Mon, Jun 10, 8:01 PM (133 days ago)
Zumiez Inc. reported a net sales decline of 3.0% to $177.4 million for the quarter ended May 4, 2024, compared to $182.9 million in the same period in 2023. The decrease was attributed to inflationary pressures and competitive challenges. Despite the sales decline, gross profit increased by 5.1% to $51.9 million, with a gross margin improvement of 230 basis points to 29.3%, driven by higher product margins and cost efficiencies. Selling, general, and administrative expenses rose by 1.9% to $72.1 million, primarily due to increased incentive compensation and store wages. Consequently, the operating loss narrowed to $20.2 million from $21.4 million in the prior year. The net loss improved to $16.8 million or $0.86 per share, compared to a net loss of $18.4 million or $0.96 per share in the previous year. Cash and cash equivalents decreased to $74.9 million from $88.9 million, primarily due to increased inventory levels and capital expenditures. The company terminated its $25 million credit facility with Wells Fargo, transitioning to restricted cash deposits. Zumiez expects to spend $14-16 million on capital expenditures in fiscal 2024, focusing on new store openings and remodels. The company also announced a $25 million stock repurchase program, effective through June 2025.