Zumiez (NASDAQ:ZUMZ) shares are trending lower in after-hours as Wall Street digests above consensus Q1 results against soft profit guidance for Q2 indicating a 6th consecutive quarterly loss.
Shares are now down by 2%, reversing a 3% knee-jerk gain.
The retailer, which sells apparel, footwear, skateboards, and snowboards, reported a narrower loss of $0.86 per share on a 3% decline in revenue to $177.4M in sales, both of which were better than estimates. Comparable sales were down 0.2% from a year ago, and gross margin widened 230 basis points to 29.2%.
At the end of the quarter, the company had cash and current marketable securities of $146.6M versus $155.3M at the end of the same quarter last year. The decrease was driven by capital expenditures of $17.5M over this time period, offset by $9.1M provided by operating activities.
For Q2, the outlook is mixed as sales are projected to be within the range of $199M to $204M which is up from $194.4M in the same quarter last year and above the consensus estimate of $190.6M. And while Zumiez (ZUMZ) is also expected to report a narrower loss from a year ago of ($0.30) to ($0.40) per share, this is a significant miss from the consensus estimate for a loss of just $0.11 per share.
In fiscal 2024, the company plans to open ~10 new stores including 3 in North America, 3 in Europe, and 4 in Australia.
In concert with its latest quarterly results, Zumiez (ZUMZ) said it had approved the repurchase of up to $25M in stock through June 30, 2025.
