Zumiez Inc. Announces Fiscal 2025 First Quarter Results
- Comparable sales increased 5.5% with North America showing strong 7.4% growth
- Net sales increased 3.9% to $184.3 million year-over-year
- Net loss improved to $14.3 million from $16.8 million in prior year
- New $15 million stock repurchase program approved
- Strong full-price selling driving sales growth in North America
- Posted net loss of $14.3 million or $0.79 per share
- Cash position decreased significantly from $146.6M to $101M year-over-year
- International business turned slightly negative in Q1
- $2.9 million negative impact from wage and hours lawsuit settlement
- Projecting continued losses for Q2 2025 ($0.09-$0.24 per share)
Insights
Zumiez posted improved Q1 results with 5.5% comparable sales growth despite ongoing challenges, showing strong North American performance but weaker international results.
Zumiez's Q1 2025 results show promising signs of improvement despite continued profitability challenges. The company reported a 3.9% increase in net sales to
The company reduced its net loss to
Gross margin improved by
Cash position has declined substantially, with cash and marketable securities at
Looking ahead, the company's diversification of its supply chain away from China demonstrates proactive management amid trade uncertainties. The Q2 guidance of
The contrast between North American strength and international weakness bears watching, as does the continued operating loss despite sales growth. However, the improvement in comparable sales momentum and gross margin expansion provide encouraging signals that Zumiez's turnaround efforts are gaining traction.
First Quarter Comparable Sales Increased
First Quarter North America Comparable Sales Increased
Board Approves New Stock Repurchase Authorization
LYNNWOOD, Wash., June 05, 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 first quarter ended May 3, 2025.
Net sales for the first quarter ended May 3, 2025 (13 weeks) increased
On May 3, 2025, the Company had cash and current marketable securities of
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our North American business showed resilience during the first quarter despite increased macroeconomic uncertainty following the implementation of higher tariffs. Consumers continue to respond positively to our merchandise assortments and shopping experience evidenced by strong full price selling that drove sales growth above the Q4 run rate for North America. In response to the current global trade environment, we have further diversified our North America supply chain and expect a meaningful reduction in exposure to China by the end of this year. While the potential impact on consumer sentiment from ongoing trade negotiations is unknown, we are pleased with our current momentum in North America and confident in our ability to outperform the market over the remainder of the year. Internationally, our business was tougher in the first quarter with sales turning slightly negative. We remain focused on introducing new and unique products to drive demand while controlling costs to improve margins. Consolidated results, removing the previously mentioned unplanned legal charge, exceeded the high end our guidance for both Sales and loss per share while also showing meaningful improvement to the prior year.”
May 2025 Sales
Net sales for the four-week period ended May 31, 2025, increased
Fiscal 2025 Second Quarter Outlook
Based on quarter-to-date results, current tariffs rates, and actions taken thus far to mitigate the increased costs from higher tariffs, the Company expects net sales to be in the range of
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 June 4, 2025, Zumiez Inc. approved the repurchase of up to an aggregate of
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 May 31, 2025, we operated 731 stores, including 570 in the United States, 46 in Canada, 87 in Europe and 28 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, 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 February 1, 2025 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 LOSS (In thousands, except per share amounts) (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| May 3, 2025 | % of Sales | May 4, 2024 | % of Sales | |||||||||||
| Net sales | $ | 184,343 | 100.0 | % | $ | 177,388 | 100.0 | % | ||||||
| Cost of goods sold | 129,028 | 70.0 | % | 125,489 | 70.7 | % | ||||||||
| Gross profit | 55,315 | 30.0 | % | 51,899 | 29.3 | % | ||||||||
| Selling, general and administrative expenses | 75,187 | 40.8 | % | 72,054 | 40.6 | % | ||||||||
| Operating loss | (19,872 | ) | -10.8 | % | (20,155 | ) | -11.3 | % | ||||||
| Interest income, net | 2,255 | 1.2 | % | 1,321 | 0.7 | % | ||||||||
| Other income (expense), net | 1,844 | 1.0 | % | (767 | ) | -0.4 | % | |||||||
| Loss, before income taxes | (15,773 | ) | -8.6 | % | (19,601 | ) | -11.0 | % | ||||||
| Benefit from income taxes | (1,443 | ) | -0.8 | % | (2,821 | ) | -1.6 | % | ||||||
| Net loss | $ | (14,330 | ) | -7.8 | % | $ | (16,780 | ) | -9.4 | % | ||||
| Basic loss per share | $ | (0.79 | ) | $ | (0.86 | ) | ||||||||
