Fourth Quarter Comparable Sales Increased 5.9% Fourth Quarter Gross Margin Increased 190 Basis Point...











            







    
        
            March 13, 2025 16:05 ET
        

        
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                Zumiez Inc
            

        
    

    

    

    





        
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 OutlookThe 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       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 Total long-term assets 312,496   337,639 Total assets$634,881  $664,226     Liabilities and Shareholders’ Equity   Current liabilities   Trade accounts payable$49,389  $38,885 Accrued payroll and payroll taxes 21,962   18,431 Operating lease liabilities 56,009   60,885 Other current liabilities 28,154   25,886 Total current liabilities 155,514   144,087 Long-term operating lease liabilities 143,812   159,877 Other long-term liabilities  6,578   7,052 Total long-term liabilities 150,390   166,929 Total liabilities 305,904   311,016     Shareholders’ equity   Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding —   — Common stock, no par value, 50,000 shares authorized; 19,159 shares issued and outstanding at February 1, 2025 and 19,833 shares issued and outstanding at February 3, 2024 203,581   196,144 Accumulated other comprehensive loss (23,778)  (19,027)Retained earnings 149,174   176,093 Total shareholders’ equity 328,977   353,210 Total liabilities and shareholders’ equity$634,881  $664,226     ZUMIEZ INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)  Fiscal Year Ended February 1, 2025 February 3, 2024 (Unaudited)  Cash flows from operating activities:   Net (loss) income$(1,713) $(62,610)Adjustments to reconcile net income to net cash (used in) provided by operating activities:   Depreciation, amortization and accretion 22,160   22,763 Noncash lease expense 64,415   68,164 Deferred taxes (609)  (1,050)Stock-based compensation expense 6,831   7,022 Impairment of goodwill and long-lived assets 1,473   43,904 Foreign currency transaction loss 2,145   25 Other 178   181 Changes in operating assets and liabilities: -   - Receivables 1,533   6,859 Inventories (21,687)  5,809 Prepaid expenses and other assets 1,558   (1,817)Trade accounts payable 11,698   (907)Accrued payroll and payroll taxes 3,768   2,170 Income taxes payable 4,705   2,090 Operating lease liabilities (73,564)  (78,983)Other liabilities (2,190)  1,135 Net cash provided by (used in) operating activities 20,701   14,755 Cash flows from investing activities:   Additions to fixed assets (15,004)  (20,350)Purchases of marketable securities and other investments (2,980)  (38,348)Sales and maturities of marketable securities and other investments 50,586   50,150 Net cash provided by (used in) investing activities 32,602   (8,548)Cash flows from financing activities:   Proceeds from revolving credit facilities 3,220   49,440 Payments on revolving credit facilities (3,220)  (49,440)Proceeds from issuance and exercise of stock-based awards 606   704 Payments for tax withholdings on equity awards —   — Common stock repurchased (25,206)  — Net cash (used in) provided by financing activities (24,600)  704 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (1,458)  (1,080)Net change in cash, cash equivalents, and restricted cash 27,245   5,831 Cash, cash equivalents, and restricted cash, beginning of period 94,284   88,453 Cash, cash equivalents, and restricted cash, end of period$121,529  $94,284 Supplemental disclosure on cash flow information:   Cash paid during the period for income taxes$2,490  $2,065 Accrual for purchases of fixed assets 109   800    Company Contact:Darin WhiteVice President of Finance & Investor RelationsZumiez Inc.(425) 551-1500, ext. 1337  Investor Contact:ICRBrendon Frey (203) 682-8200  
            

ZUMZ

Zumiez Inc. Announces Fiscal 2024 Fourth Quarter Results

Fourth quarter comparable sales rose 5.9%, signaling recovery.
Net income increased to $14.8 million from previous loss.
Board approved $25 million stock repurchase plan.
First quarter sales projections indicate continued growth.
Operating margins improved significantly with cost reductions.

Zumiez Inc. Announces Fiscal 2024 Fourth Quarter Results

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