Zumiez sees Q4 EPS at lower end of 24c- 34c, consensus 26c

Zumiez young men and women announced that the Company’s total net sales decreased 4.4% for the nine-week period ended December 30, , compared to the nine-week period ended December 31, 2022. During the same period comparable sales decreased 5.9%. From a regional perspective, quarter-to-date North America net sales decreased 6.6% from the prior year with comparable sales over this period down 6.3%. Other international net sales, which consists of Europe and Australia, increased 4.2% quarter to date with comparable sales down 4.2% over the same period. Excluding the impact of foreign currency translation, North America net sales decreased 6.6% and other international net sales increased 0.8% for the nine-week period compared to the prior year. During the nine-week period, men’s posted positive comparable sales while all other categories were down in comparable sales from the prior year with Women’s being the most negative category, followed by Hardgoods, accessories and Footwear. Based on results for the nine-week period ended December 30 the Company now anticipates fiscal 2023 fourth quarter sales to be near the low end of its guidance range of $275M to $281M and fourth quarter earnings per share also to be also near the low end of its range of $ 24c to 34c. As a reminder, the fourth quarter of fiscal 2023 includes an additional week compared to the fourth quarter of fiscal 2022. The Company currently anticipates that this incremental week, which is included in the guidance above, will have a positive impact on the year-over-year growth rate for the fourth quarter of approximately 4%. Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “After an encouraging start to the holiday season relative to trends earlier in the year, sales decelerated after the Black Friday / Cyber Monday weekend in the weeks leading up to Christmas. Consumers continue to be very selective about when they shop and what they purchase. While the adjustments we’ve made to our merchandise assortments have positively impacted high demand shopping days, it hasn’t been enough to offset sustained periods of softer than normal traffic patterns. Unseasonably warm weather in many parts of the U.S. along with minimal snowfall in key winter sports regions in both North America and Europe were also a headwind to our recent performance. With a long history of successfully navigating difficult operating environments combined with a strong balance sheet, we are confident that we’ll emerge from the current downcycle well positioned to capitalize on the long-term growth opportunities.” Consensus for Q4 revenue is 276.48M..