Zumiez Inc. had comparable store sales decrease 13.1% for the four-week period ended Nov. 1, 2008 and total net sales increase 1.2% to $25.0 million. The significant drop in comps caused the company to re-think its fourth quarter expectations.
“Given the increasingly difficult consumer environment and the associated highly promotional retail atmosphere, we experienced weakening sales and product margins that were below our August and year-to-date trend of negative 1%…” said CEO Rick Brooks. “As we look to the future, it is difficult to predict how the consumer will respond this holiday season due to extraordinary recent macroeconomic events and record low consumer confidence, therefore we have lowered our fourth quarter sales and earnings expectations.”
The guidance for comparable store sales for the fourth quarter has been revised from a negative low single-digit decrease to a negative mid-teen decrease. The companys outlook on diluted earnings per share for the fiscal year ending Jan. 31, 2009 has been updated to be in the range of 52 cents to 57 cents.
Looking beyond fiscal 2008, the company is also lowering inventory commitments, reducing new store growth of 20% to no more than 15%, and planning to reduce its capital expenditures in 2009 to approximately $28 million