Richard Hayne

Terrain has seen a strong uptick in brand awareness and direct-to-consumer traffic from their inclusion in the Anthropologie Group.

Like Free People, the Urban brand is planning to grow by expanding product assortments, expanding the brand reach and by improved marketing.

At a mall you can almost get frostbite, it's so boring. Looking different is worth a lot.

No two of our stores are the same.

The Anthropologie brand continues to succeed in emotionally engaging its customers while delivering strong financial results.

Repositioning a brand is never easy and rarely without pain. I believe the Urban brand is making the necessary changes that will allow it to more fully engage its traditional customer and return to solid profitability.

I invite you all to visit our new Harold Square or Space 98 stores in New York. I think you'll agree with me that these stores have a distinct Urban Outfitters personality, with fresh, exciting product and an experience that resonates with the 18 to 28 year old urban-dwelling customer.

For many years, we have repeated that the direct-to-consumer channel is growing and capturing a larger share of our customers' wallet.

While stores continue to be a very important part of our business, there is no mistaking the fact that the customers' shopping preference, measured by both traffic and sales, continues to move to a virtual experience.

The Free People brand plans to drive growth on three different fronts: product expansion, geographic expansion and improved marketing.

Over time, demand from Registry should help support the home product expansion initiative and vice-versa.

Quite frankly, the Urban brand organization became too siloed, with too little communication across functional areas. The great creativity that has been the hallmark of our success became stifled.

If we go and see hundreds of different market resources, you are seeing hundreds of different points of view, and once in a while, my experience is, you will come across one or two that are just outstanding, and you never would have thought of them.

In the direct-to-consumer channel, we continue to look at the entire world as an extension opportunity for all of our brands.

Each brand leader is focused on ensuring that the brand relationship with its customer is strong and differentiated. To accomplish this differentiation, we plan to offer her even more unique product and talk with her in new and exciting ways.

At URBN, we see ourselves as customer specialists, a collection of brands, each one specializing in one particular customer group, a particular lifestyle or a life stage. We offer her things she wants in environments that inspire her. We talk to her and listen to her ideas and opinions.

We have a relationship with our customer, and that relationship translates into sales.

I would never and did not ever characterize myself as a hippie.

Going forward, we are mindful of the challenges we face in the competitive retail landscape, but we have demonstrated that our concept of building compelling brands that focus on the customers' lifestyles can produce superior results. We will not waver from that concept.

We have built brands that resonate deeply with our customers. Our strategy to grow these brands is clear, and we have strong teams in place to execute this strategy. That is our formula for success.

We must permeate the stores with creativity and offer service when and to the degree the customer wants it. Of course, it means offering all the omni bells and whistles they want, like in-store pickup, same-day delivery, and mobile point of sale, and all of this must be done every hour of every day the store is open.

For a suburban man aged 30 to 40, hell is going clothing shopping on a Saturday afternoon. There are about 5,000 other things they would put on the list ahead of clothes shopping.

Our job as a business is not to promote a political agenda. That's not what we do.

In Asia, Free People, along with World Co., Ltd. of Japan, will launch a shop in Shinjuku and a freestanding store and wholesale showroom in Harajuku.

The store experience must become a performance, with the energy and precision of a Broadway play.