Zumiez sales jump helps narrow losses
Zumiez Inc. reported an 8.1% percent increase in sales to $210.2 million in the second quarter, on the back of accelerated comparable sales during the three months ending August 3.
The Washington-based fashion retailer said comparable sales for the thirteen weeks increased 3.6%, helping the company narrow losses to $0.8 million, or $0.04 per share, compared to a net loss of $8.5 million, or $0.44 per share, in the second quarter of the prior fiscal year.
As a result of the strong second quarter, total net sales for first half increased 2.7% to $387.6 million, with comps lifting 0.8%. The men’s and women’s youth retailer narrowed lossed during the six months to $17.6 million, or $0.91 per share, compared to a net loss for the first six months of fiscal 2023 of $26.9 million, or $1.40 per share.
“We experienced a noticeable acceleration in our sales trend as the second quarter unfolded, with July North America comparable sales increasing in the high-single digits. The work our merchandise teams have done refining our apparel and footwear assortments combined with enhanced customer engagement tactics from our in-store and online sales associates led to better than expected second quarter results and a strong back-to-school season in North America,” said Rick Brooks, chief executive officer of Zumiez Inc.
“With back-to-school a good indicator for holiday demand in the past, we are encouraged about our prospects for growth over the remainder of fiscal 2024. Looking farther ahead, we are confident that our global customer centric operating model has the company positioned to continue building on the progress we’ve made towards delivering enhanced value for our shareholders in the years to come.”
Looking ahead, the company said it intends to open approximately 9 new stores in fiscal 2024, including up to 3 stores in North America, 3 stores in Europe and 3 stores in Australia, as well as closing approximately 25 stores by the end of the year.
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