Zumiez, Inc. reported that total net sales decreased 4.4 percent for the nine-week holiday selling period ended December 30, 2023, compared to the nine-week period ended December 31, 2022. During the same period, comparable sales decreased 5.9 percent.
From a regional perspective, North America net sales for the holiday period decreased 6.6 percent year-over-year, with comparable sales over the period declining 6.3 percent.
Other International net sales, which include Europe and Australia, increased 4.2 percent for the holiday period, with comparable sales down 4.2 percent over the same period.
Excluding the impact of foreign currency translation, North America net sales decreased 6.6 percent, and Other International net sales increased 0.8 percent for the nine-week period compared to the prior year.
During the nine-week period, the men’s business posted positive comp sales while comps for all other categories were down versus the prior-year period, with the women’s business the most negative, followed by hardgoods, accessories and footwear.
Based on results for the nine-week period ended December 30, Zumiez now forecasts fiscal 2023 fourth-quarter sales to be near the low end of its guidance range of $275 million to $281 million and fourth-quarter earnings per share and also near the low end of its range of 24 cents to 34 cents.
The fourth quarter of fiscal 2023 includes an additional week compared to the fourth quarter of fiscal 2022. The company expects that the incremental week, included in the guidance above, will positively impact the year-over-year growth rate for the fourth quarter of approximately 4 percent.
“After an encouraging start to the holiday season relative to trends earlier in the year, sales decelerated after the Black Friday/Cyber Monday weekend in the weeks leading up to Christmas,” shared Rick Brooks, CEO of Zumiez, Inc. “Consumers continue to be very selective about when they shop and what they purchase. While the adjustments we’ve made to our merchandise assortments have positively impacted high-demand shopping days, it hasn’t been enough to offset sustained periods of softer-than-normal traffic patterns.”
Brooks continued noting that unseasonably warm weather in many parts of the U.S. and minimal snowfall in key winter sports regions in North America and Europe were also a headwind to the retailer’s recent performance.
“With a long history of successfully navigating difficult operating environments combined with a strong balance sheet, we are confident that we’ll emerge from the current down cycle well positioned to capitalize on the long-term growth opportunities, Brooks concluded.”
Image courtesy Zumiez, Inc.
