URBN - Does This Retailer Have an Inventory Problem or Margin Problem?
As high demand and COVID-19-related shutdowns snarled the global supply chain, Urban Outfitters (NASDAQ: URBN) was able to get the inventory it thought it needed. Now, inventory at the company is at an all-time high. Inflation or a slowing economy could cause one of two problems for the retail apparel maker. Here's what it means for investors.
Though the initial onset of the COVID pandemic was scary for everyone, the Federal Reserve decreased interest rates, and stimulus checks were sent out to help avoid a financial Armageddon. In addition, stay-at-home restrictions left folks with extra cash that would normally be spent on things like dining out or traveling. The situation fueled consumer demand later in 2020 and 2021.
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Does This Retailer Have an Inventory Problem or Margin Problem?