Zumiez Inc. Announces Fiscal 2024 Third Quarter Results
Zumiez reported improved financial results for Q3 2024, with net sales increasing 2.9% to $222.5 million and comparable sales rising 7.5%. The company turned a profit with net income of $1.2 million ($0.06 per share), compared to a net loss of $2.2 million in Q3 2023. Gross margin improved by 140 basis points to 35.2%.
For the first nine months of 2024, total sales grew 2.8% to $610.0 million with comparable sales up 3.2%. The company's cash position stood at $99.3 million. Looking ahead, Q4 guidance projects net sales between $284-288 million with earnings per share of $0.83-0.93. The company plans to close approximately 33 stores while opening 7 new locations in fiscal 2024.
Zumiez ha riportato risultati finanziari migliorati per il terzo trimestre del 2024, con vendite nette in aumento del 2,9% a 222,5 milioni di dollari e vendite comparabili in crescita del 7,5%. L'azienda ha registrato un profitto con un reddito netto di 1,2 milioni di dollari (0,06 dollari per azione), rispetto a una perdita netta di 2,2 milioni di dollari nel terzo trimestre del 2023. Il margine lordo è migliorato di 140 punti base, raggiungendo il 35,2%.
Nei primi nove mesi del 2024, le vendite totali sono cresciute del 2,8% a 610,0 milioni di dollari, con vendite comparabili in aumento del 3,2%. La posizione di liquidità dell'azienda era di 99,3 milioni di dollari. Guardando al futuro, le previsioni per il quarto trimestre indicano vendite nette tra 284 e 288 milioni di dollari con utili per azione tra 0,83 e 0,93 dollari. L'azienda prevede di chiudere circa 33 negozi mentre ne aprirà 7 di nuovi nell'esercizio fiscale del 2024.
Zumiez reportó resultados financieros mejorados para el tercer trimestre de 2024, con ventas netas que aumentaron un 2,9% a 222,5 millones de dólares y ventas comparables que subieron un 7,5%. La empresa logró un beneficio con un ingreso neto de 1,2 millones de dólares (0,06 dólares por acción), en comparación con una pérdida neta de 2,2 millones de dólares en el tercer trimestre de 2023. El margen bruto mejoró en 140 puntos básicos, alcanzando el 35,2%.
Durante los primeros nueve meses de 2024, las ventas totales crecieron un 2,8% a 610,0 millones de dólares, con ventas comparables en aumento del 3,2%. La posición de caja de la empresa se situó en 99,3 millones de dólares. De cara al futuro, la guía para el cuarto trimestre proyecta ventas netas entre 284 y 288 millones de dólares con ganancias por acción de 0,83 a 0,93 dólares. La empresa planea cerrar aproximadamente 33 tiendas mientras abre 7 nuevas ubicaciones en el ejercicio fiscal de 2024.
Zumiez는 2024년 3분기 금융 결과가 개선되었으며, 순매출이 2.9% 증가하여 2억 2,250만 달러에 이르고, 비교 가능한 매출이 7.5% 상승했다고 보고했습니다. 회사는 120만 달러(주당 0.06달러)의 순이익을 기록하였고, 이는 2023년 3분기 220만 달러의 순손실과 비교됩니다. 총 이익률은 140베이시스 포인트 개선되어 35.2%에 도달했습니다.
2024년 첫 9개월 동안 총 매출은 2.8% 증가한 6억 1,000만 달러이며, 비교 가능한 매출은 3.2% 증가했습니다. 회사의 현금 보유액은 9,930만 달러에 달했습니다. 향후 4분기 전망은 순매출이 2억 8,400-2억 8,800만 달러이고 주당 수익은 0.83-0.93달러로 예상됩니다. 회사는 2024 회계연도에 약 33개 매장을 폐쇄하고 7개의 새로운 매장을 열 계획입니다.
Zumiez a rapporté des résultats financiers améliorés pour le troisième trimestre de 2024, avec des ventes nettes en hausse de 2,9 % à 222,5 millions de dollars et des ventes comparables en augmentation de 7,5 %. L'entreprise a dégagé un bénéfice avec un revenu net de 1,2 million de dollars (0,06 dollar par action), contre une perte nette de 2,2 millions de dollars au troisième trimestre 2023. La marge brute s'est améliorée de 140 points de base, atteignant 35,2 %.
