Thu, Jun 5, 8:01 PM (18 days ago)
**Zumiez Inc. (ZUMZ) Q1 2025 Financial Summary** Zumiez Inc. (ZUMZ) reported a mixed quarter with slight improvements in revenue and gross profit margins, but continued losses and increased operating expenses. Here are the key points: **Financial Health:** - **Revenue:** $184.3 million, up 3.9% from $177.4 million in Q1 2024. - **Gross Profit Margin:** 30.0%, up from 29.3% in Q1 2024. - **Operating Loss:** $19.9 million, slightly improved from $20.2 million in Q1 2024. - **Net Loss:** $14.3 million, or $0.79 per share, improved from $16.8 million, or $0.86 per share, in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $22.1 million, up from $18.6 million in Q1 2024. **Performance Metrics:** - **Comparable Sales:** Increased by 5.5%, driven by higher dollars per transaction. - **Store Count:** 730 stores as of May 3, 2025, with 569 in the U.S., 87 in Europe, 46 in Canada, and 28 in Australia. - **Capital Expenditures:** Planned $14.0 million to $16.0 million for fiscal 2025, primarily for new stores and remodels. **Trends and Uncertainties:** - **Economic Conditions:** Zumiez faces uncertainties due to economic conditions, consumer spending, and competitive pressures. - **Foreign Exchange Rates:** Changes in foreign exchange rates impacted revenue by $0.5 million. - **Litigation:** A settlement in principle for $2.9 million related to a wage and hour lawsuit in California. **Future Operations Impact:** - **Store Openings:** Plans to open approximately 9 new stores in fiscal 2025. - **Share Repurchase:** Approved a $15 million share repurchase program, effective June 4, 2025. - **Credit Facility:** A $25 million revolving credit facility with PNC Bank, maturing December 20, 2025. **Conclusion:** Zumiez showed slight improvements in revenue and gross profit margins but continues to face challenges with operating losses and increased expenses. The company is focusing on store openings, share repurchases, and managing economic uncertainties.