Urban Outfitters (URBN) shares were down as much as 14% during Tuesday's session despite record sales and earnings per share for the company's latest quarter. The clothing retailer's management said "lack of inventory in the first half of the quarter negatively impacted store sales."
"Although we're certainly pleased with record results, we are confident that a myriad of supply chain problems throughout the quarter held back both top and bottom-line results," Frank J. Conforti, co-president and COO, said during the company's earnings call.
"Lack of new receipts to depressed sales most in August and September," added Conforti.
Urban Outfitters posted record net sales of $1.13 billion, and earnings of 89 cents per share for the 3-month period ending October 31, 2021.
Urban Outfitters' comparable retail net sales increased 16%, with double-digit growth in digital sales, partially offset by low double-digit negative retail store sales. The reduced store traffic stemmed from temporary closures and occupancy restrictions in Europe and Canada.
The company noted "increases in carrier costs per package and the increased penetration of the digital channel," in its earnings release.
Year-to-date the stock is up 25%.