Pour les neuf premiers mois de 2024, les ventes totales ont augmenté de 2,8 % à 610,0 millions de dollars, avec des ventes comparables en hausse de 3,2 %. La position de liquidité de l'entreprise s'élevait à 99,3 millions de dollars. En regardant vers l'avenir, les prévisions du quatrième trimestre projettent des ventes nettes entre 284 et 288 millions de dollars avec des bénéfices par action de 0,83 à 0,93 dollar. L'entreprise prévoit de fermer environ 33 magasins tout en ouvrant 7 nouveaux emplacements lors de l'exercice 2024.
Zumiez berichtete über verbesserte Finanzergebnisse für das 3. Quartal 2024, mit einem Anstieg der Nettoumsätze um 2,9% auf 222,5 Millionen Dollar und einem Anstieg der vergleichbaren Verkäufe um 7,5%. Das Unternehmen erzielte einen Gewinn mit einem Nettogewinn von 1,2 Millionen Dollar (0,06 Dollar pro Aktie), verglichen mit einem Nettoverlust von 2,2 Millionen Dollar im 3. Quartal 2023. Die Bruttomarge verbesserte sich um 140 Basispunkte auf 35,2%.
In den ersten neun Monaten des Jahres 2024 wuchsen die Gesamtverkäufe um 2,8% auf 610,0 Millionen Dollar, während die vergleichbaren Verkäufe um 3,2% stiegen. Die Zahlungsmittelposition des Unternehmens betrug 99,3 Millionen Dollar. Ausblick auf das 4. Quartal weist auf Nettoumsätze zwischen 284 und 288 Millionen Dollar mit einem Gewinn pro Aktie von 0,83 bis 0,93 Dollar hin. Das Unternehmen plant, etwa 33 Geschäfte zu schließen und 7 neue Standorte im Geschäftsjahr 2024 zu eröffnen.
- Q3 comparable sales increased 7.5%
- Gross margin improved 140 basis points to 35.2%
- Returned to profitability with $0.06 EPS vs. ($0.12) loss prior year
- Strong Q4 guidance with projected operating margins of 6.0-7.5%
- Q4-to-date total sales up 10.0%
- Cash position decreased to $99.3M from $135.8M year-over-year
- Net loss of $16.5M for first nine months of 2024
- Planning to close 33 stores by year-end
Insights
The Q3 results show meaningful improvement in Zumiez's financial performance. Comparable sales growth of
The
The positive Q4 guidance with projected operating margins of
The strategic repositioning in North America is yielding results, evidenced by strong performance in apparel and footwear categories. The sequential improvement in comparable sales by 390 basis points signals successful product assortment refinement and customer engagement strategies.
Store portfolio optimization continues with 7 new store openings balanced against 33 planned closures, suggesting a disciplined approach to retail footprint management. The company's multi-channel presence across 752 stores in four countries, plus e-commerce operations, provides diversification benefits.
Early Q4 performance showing
Third Quarter Comparable Sales Increased
Third Quarter Gross Margin increased 140 basis points to
Third Quarter Earnings Per share improved to
Fourth Quarter Comparable Sales Guidance up
LYNNWOOD, Wash., Dec. 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 third quarter ended November 2, 2024.
Net sales for the third quarter ended November 2, 2024 (13 weeks) increased
Total net sales for the nine months (39 weeks) ended November 2, 2024 increased
As of November 2, 2024, the Company had cash and current marketable securities of
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “The strategic initiatives we have been executing this year have contributed to a noticeable increase in sales trends. Fueled by growing strength in our North American business, consolidated comparable sales sequentially accelerated 390 basis points to high-single digits in the third quarter. We experienced strong gains in our apparel and footwear categories as consumers have responded favorably to our refined product assortments and enhanced customer engagement tactics. We still have much work to do improving profitability and capitalizing on the opportunities we have created for the Company. Our results during back-to-school and the start of the holiday season represent solid progress toward these goals and we are committed to building on our momentum to deliver greater value for our shareholders next year and over the long term.”