| Diluted loss per share | $ | (0.79 | ) | $ | (0.86 | ) | ||||||||
| Weighted average shares used in computation of loss per share | ||||||||||||||
| Basic | 18,116 | 19,465 | ||||||||||||
| Diluted | 18,116 | 19,465 | ||||||||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||||
| May 3, 2025 | February 1, 2025 | May 4, 2024 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 62,519 | $ | 112,668 | $ | 74,864 | ||||||
| Marketable securities | 38,443 | 34,890 | 71,757 | |||||||||
| Receivables | 14,839 | 12,825 | 13,415 | |||||||||
| Inventories | 149,864 | 146,648 | 146,815 | |||||||||
| Prepaid expenses and other current assets | 15,525 | 15,354 | 14,177 | |||||||||
| Total current assets | 281,190 | 322,385 | 321,028 | |||||||||
| Fixed assets, net | 79,703 | 80,178 | 89,831 | |||||||||
| Operating lease right-of-use assets | 185,901 | 183,235 | 192,607 | |||||||||
| Goodwill | 15,329 | 15,258 | 15,385 | |||||||||
| Intangible assets, net | 14,665 | 13,577 | 14,117 | |||||||||
| Deferred tax assets, net | 10,215 | 8,684 | 11,158 | |||||||||
| Other long-term assets | 12,097 | 11,564 | 12,495 | |||||||||
| Total long-term assets | 317,910 | 312,496 | 335,593 | |||||||||
| Total assets | $ | 599,100 | $ | 634,881 | $ | 656,621 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities | ||||||||||||
| Trade accounts payable | $ | 48,981 | $ | 49,389 | $ | 62,301 | ||||||
| Accrued payroll and payroll taxes | 16,563 | 21,962 | 16,958 | |||||||||
| Operating lease liabilities | 54,388 | 56,009 | 59,191 | |||||||||
| Other current liabilities | 26,943 | 28,154 | 18,869 | |||||||||
| Total current liabilities | 146,875 | 155,514 | 157,319 | |||||||||
| Long-term operating lease liabilities | 147,398 | 143,812 | 155,040 | |||||||||
| Other long-term liabilities | 6,349 | 6,578 | 6,927 | |||||||||
| Total long-term liabilities | 153,747 | 150,390 | 161,967 | |||||||||
| Total liabilities | 300,622 | 305,904 | 319,286 | |||||||||
| Shareholders’ equity | ||||||||||||
| Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | — | — | — | |||||||||
| Common stock, no par value, 50,000 shares authorized; 17,770 shares issued and outstanding at May 3, 2025 and 19,159 shares issued and outstanding at February 1, 2025 | 205,595 | 203,581 | 198,047 | |||||||||
| Accumulated other comprehensive loss | (16,746 | ) | (23,778 | ) | (20,025 | ) | ||||||
| Retained earnings | 109,629 | 149,174 | 159,313 | |||||||||
| Total shareholders’ equity | 298,478 | 328,977 | 337,335 | |||||||||
| Total liabilities and shareholders’ equity | $ | 599,100 | $ | 634,881 | $ | 656,621 | ||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| May 3, 2025 | May 4, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (14,330 | ) | $ | (16,780 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation, amortization and accretion | 5,387 | 5,561 | ||||||
| Noncash lease expense | 14,639 | 14,522 | ||||||
| Deferred taxes | (1,473 | ) | (2,590 | ) | ||||
| Stock-based compensation expense | 1,828 | 1,675 | ||||||
| Impairment of long-lived assets | 462 | 101 | ||||||
| Other | (765 | ) | 525 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | (758 | ) | 1,077 | |||||
| Inventories | (119 | ) | (18,876 | ) | ||||
| Prepaid expenses and other assets | 299 | 1,754 | ||||||
| Trade accounts payable | (1,357 | ) | 21,763 | |||||
| Accrued payroll and payroll taxes | (5,863 | ) | (1,458 | ) | ||||
| Income taxes payable | (259 | ) | (797 | ) | ||||
| Operating lease liabilities | (16,588 | ) | (17,276 | ) | ||||
| Other liabilities | (3,187 | ) | (7,778 | ) | ||||
| Net cash used in operating activities | (22,084 | ) | (18,577 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Additions to fixed assets | (2,219 | ) | (2,546 | ) | ||||
| Purchases of marketable securities | (7,055 | ) | (1,967 | ) | ||||
| Sales and maturities of marketable securities and other investments | 5,086 | 12,510 | ||||||
| Net cash (used in) provided by investing activities | (4,188 | ) | 7,997 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facilities | — | 3,220 | ||||||
| Payments on revolving credit facilities | — | (3,220 | ) | |||||
| Proceeds from issuance and exercise of stock-based awards | 378 | 358 | ||||||
| Payments for tax withholdings on equity awards | (192 | ) | (130 | ) | ||||
| Repurchase of common stock, including taxes | (25,215 | ) | — | |||||
| Net cash (used in) provided by financing activities | (25,029 | ) | 228 | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 1,608 | (245 | ) | |||||
| Net decrease in cash, cash equivalents, and restricted cash | (49,693 | ) | (10,597 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 121,517 | 94,284 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 71,824 | $ | 83,687 | ||||
| Supplemental disclosure on cash flow information: | ||||||||
| Cash paid during the period for income taxes | $ | 412 | $ | 654 | ||||
| Accrual for purchases of fixed assets | 982 | 2,094 | ||||||
Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337
Investor Contact:
ICR
Brendon Frey
(203) 682-8200
FAQ
What were Zumiez (ZUMZ) Q1 2025 earnings results?
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