, or 14.6%, to $663.8 million. Total Retail segment inventory increased 13.2% and Retail segment comparable inventory increased 12.6%. Wholesale segment inventory increased 30.6%. The increase in inventory for both segments was due to increased net sales and early receipts of merchandise.

Previous wording

Selling, general and administrative expenses increased by $23.2 million, or 6.7%, in the third quarter of fiscal 2025, compared to the third quarter of fiscal 2024. Selling, general and administrative expenses as a percentage of net sales increased in the third quarter of fiscal 2025 to 27.1% of net sales, compared to 27.0% of net sales for the third quarter of fiscal 2024. The deleverage in selling, general and administrative expenses as a percentage of net sales was primarily related to increased marketing expenses to support growth in our customer base and increased net sales in the Retail and Nuuly segments. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support growth in our customer base and increased net sales in the Retail and Nuuly segments, as well as increased store payroll expenses to support the Retail segment stores comparable net sales growth.

Current wording

Selling, general and administrative expenses increased by $27.1 million, or 8.1%, in the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. Selling, general and administrative expenses as a percentage of net sales decreased in the first quarter of fiscal 2026 to 27.2% of net sales, compared to 27.8% of net sales in the first quarter of fiscal 2025. The leverage in selling, general and administrative expenses as a percentage of net sales was primarily related to lower litigation expenses in the current year quarter as compared to the prior year quarter. The dollar growth in selling, general and administrative expenses was primarily related to increased marketing expenses to support customer growth and increased sales in the Retail and Subscription segments, as well as increased store payroll expenses to support the Retail segment stores net sales growth.

Previous wording

Income from operations was 9.4% of net sales, or $128.7 million, for the third quarter of fiscal 2025 compared to 8.5% of net sales, or $109.0 million, for the third quarter of fiscal 2024. The increase in operating income dollars was primarily driven by the increase in gross profit dollars. The increase in operating income rate was primarily driven by the improved gross profit rate.

Current wording

Income from operations was 9.6% of net sales, or $128.2 million, for the first quarter of fiscal 2026 compared to 6.2% of net sales, or $74.6 million, for the first quarter of fiscal 2025. The increase in operating income dollars was primarily driven by the increase in gross profit dollars. The increase in operating income rate was primarily driven by the improved gross profit rate.

Previous wording

Our effective tax rate for the third quarter of fiscal 2025 was 24.2% compared to 24.3% in the third quarter of fiscal 2024. The decrease in the effective tax rate for the three months ended October 31, 2024 was primarily due to the favorable impact of equity awards that vested in the current year quarter.

Current wording

Our effective tax rate for the first quarter of fiscal 2026 was 21.4%, compared to 23.6% in the first quarter of fiscal 2025. The decrease in the effective tax rate for the three months ended April 30, 2025, was primarily attributable to the ratio of foreign taxable earnings to global taxable earnings.

Previous wording

The following tables set forth certain balance sheet and cash flow data for the periods indicated. These tables should be read in the conjunction with the discussion that follows:

Current wording

The following tables set forth certain balance sheet and cash flow data for the periods indicated. These tables should be read in conjunction with the discussion that follows:

Previous wording

The increase in working capital as of October 31, 2024, as compared to January 31, 2024, was primarily due to the seasonal increase in inventory and an increase in cash, cash equivalents and current marketable securities, partially offset by the timing of disbursements. The increase in working capital as of October 31, 2024, as compared to October 31, 2023, was primarily due to an increase in inventory and an increase in cash, cash equivalents and current marketable securities, partially offset by the timing of disbursements.

Current wording

The decrease in working capital as of April 30, 2025, as compared to January 31, 2025, was primarily due to a decrease in cash, cash equivalents and current marketable securities due in large part to the repurchases of our common shares under our share repurchase program, partially offset by the timing of disbursements and an increase in inventory. The increase in working capital as of April 30, 2025, as compared to April 30, 2024, was primarily due to an increase in inventory.

Previous wording

During the last two years, we have satisfied our cash requirements primarily through our cash flow from operating activities. Our primary uses of cash have been to fund business operations, purchase inventory and rental product, expand and improve our fulfillment centers, open new stores and repurchase our common shares.

Current wording

During the last two years, we have satisfied our cash requirements primarily through our cash flow from operating activities and through the sales and maturities of marketable securities. Our primary uses of cash have been to fund business operations, purchase inventory and rental product, repurchase our common shares, open new stores and expand and improve our distribution network.

Previous wording

Our major source of cash from operations was merchandise sales and our primary outflow of cash from operations was for the payment of operational costs. The decrease in cash provided by operating activities in the first nine months of fiscal 2025 compared to the first nine months of fiscal 2024 was primarily due to higher inventory purchases in the first nine months of fiscal 2025 due in part to planned early receipts of holiday merchandise for the Retail segment and timing of receipts for the Wholesale segment.

