Zumiez Inc. Announces Fiscal 2024 Fourth Quarter Results

2 days ago 2

Scroll Up

Fourth Quarter Comparable Sales Increased 5.9%

Fourth Quarter Gross Margin Increased 190 Basis Points to 36.2%

Fourth Quarter Earnings Per Share Improved to $0.78 from ($1.73)

First Quarter-To-Date Comparable Sales up 4.3%, Led by North America Up 6.4%

Board Approves New Stock Repurchase Authorization

LYNNWOOD, Wash., March 13, 2025 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the fourth quarter and year ended February 1, 2025.

Net sales for the fourth quarter ended February 1, 2025 (13 weeks) decreased 0.9% to $279.2 million from $281.8 million in the fourth quarter ended February 3, 2024 (14 weeks). Comparable sales for the thirteen weeks ended February 1, 2025 increased 5.9%. Net income in the fourth quarter of fiscal 2024 was $14.8 million, or $0.78 per share, compared to a net loss of $33.5 million, or $1.73 per share, in the fourth quarter of the prior fiscal year. Fiscal 2023 fourth quarter results reflect a goodwill impairment charge of $41.1 million, or $2.13 per share after-tax, related to the Company's decision to slow store growth and focus on profitability in Europe and the corresponding impact on the future cash flow projections of its Blue Tomato business.

Total net sales for the twelve months (52 weeks) ended February 1, 2025, increased 1.6% to $889.2 million from $875.5 million reported for the twelve months (53 weeks) ended February 3, 2024. Comparable sales increased 4.0% for fifty-two weeks ended February 1, 2025. Net loss for fiscal 2024 was $1.7 million, or $0.09 per share. Net loss for fiscal 2023 inclusive of the $41.1 million goodwill impairment charge was $62.6 million, or $3.25 per share.

As of February 1, 2025, the Company had cash and current marketable securities of $147.6 million compared to cash and current marketable securities of $171.6 million as of February 3, 2024. The decrease was primarily driven by share repurchases and capital expenditures partially offset by cash flow from operations.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "We delivered a substantial improvement in fourth quarter operating profitability driven by significant gross margin expansion and a meaningful reduction in operating expenses. Comparable sales increased by 5.9% led by North America and while choppy, represents continued progress in growing the top-line and bottom line. This unexpected choppiness is indicative of the environment we have been operating in for some time, and we expect it will continue. Our plan for 2025 is to stay the course and focus on executing the product and customer engagement initiatives that have fueled our third consecutive quarter of positive comps while staying nimble and financially flexible to deliver enhanced profitability. We have demonstrated our ability to navigate challenging cycles and emerge stronger and I am confident that Zumiez is on right course to repeat this accomplishment once again.”

Fiscal First Quarter-to-Date Sales

Total first quarter-to-date sales for the four weeks ended March 1, 2025 increased 1.7%, from the four weeks ended March 2, 2024. Comparable sales for the four weeks ended March 1, 2025 increased 4.3% from the four weeks ended March 2, 2024. From a regional perspective, comparable sales for North America increased 6.4% and other international comparable sales decreased 3.7%.

Fiscal 2025 First Quarter Outlook

The Company is introducing guidance for the three months ending May 3, 2025. Net sales are projected to be in the range of $179 to $183 million. Earnings per share are expected to be between a loss of $0.72 and a loss of $0.82.

The Company currently intends to open approximately 9 new stores in fiscal 2025, including up to 6 stores in North America, 2 stores in Europe and 1 store in Australia.

Stock Repurchase Authorization

On March 12, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 million of common stock. The repurchase program is expected to continue through March 31, 2026 unless the time period is extended or shortened by the Board of Directors.

Conference call Information

To access the conference call, please pre-register using this link (Registration Link) Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com.

About Zumiez Inc.

Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of March 1, 2025, we operated 729 stores, including 569 in the United States, 46 in Canada, 87 in Europe and 27 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.

Safe Harbor Statement

Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company's annual report on Form 10-K for the fiscal year ended January 28, 2023 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 
  Three Months Ended
  February 1, % of February 3, % of
  2025  Sales  2024  Sales
  (Unaudited)   (Unaudited)  
Net sales$279,160   100.0%  281,822   100.0%
Cost of goods sold 178,127   63.8%  185,171   65.7%
Gross profit 101,033   36.2%  96,651   34.3%
Selling, general and administrative expenses 80,903   29.0%  129,436   45.9%
Operating profit (loss) 20,130   7.2%  (32,785)  -11.6%
Interest income, net 742   0.3%  941   0.3%
Other (expense) income , net (915)  -0.3%  545   0.2%
Earnings (loss) before income taxes 19,957   7.2%  (31,299)  -11.1%
Provision for income taxes 5,203   1.9%  2,188   0.8%
Net income (loss)$14,754   5.3% $(33,487)  -11.9%
Basic earnings (loss) per share$0.80    $(1.73)  
Diluted earnings (loss) per share$0.78    $(1.73)  
Weighted average shares used in computation of earnings per share:      
Basic 18,464     19,323   
Diluted 18,806     19,323   
         
         
  Fiscal Year Ended
  February 1, % of February 3, % of
  2025  Sales  2024  Sales
  (Unaudited)      
Net sales$889,202   100.0% $875,486   100.0%
Cost of goods sold 586,162   65.9%  594,596   67.9%
Gross profit 303,040   34.1%  280,890   32.1%
Selling, general and administrative expenses 301,090   33.9%  345,679   39.6%
Operating profit (loss) 1,950   0.2%  (64,789)  -7.4%
Interest income, net 4,205   0.5%  3,522   0.4%
Other expense, net (2,078)  -0.2%  (611)  -0.1%
Earnings (loss) before income taxes 4,077   0.5%  (61,878)  -7.1%
Provision for income taxes 5,790   0.7%  732   0.1%
Net income$(1,713)  -0.2% $(62,610)  -7.2%
Basic earnings per share$(0.09)   $(3.25)  
Diluted earnings per share$(0.09)   $(3.25)  
Weighted average shares used in computation of earnings per share:      
Basic 18,918     19,290   
Diluted 18,918     19,290   

This website uses cookies. By continuing to browse the website, you are agreeing to our use of cookies. Read More.

ZUMIEZ INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 
 February 1, 2025 February 3, 2024
 (Unaudited)  
Assets   
Current assets   
Cash and cash equivalents$112,668  $88,875 
Marketable securities 34,890   82,704 
Receivables 12,825   13,780 
Inventories 146,648   128,827 
Prepaid expenses and other current assets 15,354   12,401 
Total current assets 322,385   326,587 
Fixed assets, net 80,178   90,508 
Operating lease right-of-use assets 183,235   196,775 
Goodwill 15,258   15,374 
Intangible assets, net 13,577   14,200 
Deferred tax assets, net 8,684   8,623 
Other long-term assets 11,564   12,159
Read Entire Article