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May 03
Zumiez Q1 2025 Earnings Report
Zumiez reported a decrease in net sales but an improvement in net loss for the first quarter of fiscal year 2024, exceeding initial outlook.
Key Takeaways
Zumiez Inc. announced its fiscal 2024 first quarter results, with net sales decreasing by 3.0% to $177.4 million compared to the prior year. Despite the sales decline, the company reported a net loss of $16.8 million, an improvement from the $18.4 million net loss in the same period last year. This performance exceeded their initial outlook, driven by positive inflection in North America and improved merchandise margins in Europe.
Net sales for Q1 2024 decreased by 3.0% to $177.4 million compared to $182.9 million in Q1 2023.
Net loss improved to $16.8 million ($0.86 loss per diluted share) in Q1 2024, from $18.4 million ($0.96 loss per diluted share) in Q1 2023.
Cash and current marketable securities stood at $146.6 million as of May 4, 2024.
The company's North American region showed positive inflection in the first quarter, and improved full-priced selling in Europe expanded merchandise margins.
Zumiez
Zumiez
Forward Guidance
For the second quarter of fiscal 2024, Zumiez projects net sales to be between $199 million and $204 million, with an expected loss per share ranging from $0.30 to $0.40. The company plans to open approximately 10 new stores in fiscal 2024.
Positive Outlook
- Projected net sales for Q2 2024 are between $199 million and $204 million.
- Company expects to open approximately 10 new stores in fiscal 2024.
- New store openings include up to 3 in North America, 3 in Europe, and 4 in Australia.
- Board approved a new stock repurchase authorization of up to $25 million of common stock.
- The repurchase program is expected to continue through June 30, 2025.
Challenges Ahead
- Expected loss per share for Q2 2024 is between $0.30 and $0.40.
- Overall sales remained under pressure in Q1 despite sequential improvement.
- The company still has significant work to do to return to historic levels of sales and profitability.