Current wording

Our major source of cash from operations was merchandise sales and our primary outflow of cash from operations was for the payment of operational costs. The decrease in cash provided by operating activities in the first three months of fiscal 2026 compared to the first three months of fiscal 2025 was primarily due to the timing of disbursements, partially offset by higher net income in the first three months of fiscal 2026 compared to the first three months of fiscal 2025.

Previous wording

Cash used in investing activities in the first nine months of fiscal 2025 primarily related to purchases of marketable securities and property and equipment, partially offset by the sales and maturities of marketable securities. Cash used in investing activities in the first nine months of fiscal 2024 primarily related to purchases of marketable securities, property and equipment and the initial cash payment for a tax credit investment, partially offset by the sales and maturities of marketable securities. Cash paid for property and equipment in the first nine months of fiscal 2025 and 2024 was $144.1 million and $151.0 million, respectively, which was primarily used to expand our fulfillment center network and store base in both periods.

Current wording

Cash provided by investing activities in the first three months of fiscal 2026 primarily related to the sales and maturities of marketable securities, partially offset by the purchases of marketable securities and property and equipment. Cash used in investing activities in the first three months of fiscal 2025 primarily related to purchases of marketable securities and property and equipment, partially offset by the sales and maturities of marketable securities. Cash paid for property and equipment in the first three months of fiscal 2026 and 2025 was $46.2 million and $41.1 million, respectively, which was primarily used to expand our store base in the first three months of fiscal 2026 and to expand our distribution network and store base in the first three months of fiscal 2025.

Previous wording

Cash used in financing activities in the first nine months of fiscal 2025 primarily related to repurchases of our common shares under our share repurchase program and from employees to meet payroll tax withholding requirements on vested share-based awards. Cash used in financing activities in the first nine months of fiscal 2024 primarily related to repurchases of our common shares from employees to meet payroll tax withholding requirements on vested share-based awards.

Current wording

Cash used in financing activities in the first three months of fiscal 2026 primarily related to repurchases of our common shares under our share repurchase program and from employees to meet payroll tax withholding requirements on vested share-based awards. Cash used in financing activities in the first three months of fiscal 2025 primarily related to repurchases of our common shares from employees to meet payroll tax withholding requirements on vested share-based awards.

Previous wording

During fiscal 2025, we plan to open approximately 58 new Company-owned retail locations, expand or relocate certain existing retail locations, invest in new products, markets and brands, purchase inventory and rental product for our operating segments at levels appropriate to maintain our planned sales volumes, upgrade our systems, improve and expand our digital capabilities, invest in omni-channel marketing when appropriate and repurchase our common shares. Additionally, in the first quarter of fiscal 2025, we opened a new Nuuly fulfillment center in Raymore, Missouri in response to the growth in the number of Nuuly subscribers. We believe that our new brand initiatives, new store openings, merchandise expansion programs, international growth opportunities and our marketing, social media, website and mobile initiatives are significant contributors to our sales growth and plan to continue our investment in these initiatives for all brands. We anticipate our capital expenditures during fiscal 2025 will be approximately $210 million, primarily to support new store openings and new and expanded fulfillment and distribution centers. All fiscal 2025 capital expenditures are expected to be financed by cash flow from operating activities and existing cash and cash equivalents. We believe that our new store investments generally have the potential to generate positive cash flow within a year. We may also enter into one or more acquisitions or transactions related to the expansion of our brand offerings, including additional franchise and joint venture agreements. We believe that our existing cash and cash equivalents, availability under our current credit facilities and future cash flows provided by operations will be sufficient to fund these initiatives.

Current wording

During fiscal 2026, we plan to open approximately 64 new Company-owned retail locations, expand or relocate certain existing retail locations, expand our home office to support our growing business, invest in our distribution network, invest in new products, markets and brands, purchase inventory and rental product for our operating segments at levels appropriate to maintain our planned sales volumes, upgrade our systems, improve and expand our digital capabilities, invest in omni-channel marketing when appropriate and repurchase our common shares. We believe that our new brand initiatives, new store openings, merchandise expansion programs, international growth opportunities and our marketing, social media, website and mobile initiatives are significant contributors to our sales growth and plan to continue our investment in these initiatives for all brands. We anticipate our capital expenditures during fiscal 2026 will be approximately $240 million primarily related to retail store expansion and support, technology and distribution network investments and home office expansion to support our growing business. All fiscal 2026 capital expenditures are expected to be financed by cash flow from operating activities and existing cash and cash equivalents.