Zumiez Shares Sink on Wider 2Q Loss, Lower Sales

Dow Jones
16 hours ago
 
 

Shares of Zumiez fell after the apparel retailer widened its loss and logged lower sales in the latest quarter, hurt by continued softness in the U.S.

The stock declined 15%, to $14.20, in after-hours trading Thursday. Through the regular session's close, shares have lost more than a third of their value year to date.

The company after the bell reported a net loss of $2.74 million, or 17 cents a share, for its three months ended Aug. 1. That compares with a loss of $1 million, or 6 cents a share, in last year's comparable period.

Net sales fell 2.5%, to $209 million. Comparable sales, which account for store openings and closings, were down 2.1%.

Chief Executive Rick Brooks attributed the decline to weaker U.S. performance, hurt by continued softness in footwear as well as lower traffic levels. He added that continued growth across international markets helped offset the weakness.

"As we look forward to the holiday season, we remain focused on refining our merchandise assortments and deepening our customer experience initiatives to improve the trajectory," he added.

For the current quarter, ending Oct. 31, Zumiez guided for earnings of flat to 10 cents a share on revenue of $222 million to $226 million.

For the year, the company expects to open about five new stores, all in North America. It anticipates 16 store closures, including 10 in North America and 6 internationally.

 
 

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