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LYNNWOOD, Wash. - Zumiez Inc . (NASDAQ:ZUMZ) reported a wider-than-expected first quarter loss and issued weak guidance for the current quarter, sending shares down 6.6% in after-hours trading.
The specialty retailer of apparel and accessories posted a Q1 loss of $0.79 per share, $0.01 worse than analyst estimates of a $0.78 per share loss. Revenue rose 3.9% YoY to $184.3 million, beating expectations of $182.2 million. Comparable sales increased 5.5% in the quarter.
For the second quarter, Zumiez forecast a loss per share between $0.09 and $0.24, well below the consensus estimate for earnings of $0.06 per share. The company expects Q2 revenue of $207 million to $214 million, compared to analyst projections of $211 million.
"Our North American business showed resilience during the first quarter despite increased macroeconomic uncertainty following the implementation of higher tariffs," said CEO Rick Brooks. He noted strong full-price selling drove North America sales growth above Q4 levels.
The company’s international business was "tougher" in Q1, with sales turning slightly negative. Zumiez is focused on introducing new products to drive demand while controlling costs to improve margins overseas.
During the quarter, Zumiez repurchased 1.8 million shares at an average cost of $13.82 per share. The board approved a new $15 million stock buyback program through June 2026.
The retailer plans to open approximately 9 new stores in fiscal 2025, including up to 6 in North America, 2 in Europe and 1 in Australia.
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