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Investing.com — Urban Outfitters reported Tuesday quarterly results that missed on the bottom line as margins were hurt by bloated inventory levels that led to higher markdowns.
Urban Outfitters (NASDAQ:URBN) fell more than 2% following the report.
The retailer reported earnings of 64 cents on revenue of $1.18 billion, compared with estimates for 69 cents on revenue of $1.18 billion.
The miss on the bottom line comes as gross profit rate decreased by 407 basis points compared to the prior year’s comparable period, driven by higher markdowns,
The retailer front loaded inventory to circumvent higher inbound transportation costs and a volatile supply chain.
Inventory increased by $214.3 million, or 44.4%, on a year-over-year basis.