Fourth Quarter To-Date
Total fourth quarter-to-date total sales for the 31 days ending December 3, 2024 increased
Fiscal 2024 Fourth Quarter Outlook
The Company is introducing guidance for the three months ending February 1, 2025. Net sales are projected to be in the range of
The Company has opened 6 new stores in fiscal 2024, with one additional store opening planned in the fourth quarter. These 7 new stores opened during the year include 3 stores in North America, 2 stores in Europe and 2 stores in Australia. We expect to close approximately 33 stores throughout fiscal 2024 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 November 30, 2024, we operated 752 stores, including 592 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 | ||||||||||||||
| November 2, 2024 | % of Sales | October 28, 2023 | % of Sales | |||||||||||
| Net sales | $ | 222,475 | 100.0 | % | $ | 216,339 | 100.0 | % | ||||||
| Cost of goods sold | 144,161 | 64.8 | % | 143,135 | 66.2 | % | ||||||||
| Gross profit | 78,314 | 35.2 | % | 73,204 | 33.8 | % | ||||||||
| Selling, general and administrative expenses | 75,946 | 34.1 | % | 73,361 | 33.9 | % | ||||||||
| Operating income (loss) | 2,368 | 1.1 | % | (157 | ) | -0.1 | % | |||||||
| Interest income, net | 1,013 | 0.5 | % | 948 | 0.4 | % | ||||||||
| Other expense, net | (217 | ) | -0.1 | % | (1,037 | ) | -0.4 | % | ||||||
| Profit (loss), before income taxes | 3,164 | 1.5 | % | (246 | ) | -0.1 | % | |||||||
| Provision for income taxes | 2,005 | 0.9 | % | 1,985 | 0.9 | % | ||||||||
| Net income (loss) | $ | 1,159 | 0.6 | % | $ | (2,231 | ) | -1.0 | % | |||||
| Basic income (loss) per share | $ | 0.06 | $ | (0.12 | ) | |||||||||
| Diluted income (loss) per share | $ | 0.06 | $ | (0.12 | ) | |||||||||
| Weighted average shares used in computation of income (loss) per share | ||||||||||||||
| Basic | 18,463 | 19,327 | ||||||||||||
| Diluted | 18,881 | 19,327 | ||||||||||||
| Nine Months Ended | ||||||||||||||
| November 2, 2024 | % of Sales | October 28, 2023 | % of Sales | |||||||||||
| Net sales | $ | 610,042 | 100.0 | % | $ | 593,664 | 100.0 | % | ||||||
| Cost of goods sold | 408,035 | 66.9 | % | 409,425 | 69.0 | % | ||||||||
| Gross profit | 202,007 | 33.1 | % | 184,239 | 31.0 | % | ||||||||
| Selling, general and administrative expenses | 220,187 | 36.0 | % | 216,243 | 36.3 | % | ||||||||
| Operating loss | (18,180 | ) | -2.9 | % | (32,004 | ) | -5.3 | % | ||||||
| Interest income, net | 3,463 | 0.6 | % | 2,581 | 0.4 | % | ||||||||
| Other expense, net | (1,163 | ) | -0.2 | % | (1,156 | ) | -0.2 | % | ||||||
| Loss before income taxes | (15,880 | ) | -2.5 | % | (30,579 | ) | -5.1 | % | ||||||
| Provision for (benefit from), income taxes | 587 | 0.1 | % | (1,456 | ) | -0.2 | % | |||||||
| Net loss | $ | (16,467 | ) | -2.6 | % | $ | (29,122 | ) | -4.9 | % | ||||
| Basic loss per share | $ | (0.86 | ) | $ | (1.51 | ) | ||||||||
| Diluted loss per share | $ | (0.86 | ) | $ | (1.51 | ) | ||||||||
| Weighted average shares used in computation of loss per share: | ||||||||||||||
| Basic | 19,070 | 19,278 | ||||||||||||
| Diluted | 19,070 | 19,278 | ||||||||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||||
| November 2, 2024 | February 3, 2024 | October 28, 2023 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 48,542 | $ | 88,875 | $ | 48,968 | ||||||
| Marketable securities | 50,760 | 82,704 | 86,857 | |||||||||
| Receivables | 14,927 | 13,780 | 23,022 | |||||||||
| Inventories | 187,230 | 128,827 | 175,882 | |||||||||
| Prepaid expenses and other current assets | 16,923 | 12,401 | 11,315 | |||||||||
| Total current assets | 318,382 | 326,587 | 346,044 | |||||||||
| Fixed assets, net | 84,783 | 90,508 | 92,925 | |||||||||
| Operating lease right-of-use assets | 192,721 | 196,775 | 212,984 | |||||||||
| Goodwill | 15,376 | 15,374 | 55,145 | |||||||||
| Intangible assets, net | 14,224 | 14,200 | 13,819 | |||||||||
| Deferred tax assets, net | 8,553 | 8,623 | 10,788 | |||||||||
| Other long-term assets | 11,935 | 12,159 | 11,321 | |||||||||
| Total long-term assets | 327,592 | 337,639 | 396,982 | |||||||||
