Zumiez, Inc. reported net sales for the fourth quarter ended January 28 decreased 19.2 percent to $280.1 million from $346.7 million in the fourth quarter ended January 29, 2022. Net income in the fourth quarter was $11.4 million, or 59 cents per diluted share, compared to net income of $38.2 million, or $1.70 per diluted share, in the prior-year fourth quarter.
Total net sales for the fiscal year decreased 19.0 percent to $958.4 million from $1.18 billion reported for the prior year. Net income for fiscal 2022 was $21.0 million, or $1.08 per diluted share, compared to net income of $119.3 million, or $4.85 per diluted share, for fiscal 2021.
At January 28, 2023, the company had cash and current marketable securities of $173.5 million compared to cash and current marketable securities of $294.5 million at January 29, 2022. The decrease was driven by share repurchases of $87.9 million and capital expenditures of $25.6 million over this time period.
Rick Brooks, CEO of Zumiez, Inc., stated, “We concluded a challenging fiscal 2022 with fourth-quarter results that were ahead of our guidance, but below year-ago levels. While the operating environment has been difficult and our recent financial performance disappointing, our commitment to serving consumers with world-class service and highly differentiated, sought-after merchandise, is as strong as ever and has the business positioned to recover quickly when the macroeconomic conditions improve. I am confident that the channel-less retail model and strong corporate culture we have built and evolved over Zumiez’s 45-year history and brought to Canada, Europe and Australia will continue to separate our banners from the competition and drive profitable growth for our shareholders over the long-term.”
Looking at the current year-to-date period, total first quarter-to-date sales for the 35 days ended March 4 decreased 15.5 percent, compared with the same 35-day time period in the prior-year quarter. Total comparable sales for the 35-day period ending March 4, 2023, decreased 16.6 percent from the comparable period in the prior year.
Zumiez expects net sales for the three months ending April 29 to be in the range of $178 million to $184 million, which would indicate another strong double-digit decline from the $221 million in sales in the year-ago first quarter when sales fell 21 percent versus the previous-year comp period ended May 1, 2021. Earnings (Loss) per share are expected to be between a loss of 85 cents and a loss of 95 cents.
The company currently intends to open approximately 23 new stores in fiscal 2023, including up to 8 stores in North America, 10 stores in Europe and 5 stores in Australia.
Photo courtesy Zumiez