Zumiez Inc. (NASDAQ:ZUMZ), the specialty apparel retailer, posted a second-quarter loss and guided for 3Q sales that were below analysts’ estimates, sending its shares lower in Friday pre-market trading.
The Lynwood, Washington-based company said it faced headwinds as retailers resorted to cutting prices due to pressure on consumer spending.
Revenue for the quarter ended July 29, 2023, fell 11.6% to $194.4 million but came in ahead of analysts’ consensus estimates of $190 million.
While it swung to a loss per share of $0.44, from earnings of $0.16 a year earlier, it came in ahead of the $0.67 loss expected by analysts, according to Zacks Investment Research.
“While our North American business remains under pressure, second-quarter sales trends improved month-to-month and our year-over-year top-line performance was meaningfully better compared with the first quarter,” CEO Rick Brooks said in a statement.
“With continued headwinds facing consumer discretionary spending combined with a heightened promotional marketplace, we are pleased with the progress we’ve made positioning our business for the second half of 2023.
The company said it expects third-quarter revenue of $211 million to $216 million, below the $278.6 million pencilled in by analysts.
Zumiez operates 761 stores, including 609 in the US, 49 in Canada, 81 in Europe, and 22 in Australia as well as the e-commerce sites zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.
Ahead of the opening bell, its shares were down 5.4% at $17.65.
Contact the author at stephen.gunnion@proactiveinvestors.com