Zumiez Inc. Reports Positive Growth in Q2 Fiscal 2024
Quarterly Sales and Financial Highlights
Zumiez Inc. has showcased robust performance in the second quarter of fiscal 2024, reporting a 3.6% increase in comparable sales, marking a significant uptrend in their business metrics. Additionally, gross margin rose by 250 basis points, reaching 34.2%. The company has also reported an improvement in losses per share, now at ($0.04), compared to ($0.44) from the previous fiscal year.
Overview of Financial Performance
During this quarter, Zumiez reported net sales of $210.2 million, up 8.1% from $194.4 million in the same period last year. This growth can be attributed to a positive retail calendar shift that added approximately 530 basis points to the sales growth. Adjusting for this shift, the company still showed a comparable sales increase of 3.6%.
Company’s Year-to-Date Performance
For the first half of fiscal 2024, Zumiez recorded a net sales increase of 2.7%, totaling $387.6 million, compared to $377.3 million year-over-year. Comparable sales for the first six months increased by 0.8%. The financial losses for this period were reduced, with a net loss of $17.6 million or $0.91 per share, down from a loss of $26.9 million or $1.40 per share in the prior year.
Cash Position and Shareholder Value
As of the latest reporting period, Zumiez has cash and current marketable securities amounting to $127 million. This reflects a decline from the previous $140 million largely due to share repurchases and capital expenditures. During the quarter, the company bought back approximately 0.9 million shares at an average cost of $20.55 per share, totaling $19.4 million.
Looking Ahead: Fiscal 2024 Projections
Looking ahead, Zumiez anticipates opening around nine new stores across various markets while closing approximately 25 stores by year-end. The guidance for the third quarter projects net sales in the range of $221 to $225 million, reflecting growth between 2% to 4% compared to the previous year. Adjusting for the calendar shift, they expect sales growth between 7% to 9%.
CEO Insights on Future Strategies
Rick Brooks, CEO of Zumiez, noted a strong acceleration in sales trends as the quarter progressed, particularly highlighting positive returns during the back-to-school shopping season. He emphasizes that their focused efforts on refining product assortments and enhancing customer engagement strategies have resulted in encouraging financial results. He is optimistic about the holiday season and believes the company’s customer-centric approach is set to foster long-term growth and shareholder value.
Frequently Asked Questions
What were Zumiez Inc.'s net sales for Q2 FY2024?
Zumiez Inc. reported net sales of $210.2 million for the second quarter of fiscal 2024.
How much did comparable sales increase in the second quarter?
Comparable sales increased by 3.6% compared to the same period last year.
What improvements were seen in Zumiez’s gross margin?
The gross margin improved by 250 basis points, reaching 34.2%.
What is the outlook for the third quarter of fiscal 2024?
Zumiez expects net sales to be in the range of $221 to $225 million, indicating a growth of 2% to 4% from the prior year.
What has been the impact of back-to-school sales?
Back-to-school sales have shown a strong performance, which is seen as a positive indicator for upcoming holiday demand.
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