Zumiez reports Q4 EPS ($1.73), consensus 26c

Reports Q4 revenue $281.82M, consensus $275.87M. Net loss in Q4 was $33.5 million, or $1.73 per share, compared to net income of $11.4M, or 59c per diluted share, in the fourth quarter of the prior fiscal year. Q4 results reflect a goodwill impairment charge of $41.1M, or $2.13 per share after-tax, related to the company’s decision to slow store growth and focus on profitability in Europe and the corresponding impact on the future cash flow projections of its Blue Tomato business. Rick Brooks, CEO of Zumiez Inc., stated, “We concluded a difficult year with stronger than anticipated fourth quarter results as our consolidated monthly sales trend accelerated in January. Within our recent performance, there were multiple areas that showed a marked improvement, led by our North American men’s business which grew year-over-year in the fourth quarter. While we are encouraged by our stronger than anticipated fourth quarter and sustained quarterly improvements as we moved through the year, the global operating environment remains challenging and therefore we are further adjusting our strategies to balance the interests of our shareholders and customers. For 2024, this includes slowing store growth in Europe and focusing on increasing the productivity of our current footprint in the region. We are also continuing to close underperforming stores in the U.S., reducing labor costs to align with lower revenue levels, and looking to drive even greater efficiencies throughout the organization. At the same time, we’ll invest to ensure we are winning with the consumer by launching new, highly sought-after brands, maintaining our best-in-class service levels, and strengthening our customer connections. We have successfully navigated down cycles before and I am confident in our teams’ ability to return the Company to growth and enhanced profitability both in the near-term and the years ahead.”