Zumiez reports Q1 loss, net sales drop by 20.9 percent

Zumiez Inc. net sales decreased 20.9 percent to 220.7 million dollars for the first quarter ended April 30, 2022. Compared to the pre-pandemic first quarter, net sales for the quarter increased 3.6 percent.

Net loss was 0.4 million dollars or loss of 2 cents per diluted share compared to net income of 26.4 million dollars or 1.03 dollars per diluted share, in the first quarter of the prior fiscal year. Net income for the first quarter of 2019 was 0.8 million dollars or 3 cents per diluted share.

Commenting on the results, Rick Brooks, chief executive officer of Zumiez Inc., stated in a release: “As forecasted, the first quarter was meaningfully impacted by the anniversary of record U.S. stimulus in early 2021 as well as the impacts of inflation and overall competition for the discretionary dollar. On the expense side we experienced some headwinds in the first quarter of this year around labour, shipping and logistics costs as well as a shift in timing of certain marketing and training investments that resulted in us missing our EPS guidance.”

The company said, net sales for the four-week period ended May 28, 2022 decreased 20.9 percent and increased 3.3 percent compared to the four-week period ended June 1, 2019.

For the second quarter, net sales are projected to be in the range of 232 to 239 million dollars, consolidated operating margins are expected to between 5 percent and 6.5 percent resulting in earnings per diluted share of approximately 45 cents to 55 cents.

The company currently intends to open approximately 34 new stores in fiscal 2022, including up to 15 stores in North America, 14 stores in Europe and 5 stores in Australia.