Urban Outfitters beats on revenue outlook but misses on profit

Investing.com -- Urban Outfitters (NASDAQ:URBN) missed Wall Street's expectations for earnings but beat the outlook on revenue in the third quarter.

The fashion retailer reported third quarter earnings per share of 40 cents on revenue of $1.18 billion. Analysts expected EPS of 42 cents on revenue of $1.16B.

The shares were up 1.2% in after-hours trading. They have fallen 13% so far this year.

Sales rose 3.9% over last year's third quarter to a record, the company said. In a press release, Urban Outfitters said total retail segment net sales increased 2%, with comparable retail segment net sales rising 4% though partially offset by a 2% negative impact from foreign currency translation.

As of Oct. 31, total inventory was up $116.5 million, or 18.6%, on a year-over-year basis, the company said. Retail segment inventory increased by 17% driven by higher costs, earlier than planned receipts due to improved supply chain speed, and excess slower selling product in certain categories, it added.