Zumiez Inc. on Thursday announced sales for the first quarter rose 4.9% to $193.3 million, on the back of sustained comparable sales growth across North American and Europe.
The Lynnwood, Washington-based company said comparable sales for the quarter lifted 4% for the second consecutive year, driven by ongoing strength in the firm’s North American business and strong mid-single digit comps in Europe.
For the 13 weeks ending May 2, the youth apparel retailer said net losses narrowed slightly to $13.3 million, or $0.82 per share, compared to a net loss of $14.3 million, or $0.79 per share, in the first quarter of the prior fiscal year.
“Sales trends in the U.S. remained nicely positive during the quarter despite increasing pressure on consumers, underscoring the success of our recent merchandise assortments and customer experience initiatives,” said Rick Brooks, chief executive officer of Zumiez Inc., whose Blue Tomato locations are located across Europe including Italy, Norway, Belgium, and Germany.
“While still in the early innings, the work we are doing to replicate our full-price selling model in Europe is gaining traction, contributing to year-over-year improvements in sales and margin. Despite some softness in North America during the May period, we are encouraged that we have been able to grow sales and margin through the challenges in the macro environment and feel we are well positioned to capitalize during the key back-to-school and holiday seasons when the consumer has a reason to come out and shop.”
Looking ahead, Zumiez said sales for the next quarter are projected to be in the range of $210 to $215 million. Earnings per share are expected to be between a loss of $0.23 and a loss of $0.08.
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