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Zumiez 2025 First Quarter Results with resilient North American Sales offset by weaker European performance

Net sales for the first quarter ended May 3, 2025 increased 3.9% to $184.3 million from $177.4 million in the first quarter ended May 4, 2024 Comparable sales for the thirteen weeks ended May 3, 2025, increased 5.5%. Net loss in the first quarter of fiscal 2025 was $14.3 million compared to a net loss of $16.8 million,, in the first quarter of the prior fiscal year.

On May 3, 2025, the Company had cash and current marketable securities of $101.0 million compared to cash and current marketable securities of $146.6 million on May 4, 2024. The decrease was primarily driven by $50.4 million related to share repurchases and $14.7 million of capital expenditures partially offset by $17.2 million of cash flow from operations.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our North American business showed resilience during the first quarter despite increased macroeconomic uncertainty following the implementation of higher tariffs. Consumers continue to respond positively to our merchandise assortments and shopping experience evidenced by strong full price selling that drove sales growth above the Q4 run rate for North America. In response to the current global trade environment, we have further diversified our North America supply chain and expect a meaningful reduction in exposure to China by the end of this year. While the potential impact on consumer sentiment from ongoing trade negotiations is unknown, we are pleased with our current momentum in North America and confident in our ability to outperform the market over the remainder of the year. Internationally, our business was tougher in the first quarter with sales turning slightly negative. We remain focused on introducing new and unique products to drive demand while controlling costs to improve margins. Consolidated results, removing the previously mentioned unplanned legal charge, exceeded the high end our guidance for both Sales and loss per share while also showing meaningful improvement to the prior year.”

Following the launch of over 120 new brands in 2024 and 150 brands in 2023, they remain committed to bringing fresh, unique products to market that customers can’t find elsewhere. These newer brands now represent a meaningfully larger portion of sales compared to historical levels, confirming that the curation strategy is working. Private label expansion has also exceeded expectations, reaching nearly 28% of total sales in 2024 and increasing to 30% in the first quarter of 2025. This is up from 23% in 2023, and just 11%, 5 years ago.

In Europe, the market environment remains challenging. After making progress in 2024 in sales, product margin and operating results, 2025 is off to a tougher start. Inventory in Europe for the first quarter was down at the same level as the prior year. With the slower start, Blue Tomato are actively working to drive the top line through new and unique product selection, while also remaining focused on full price selling and controlling costs. What really matters in Europe is the fourth quarter, where over 40% of sales made. So they are very focused on bringing newness into the business for that period

May 2025 Sales

Net sales for the four-week period ended May 31, 2025, increased 0.7% compared to the four-week period ended June 1, 2024. Comparable sales for the four-week period ending May 31, 2025, increased 1.4% from the comparable period in the prior year.

Fiscal 2025 Second Quarter Outlook

Based on quarter-to-date results, current tariffs rates, and actions taken thus far to mitigate the increased costs from higher tariffs, the Company expects net sales to be in the range of $207 to $214 million and loss per share to be between $0.09 to $0.24 for the three months ending August 2, 2025. These estimates are based upon the current tariff environment  today and do not consider future material changes that occur after the date of this release.

The Company also currently intends to open approximately 9 new stores in fiscal 2025, including up to 6 stores in North America, 2 stores in Europe and 1 store in Australia.