Dive Brief:

• Urban Outfitters Q1 sales rose but were a disappointment at its two larger brands, Urban Outfitters and Anthropologie. Same-store sales rose 17% at the company’s Free People brand, its smallest, 5% at its namesake Urban Outfitters brand, and 1% at Anthropologie, a performance that the retailer called a "disappointment."

• Overall inventory rose 14%, and overall same-store sales rose 4%, missing analysts’ expectations for 5.3%. Discounting, plus expenses related to boosting e-commerce, were a drag on revenues, the company said. 

• The company also said that Tedford Marlow, CEO of the Urban Outfitters brand, will retire by the end of August.

Dive Insight:

Fast-fashion is apparently taking a bite out of Urban Outfitters, at least at its namesake brand, which is aimed at younger women. That brand has made efforts to make over its merchandise, including getting into the alth-leisure trend, but continues to introduce a tone-deaf merchandising controversy every few months or so. 

Urban Outfitters also cited costs related to its e-commerce business as a drag on revenues, which can add up once the cost of shipping, handling, and returns are factored in. Perhaps a new head at the Urban Outfitters brand will bring some much-needed guidance in this area.