LYNNWOOD - Zumiez Inc . (NASDAQ: NASDAQ:ZUMZ), a prominent retailer of youth apparel and accessories, reported a fourth-quarter EPS of $0.40, surpassing analyst expectations by $0.15. Despite this beat, the company's stock fell nearly 5% due to its first-quarter guidance falling significantly below consensus estimates.
For the fourth quarter ended February 3, 2024, Zumiez's revenue saw a marginal increase of 0.6% YoY, climbing to $281.8 million from $280.1 million in the prior year's quarter. This performance exceeded the consensus estimate of $275.18 million.
Yet, the company experienced a net loss of $33.5 million, or -$1.73 per share, compared to a net income of $11.4 million, or $0.59 per diluted share, in the same period last year. The loss included a substantial goodwill impairment charge related to the company's Blue Tomato business, as Zumiez reassesses its European expansion strategy.
CEO Rick Brooks highlighted the stronger-than-anticipated results in the fourth quarter, driven by growth in the North American men's business. Despite the difficult global operating environment, the company is adjusting its strategies to optimize shareholder and customer interests, including slowing store growth in Europe and focusing on increasing productivity.
Looking ahead, Zumiez provided guidance for the first quarter of fiscal 2025, projecting a loss per share between -$1.09 and -$1.19, starkly contrasting the analyst consensus of a $0.01 profit. Revenue forecasts for the same period are set between $167 million and $172 million, well below the consensus of $186.3 million.
The company's stock responded to the disappointing guidance with a 4.96% decline, as investors adjusted their expectations in light of the projected downturn. Zumiez's performance reflects the ongoing challenges in the retail sector and the company's strategic shifts to navigate a complex market landscape.
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