$ZUMZ reports Q4 sales decline, projects Q1 loss
Mar 9th 2023, 9:16 pm
Analyst Summary: Zumiez Inc., a leading specialty retailer of apparel, footwear, equipment, and accessories for young men and women, reported a decrease in net sales for the fourth quarter ended January 28, 2023, of 19.2% to $280.1 million compared to $346.7 million in the same quarter ended January 29, 2022. Net income for the quarter was $11.4 million or $0.59 per diluted share, compared to net income of $38.2 million or $1.70 per diluted share in the fourth quarter of the prior fiscal year. For the full fiscal year 2022, total net sales decreased 19.0% to $958.4 million compared to $1,183.9 million for the fiscal year 2021. Net income for the year was $21.0 million or $1.08 per diluted share compared to $119.3 million or $4.85 per diluted share for the fiscal year 2021. Rick Brooks, CEO of Zumiez, noted that the results were "ahead of our guidance, but below year-ago levels" and acknowledged the challenging operating environment. The company intends to open approximately 23 new stores in fiscal 2023. For the first quarter of fiscal 2023, Zumiez projects net sales to be in the range of $178 to $184 million, with earnings per share expected to be between a loss of $0.85 and a loss of $0.95. The company believes its channel-less retail model and corporate culture will continue to drive profitable growth over the long-term. The company's first-quarter-to-date sales for the 35 days ended March 4, 2023, decreased 15.5%, compared with the same 35-day time period in the prior year ended March 5, 2022. Total comparable sales for the 35-day period ending March 4, 2023, decreased 16.6% from the comparable period in the prior year.