Zumiez Inc. reduced its net loss in the first quarter ended May 3 as same-store sales improved 5.5 percent on strong full-price selling. Sales topped Zumiez’s forecast for the quarter while earnings were in line.
Net sales for the first quarter ended May 3, 2025 (13 weeks) increased 3.9 percent to $184.3 million from $177.4 million in the first quarter ended May 4, 2024 (13 weeks). Comparable sales for the thirteen weeks ended May 3, 2025, increased 5.5 percent.
Net loss in the first quarter of fiscal 2025 was $14.3 million, or 79 cents per share, compared to a net loss of $16.8 million, or 86 cents, in the first quarter of the prior fiscal year. The first quarter of 2025 was negatively impacted by $2.9 million, or approximately 13 cents per diluted share related to the settlement of a wage and hours lawsuit in California.
Zumiez’s forecast had called for sales in the range of $179 to $183 million and EPS to show a loss in the range of 72 cents to 82 cents.
On May 3, 2025, the company had cash and current marketable securities of $101.0 million compared to cash and current marketable securities of $146.6 million on May 4, 2024. The decrease was primarily driven by $50.4 million related to share repurchases and $14.7 million of capital expenditures partially offset by $17.2 million of cash flow from operations. The company repurchased 1.8 million shares during the first quarter of 2025 at an average cost including commission of $13.82 per share and a total cost of $25.2 million.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our North American business showed resilience during the first quarter despite increased macroeconomic uncertainty following the implementation of higher tariffs. Consumers continue to respond positively to our merchandise assortments and shopping experience evidenced by strong full-price selling that drove sales growth above the Q4 run rate for North America. In response to the current global trade environment, we have further diversified our North America supply chain and expect a meaningful reduction in exposure to China by the end of this year. While the potential impact on consumer sentiment from ongoing trade negotiations is unknown, we are pleased with our current momentum in North America and confident in our ability to outperform the market over the remainder of the year. Internationally, our business was tougher in the first quarter with sales turning slightly negative. We remain focused on introducing new and unique products to drive demand while controlling costs to improve margins. Consolidated results, removing the previously mentioned unplanned legal charge, exceeded the high end our guidance for both Sales and loss per share while also showing meaningful improvement to the prior year.”
May 2025 Sales
Net sales for the four-week period ended May 31, 2025, increased 0.7 percent compared to the four-week period ended June 1, 2024. Comparable sales for the four-week period ending May 31, 2025, increased 1.4 percent from the comparable period in the prior year.
Fiscal 2025 Second Quarter Outlook
Based on quarter-to-date results, current tariffs rates, and actions taken thus far to mitigate the increased costs from higher tariffs, the company expects net sales to be in the range of $207 to $214 million and loss per share to be between 9 cents to 24 cents for the three months ending August 2, 2025. These estimates are based upon the current tariff environment as we know it today and do not consider future material changes that occur after the date of this release.
The company currently intends to open approximately 9 new stores in fiscal 2025, including up to 6 stores in North America, 2 stores in Europe and one store in Australia.
Stock Repurchase Authorization
On June 4, 2025, Zumiez Inc. approved the repurchase of up to an aggregate of $15 million of common stock. The repurchase program is expected to continue through June 30, 2026 unless the time period is extended or shortened by the Board of Directors.
