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Zumiez Inc. Announces Fiscal 2025 First Quarter Results

First Quarter Comparable Sales Increased 5.5%
First Quarter North America Comparable Sales Increased 7.4%
Board Approves New Stock Repurchase Authorization

LYNNWOOD, Wash., June 05, 2025 (GLOBE NEWSWIRE) — Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the first quarter ended May 3, 2025.

Net sales for the first quarter ended May 3, 2025 (13 weeks) increased 3.9% 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%. Net loss in the first quarter of fiscal 2025 was $14.3 million, or $0.79 per diluted share, compared to a net loss of $16.8 million, or $0.86 per diluted share, in the first quarter of the prior fiscal year. The first quarter of 2025 was negatively impacted by $2.9 million, or approximately $0.13 per diluted share related to the settlement of a wage and hours lawsuit in California.

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% compared to the four-week period ended June 1, 2024. Comparable sales for the four-week period ending May 31, 2025, increased 1.4% 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 $0.09 to $0.24 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 1 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.

Conference call Information

To access the conference call, please pre-register using this link (Registration Link). Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com.

About Zumiez Inc.

Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of May 31, 2025, we operated 731 stores, including 570 in the United States, 46 in Canada, 87 in Europe and 28 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, blue-tomato.com and fasttimes.com.au.

Safe Harbor Statement

Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company’s future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These forward-looking statements are based on management’s current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended February 1, 2025 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

 
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(In thousands, except per share amounts)
(Unaudited)
 
  Three Months Ended
  May 3, 2025 % of Sales  May 4, 2024 % of Sales
Net sales $184,343  100.0% $177,388  100.0%
Cost of goods sold  129,028  70.0%  125,489  70.7%
Gross profit  55,315  30.0%  51,899  29.3%
Selling, general and administrative expenses  75,187  40.8%  72,054  40.6%
Operating loss  (19,872) -10.8%  (20,155) -11.3%
Interest income, net  2,255  1.2%  1,321  0.7%
Other income (expense), net  1,844  1.0%  (767) -0.4%
Loss, before income taxes  (15,773) -8.6%  (19,601) -11.0%
Benefit from income taxes  (1,443) -0.8%  (2,821) -1.6%
Net loss $(14,330) -7.8% $(16,780) -9.4%
Basic loss per share $(0.79)   $(0.86)  
Diluted loss per share $(0.79)   $(0.86)  
Weighted average shares used in computation of loss per share        
Basic  18,116     19,465   
Diluted  18,116     19,465   

ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
 
  May 3, 2025 February 1, 2025 May 4, 2024
  (Unaudited)   (Unaudited)
Assets      
Current assets      
Cash and cash equivalents $62,519  $112,668  $74,864 
Marketable securities  38,443   34,890   71,757 
Receivables  14,839   12,825   13,415 
Inventories  149,864   146,648   146,815 
Prepaid expenses and other current assets  15,525   15,354   14,177 
Total current assets  281,190   322,385   321,028 
Fixed assets, net  79,703   80,178   89,831 
Operating lease right-of-use assets  185,901   183,235   192,607 
Goodwill  15,329   15,258   15,385 
Intangible assets, net  14,665   13,577   14,117 
Deferred tax assets, net  10,215   8,684   11,158 
Other long-term assets  12,097   11,564   12,495 
Total long-term assets  317,910   312,496   335,593 
Total assets $599,100  $634,881  $656,621 
       
Liabilities and Shareholders’ Equity      
Current liabilities      
Trade accounts payable $48,981  $49,389  $62,301 
Accrued payroll and payroll taxes  16,563   21,962   16,958 
Operating lease liabilities  54,388   56,009   59,191 
Other current liabilities  26,943   28,154   18,869 
Total current liabilities  146,875   155,514   157,319 
Long-term operating lease liabilities  147,398   143,812   155,040 
Other long-term liabilities  6,349   6,578   6,927 
Total long-term liabilities  153,747   150,390   161,967 
Total liabilities  300,622   305,904   319,286 
       
Shareholders’ equity      
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding         
Common stock, no par value, 50,000 shares authorized; 17,770 shares issued and outstanding at May 3, 2025 and 19,159 shares issued and outstanding at February 1, 2025  205,595   203,581   198,047 
Accumulated other comprehensive loss  (16,746)  (23,778)  (20,025)
Retained earnings  109,629   149,174   159,313 
Total shareholders’ equity  298,478   328,977   337,335 
Total liabilities and shareholders’ equity $599,100  $634,881  $656,621 

ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
  Three Months Ended
  May 3, 2025 May 4, 2024
Cash flows from operating activities:    
Net loss $(14,330) $(16,780)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation, amortization and accretion  5,387   5,561 
Noncash lease expense  14,639   14,522 
Deferred taxes  (1,473)  (2,590)
Stock-based compensation expense  1,828   1,675 
Impairment of long-lived assets  462   101 
Other  (765)  525 
Changes in operating assets and liabilities:    
Receivables  (758)  1,077 
Inventories  (119)  (18,876)
Prepaid expenses and other assets  299   1,754 
Trade accounts payable  (1,357)  21,763 
Accrued payroll and payroll taxes  (5,863)  (1,458)
Income taxes payable  (259)  (797)
Operating lease liabilities  (16,588)  (17,276)
Other liabilities  (3,187)  (7,778)
Net cash used in operating activities  (22,084)  (18,577)
Cash flows from investing activities:    
Additions to fixed assets  (2,219)  (2,546)
Purchases of marketable securities  (7,055)  (1,967)
Sales and maturities of marketable securities and other investments  5,086   12,510 
Net cash (used in) provided by investing activities  (4,188)  7,997 
Cash flows from financing activities:    
Proceeds from revolving credit facilities     3,220 
Payments on revolving credit facilities     (3,220)
Proceeds from issuance and exercise of stock-based awards  378   358 
Payments for tax withholdings on equity awards  (192)  (130)
Repurchase of common stock, including taxes  (25,215)   
Net cash (used in) provided by financing activities  (25,029)  228 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash  1,608   (245)
Net decrease in cash, cash equivalents, and restricted cash  (49,693)  (10,597)
Cash, cash equivalents, and restricted cash, beginning of period  121,517   94,284 
Cash, cash equivalents, and restricted cash, end of period $71,824  $83,687 
Supplemental disclosure on cash flow information:    
Cash paid during the period for income taxes $412  $654 
Accrual for purchases of fixed assets  982   2,094 
     
     

Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337

Investor Contact:
ICR
Brendon Frey
(203) 682-8200

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