On Thursday after the bell, shares of Zumiez (NASDAQ: ZUMZ) fell over 5% after the company reported first quarter loss as well as poor comparable store sales. Zumiez is a retailer of apparel, footwear, equipment and accessories for young men and women. The company has reported Q1 results of -$0.08 EPS which beat consensus estimates of -$0.11, and revenue of $173M (-2.6% year-to-year) that beat analysts’ expectations of $172.42M.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “While our monthly comparable sales trends improved as the quarter progressed, the quarter was more challenging than expected. We did experience pockets of strength within our merchandise assortments, however it wasn’t enough to offset the general weakness in consumer demand for our major categories. During this period of instability for the retail industry, we are taking actions aimed at preserving near-term profitability while continuing to make the necessary investments in the business to best position the company for future success. We remain confident that we have the right strategies in place to capitalize on the domestic and international growth opportunities that lie ahead and return greater value to our shareholders over the long-term.”
During the first quarter, same-store sales for the thirteen weeks ended April 30, 2016 declined as much as 7.5% compared to 2015’s Q1 3% growth. This marks the company’s 14th consecutive month of negative same-store sales for May. Same-store sales were down 7.6% for the month, compared to a 2.2% decline last year.
Net sales are projected to be in the range of $172 to $176 million resulting in net loss per diluted share of approximately -$0.09 to -$0.13. This guidance is based on an anticipated comparable sales decrease in the 6% to 8% range for the second quarter of fiscal 2016. The Company plans to open nearly 29 new stores in fiscal 2016, including up to 6 stores in Canada and 7 stores in Europe.