Zumiez cuts Q2 loss, comparable sales increase by 3.6 percent

Zumiez net sales for the second quarter increased 8.1 percent to 210.2 million dollars and comparable sales increased 3.6 percent. The company’s net loss for the quarter reduced to 0.8 million dollars or 4 cents per share.

Total net sales for the six months increased by 2.7 percent to 387.6 million dollars and comparable sales increased 0.8 percent. Net loss for the period contracted to 17.6 million dollars or 91 cents per share.

Commenting on the trading results, Rick Brooks, chief executive officer of Zumiez Inc., said in a release: “We experienced a noticeable acceleration in our sales trend as the second quarter unfolded, with July North America comparable sales increasing in the high-single digits. With back-to-school a good indicator for holiday demand in the past, we are encouraged about our prospects for growth over the remainder of fiscal 2024.”

The company’s third quarter-to-date net sales increased by 6.8 percent, while comparable were up 12.1 percent. Zumiez projects net sales to be in the range of 221 to 225 million dollars representing growth of between 2 percent and 4 percent from the third quarter in the prior year. Adjusting for the impact of the calendar shift, net sales are expected to grow between 7 percent and 9 percent compared to the same weeks in the prior year.

Consolidated operating margins are expected to be between 0.2 percent and 1.2 percent with earnings per share results between a loss of 4 cents and income of 6 cents.

The company currently intends to open approximately nine new stores in fiscal 2024, including up to three stores in North America, three stores in Europe and three stores in Australia and close approximately 25 stores by the end of the year.