Source: Barron's
Revenue growth has been stagnant for retailers, while margins have been under pressure. For the quarter-ended October 2019, Urban Outfitters (URBN) reported revenue of $987 million, up 1% Y/Y. I thought this was solid, given the 3% revenue decline for the July quarter. However, sales growth came at the expense of shrinking margins. Gross margin was 32.5%, down over 200 basis points versus the year-earlier period. Gross profit of $321 million fell 5% Y/Y.
Though its revenue declined for the July quarter, the company's inventory actually increased by $64 million to