Zumiez swings to Q4 loss

Zumiez net sales for the fourth quarter increased 0.6 percent to 281.8 million dollars, while the company reported a net loss of 33.5 million dollars or 1.73 dollars per share.

Net sales for the twelve months period decreased 8.6 percent to 875.5 million dollars and net loss was 62.6 million dollars or 3.25 dollars per share.

Commenting on the trading update, Rick Brooks, chief executive officer of Zumiez Inc., stated in a statement: “We concluded a difficult year with stronger than anticipated fourth quarter results as our consolidated monthly sales trend accelerated in January.”

First quarter-to-date sales decreased 3.1 percent and comparable sales for the four weeks decreased 6.2 percent. From a regional perspective, comparable sales for North America decreased 2.6 percent and other international comparable sales decreased 17.8 percent.

The company expects first quarter net sales to be in the range of 167 to 172 million dollars, earnings per share are expected to be between a loss of 1.09 dollars and a loss of 1.19 dollars.

“While we are encouraged by our stronger than anticipated fourth quarter and sustained quarterly improvements as we moved through the year, the global operating environment remains challenging and therefore we are further adjusting our strategies to balance the interests of our shareholders and customers,” added Brooks.

The company currently intends to open approximately 10 new stores in fiscal 2024, including up to three stores in North America, three stores in Europe and four stores in Australia.