Zumiez Q2 net sales decline by 18.1 percent

Zumiez Inc. net sales for the second quarter decreased 18.1 percent to 220 million dollars. Compared to the second quarter ended August 3, 2019, net sales decreased 3.7 percent. Net income for the quarter was 3.1 million dollars or 16 cents per diluted share compared to 24 million dollars or 94 cent per diluted share, in the second quarter of the prior fiscal year. Net income for the second quarter of 2019 was 9 million dollars or 36 cents per diluted share. Commenting on the trading update, Rick Brooks, chief executive officer of Zumiez Inc., stated: “As the second quarter progressed, we experienced continued pressure on our U.S. business as macroeconomic headwinds, led by inflation weighed on consumer discretionary spending. We are disappointed that our recent performance fell short of expectations and we are making adjustments to our merchandise assortments and managing expenses in order to improve near-term results.” Zumiez H1 net sales drop by 19.5 percent Total net sales for the six months decreased 19.5 percent to 440.7 million dollars and compared to the first six months ended August 3, 2019, net sales decreased 0.2 percent. Net income for the first six months was 2.7 million dollars or 14 cents per diluted share compared to 50.4 million dollars or 1.96 dollars per diluted share and compared to net income for the first six months of fiscal 2019 of 9.8 million dollars or 39 cents per diluted share. Zumiez expects negative trend to continue in Q3 Total third quarter-to-date sales for the 37 days ending September 5, 2022 decreased 18.1 percent. Compared to the 37-day period ended September 9, 2019, total net sales decreased 12.6 percent. Total comparable sales for the period were down 19.7 percent from the comparable period in the prior year, and decreased 15.3 percent from the comparable period in 2019. For the three months ending October 29, 2022, net sales are projected to be in the range of 220 to 228 million dollars. The company’s consolidated operating margins are expected to between 0.5 percent and 2.5 percent resulting in earnings per diluted share of approximately 3 cents to 18 cents. The company currently intends to open approximately 35 new stores in fiscal 2022, including up to 16 stores in North America, 14 stores in Europe and five stores in Australia.
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