Zumiez Inc. said a lack of strong fashion trends in the teen space has slowed traffic to its U.S. stores since early April and forecast it would lead to negative comps in the current quarter.

The action sports retailer was able to post comp store sales growth of 3.0 percent during the fiscal first quarter ended May 2, thanks to another strong performance by its Blue Tomato stores in Europe.

 
The comps growth, which includes online sales, came on top of 1.8 percent growth a year earlier, and contributed to a 9.0 percent increase in net sales, which reached $177.6 million during the quarter.
North America sales increased $10.6 million or 7 percent to $161.2 million, while European sales were up $4.1 million, or 33.6 percent in currency-neutral terms, to $16.4 million.

ZUMZ ended the quarter with 616 stores, including nine opened in North America during the period. In Europe, Blue Tomato has opened four of the six stores it plans to open this year. The company opened another 11 stores in North America in May, keeping it on track to open 51 new stores in North America in 2015.

Fewer people shopped at Zumiez stores during the quarter, but because they bought more, higher priced items per visit, the retailer's average ticket value increased.

“While the pace of our domestic business slowed more than anticipated in April, this was offset by strong sales gains in Europe where growth momentum continues,” said Zumiez CEO Rick Brooks in reference to Blue Tomato, an Austrian retailer ZUMZ acquired in 2012.

ZUMZ reported comparable store sales fell 2.2 percent in May compared to an increase of 3.6 percent a year earlier. Total net sales for the month increased 4.1 percent to $51.5 million.

Brooks attributed lackluster U.S. traffic to “a lack of clear fashion trends” that typically drive teenage shopping traffic and which can have outsized impacts during lower volume months like April and May.

Seasonal spring categories, including men's and women's shorts, board shorts, women's swim, tank tops, sunglasses, sandals all significantly underperformed in May. Women's overall comped up during the month, but Men's could not overcome the decline in seasonal product sales despite promising trends in denim and other pants.

Gross margin crept up 80 basis points to 31.8 percent primarily due to better product margins. Net income in the first quarter of fiscal 2015 was $2.8 million, or 9 cents per diluted share, down from $2.5 million and 9 cents a year earlier due to higher earn-out payments to charges related to earn-out payments to former owners of Blue Tomato.

ZUMZ ended the quarter with 40 percent more cash and marketable securities that a year earlier and 6.7 percent more inventory.

The company issued guidance for the current quarter that calls for comparable store sales to decline in the 3-to-5 percent range from a year earlier. That is expected to translate to net sales in the range of $179 to $183 million and net income of 12 to 15 cents, including a penny for charges associated with the acquisition of Blue Tomato.