URBN - Urban Outfitters' record sales overshadowed by inflation inventory concerns

Record-setting sales for Urban Outfitters (NASDAQ:URBN -7.9%) was not enough to overcome inflationary headwinds. For the first quarter, the Philadelphia-based apparel retailer reported GAAP EPS of $0.33, missing estimates by $0.09, alongside revenue of $1.05 billion that came up $20 million short of expectations. While the revenue figure was noted as a record for the company, higher costs related to materials and transportation tempered profitability.  “Unfortunately, the impact of inflation on our costs of doing business more than offset the benefit of record revenues,” CEO Richard Hayne lamented. In a common refrain for retailers of late, inventory also grew significantly in the quarter. As of April 30, total inventory increased by $152.2 million, 31.9% above prior year levels, while comparable inventory at cost increased by 35%. Management blamed higher inbound transportation expenses and materials costs, ongoing global supply chain constraints, and slowing sales for the inflated inventory figures. Elsewhere, the

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Urban Outfitters’ record sales overshadowed by inflation, inventory concerns