Second Quarter Comparable Sales Increased 3.6%Second Quarter Gross Margin increased 250 basis points to 34.2%Second Quarter Loss Per share improved to ($0.04) from ($0.44) Third Quarter-to-date Comparable Sales up 12.1%
LYNNWOOD, Wash., Sept. 05, 2024 (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 second quarter ended August 3, 2024.
Net sales for the second quarter ended August 3, 2024 (13 weeks) increased 8.1% to $210.2 million from $194.4 million in the second quarter ended July 29, 2023 (13 weeks). Comparable sales for the thirteen weeks ended August 3, 2024 increased 3.6%. The shift in the retail calendar had a positive impact on the second quarter results, increasing net sales growth by approximately 530 basis points. However, this shift will negatively affect net sales growth in the third quarter. Comparable sales growth, as reported, is adjusted for the calendar shift and provides a more accurate measure of operating performance. Net loss in the second quarter of fiscal 2024 was $0.8 million, or $0.04 per share, compared to a net loss of $8.5 million, or $0.44 per share, in the second quarter of the prior fiscal year.
Total net sales for the six months (26 weeks) ended August 3, 2024 increased 2.7% to $387.6 million from $377.3 million reported for the six months (26 weeks) ended July 29, 2023. The retail calendar shift positively impacted net sales growth by approximately 310 basis points year-to-date. Comparable sales increased 0.8% for the twenty-six weeks ended August 3, 2024. Net loss for the first six months of fiscal 2024 was $17.6 million, or $0.91 per share, compared to a net loss for the first six months of fiscal 2023 of $26.9 million, or $1.40 per share.
At August 3, 2024, the Company had cash and current marketable securities of $127.0 million compared to cash and current marketable securities of $140.0 million at July 29, 2023. The decrease was primarily driven by share repurchases and capital expenditures partially offset by cash flow from operations. The Company repurchased 0.9 million shares during the quarter at an average cost of $20.55 per share and a total cost of $19.4 million.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "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. The work our merchandise teams have done refining our apparel and footwear assortments combined with enhanced customer engagement tactics from our in-store and online sales associates led to better than expected second quarter results and a strong back-to-school season in North America. 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. Looking farther ahead, we are confident that our global customer centric operating model has the Company positioned to continue building on the progress we've made towards delivering enhanced value for our shareholders in the years to come."
Third Quarter To-DateThird quarter-to-date net sales for the 30 days ending September 2, 2024 increased 6.8%, compared with the 30 day time period in the prior year ended August 28, 2023. Total comparable sales for the 30-day period ending September 2, 2024, adjusted to exclude the impact of the calendar shift, were up 12.1% from the comparable period in the prior year.
Fiscal 2024 Third Quarter OutlookThe Company is introducing guidance for the three months ending November 2, 2024. Net sales are projected to be in the range of $221 to $225 million representing growth of between 2% and 4% from the third quarter in the prior year. Adjusting for the impact of the calendar shift, net sales are expected to grow between 7% and 9% compared to the same weeks in the prior year. Consolidated operating margins are expected to be between 0.2% and 1.2% with earnings per share results between a loss of ($0.04) and income of $0.06.
The Company currently intends to open approximately 9 new stores in fiscal 2024, including up to 3 stores in North America, 3 stores in Europe and 3 stores in Australia and close approximately 25 stores by the end of the year.
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 August 31, 2024, we operated 752 stores, including 593 in the United States, 46 in Canada, 86 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 StatementCertain 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.
Company Contact:Darin WhiteDirector of Finance &Investor RelationsZumiez Inc.(425) 551-1500, ext. 1337
Investor Contact:ICRBrendon Frey(203) 682-8200
ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
Three Months Ended
August 3, 2024
% of Sales
July 29, 2023
% of Sales
Net sales
$
210,179
100.0
%
$
194,438
100.0
%
Cost of goods sold
138,385
65.8
%
132,760
68.3
%
Gross profit
71,794
34.2
%
61,678
31.7
%
Selling, general and administrative expenses
72,187
34.4
%
72,171
37.1
%
Operating loss
(393
)
-0.2
%
(10,493
)
-5.4
%
Interest income, net
1,128
0.6
%
775
0.4
%
Other (expense) income, net
(179
)
-0.1
%
423
0.2
%
Income (loss) before income taxes
556
0.3
%
(9,295
)
-4.8
%
Benefit from (provision for) income taxes
1,403
0.7
%
(786
)
-0.4
%
Net loss
$
(847
)
-0.4
%
$
(8,509
)
-4.4
%
Basic loss per share
$
(0.04
)
$
(0.44
)
Diluted loss per share
$
(0.04
)
$
(0.44
)
Weighted average shares used in computation of loss per share:
Basic
19,284
19,311
Diluted
19,284
19,311
Six Months Ended
August 3, 2024
% of Sales
July 29, 2023
% of Sales
Net sales
$
387,567
100.0
%
$
377,325
100.0
%
Cost of goods sold
263,874
68.1
%
266,290
70.6
%
Gross profit
123,693
31.9
%
111,035
29.4
%
Selling, general and administrative expenses
144,240
37.2
%
142,881
37.8
%
Operating loss
(20,547
)
-5.3
