Zumiez Q4 net sales drop 19.2 percent

Zumiez Inc. net sales for the fourth quarter decreased 19.2 percent to 280.1 million dollars, while net income was 11.4 million dollars or 59 cents per diluted share compared to 38.2 million dollars or 1.70 dollars per diluted share, in the fourth quarter of the prior fiscal year.

Total net sales for the twelve months decreased 19 percent to 958.4 million dollars and net income for fiscal 2022 was 21 million dollars or 1.08 dollars per diluted share, compared to 119.3 million dollars or 4.85 dollars per diluted share last year.

Commenting on the trading update, Rick Brooks, chief executive officer of Zumiez Inc., stated: “We concluded a challenging fiscal 2022 with fourth quarter results that were ahead of our guidance, but below year ago levels. While the operating environment has been difficult and our recent financial performance disappointing, our commitment to serving consumers with world class service and highly differentiated, sought-after merchandise, is as strong as ever and has the business positioned to recover quickly when the macroeconomic conditions improve.”

To date, first quarter sales for the 35 days ended March 4, 2023 decreased 15.5 percent, while comparable sales for the period decreased 16.6 percent from the comparable period in the prior year.

The company is projecting net sales to be in the range of 178 dollars to 184 million dollars for fiscal 2023 and earnings per share to be between a loss of 85 cents and 95 cents.

The company currently intends to open approximately 23 new stores in fiscal 2023, including up to eight stores in North America, 10 stores in Europe and five stores in Australia.