| Total assets | $ | 645,974 | $ | 664,226 | $ | 743,026 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities | ||||||||||||
| Trade accounts payable | $ | 72,537 | $ | 38,885 | $ | 74,337 | ||||||
| Accrued payroll and payroll taxes | 18,965 | 18,431 | 18,756 | |||||||||
| Operating lease liabilities | 59,084 | 60,885 | 69,084 | |||||||||
| Other current liabilities | 19,527 | 25,886 | 19,602 | |||||||||
| Total current liabilities | 170,113 | 144,087 | 181,779 | |||||||||
| Long-term operating lease liabilities | 151,981 | 159,877 | 176,233 | |||||||||
| Other long-term liabilities | 6,792 | 7,052 | 5,550 | |||||||||
| Total long-term liabilities | 158,773 | 166,929 | 181,783 | |||||||||
| Total liabilities | $ | 328,886 | $ | 311,016 | $ | 363,562 | ||||||
| Shareholders’ equity | ||||||||||||
| Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | — | — | — | |||||||||
| Common stock, no par value, 50,000 shares authorized; 19,171 shares issued and outstanding at November 2, 2024 and 19,833 shares issued and outstanding at February 3, 2024 | 201,853 | 196,144 | 194,230 | |||||||||
| Accumulated other comprehensive loss | (19,185 | ) | (19,027 | ) | (24,347 | ) | ||||||
| Retained earnings | 134,420 | 176,093 | 209,581 | |||||||||
| Total shareholders’ equity | 317,088 | 353,210 | 379,464 | |||||||||
| Total liabilities and shareholders’ equity | $ | 645,974 | $ | 664,226 | $ | 743,026 | ||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| November 2, 2024 | October 28, 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (16,467 | ) | $ | (29,122 | ) | ||
| Adjustments to reconcile loss to net cash used in operating activities: | ||||||||
| Depreciation, amortization and accretion | 16,507 | 16,209 | ||||||
| Noncash lease expense | 48,424 | 51,607 | ||||||
| Deferred taxes | (324 | ) | (3,014 | ) | ||||
| Stock-based compensation expense | 5,110 | 5,108 | ||||||
| Impairment of long-lived assets | 535 | 925 | ||||||
| Other | 1,378 | 943 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | 484 | (1,767 | ) | |||||
| Inventories | (59,401 | ) | (43,186 | ) | ||||
| Prepaid expenses and other assets | (152 | ) | (273 | ) | ||||
| Trade accounts payable | 31,956 | 34,270 | ||||||
| Accrued payroll and payroll taxes | 540 | 2,684 | ||||||
| Income taxes payable | (578 | ) | 252 | |||||
| Operating lease liabilities | (55,565 | ) | (52,656 | ) | ||||
| Other liabilities | (6,437 | ) | (4,902 | ) | ||||
| Net cash used in operating activities | (33,990 | ) | (22,922 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Additions to fixed assets | (10,012 | ) | (16,210 | ) | ||||
| Purchases of marketable securities | (1,967 | ) | (28,679 | ) | ||||
| Sales and maturities of marketable securities and other investments | 34,077 | 34,506 | ||||||
| Net cash provided by (used in) investing activities | 22,098 | (10,383 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facilities | 3,220 | 25,682 | ||||||
| Payments on revolving credit facilities | (3,220 | ) | (25,682 | ) | ||||
| Proceeds from issuance and exercise of stock-based awards | 736 | 890 | ||||||
| Payments for tax withholdings on equity awards | (130 | ) | (185 | ) | ||||
| Repurchase of common stock, including taxes | (25,206 | ) | - | |||||
| Net cash (used in) provided by financing activities | (24,600 | ) | 705 | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (242 | ) | (1,643 | ) | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (36,734 | ) | (34,243 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 94,284 | 88,453 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 57,550 | $ | 54,210 | ||||
| Supplemental disclosure on cash flow information: | ||||||||
| Cash paid during the period for income taxes | $ | 1,961 | $ | 1,686 | ||||
| Accrual for purchases of fixed assets | 2,218 | 2,780 | ||||||
Company Contact:
Darin White
Vice President of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337
Investor Contact:
ICR
Brendon Frey
(203) 682-8200
FAQ
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