Fourth Quarter Comparable Sales Increased 5.9%
Fourth Quarter Gross Margin Increased 190 Basis Points to 36.2%
Fourth Quarter Earnings Per Share Improved to $0.78 from ($1.73)
First Quarter-To-Date Comparable Sales up 4.3%, Led by North America Up 6.4%
Board Approves New Stock Repurchase Authorization

LYNNWOOD, Wash., March 13, 2025 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the fourth quarter and year ended February 1, 2025.

Net sales for the fourth quarter ended February 1, 2025 (13 weeks) decreased 0.9% to $279.2 million from $281.8 million in the fourth quarter ended February 3, 2024 (14 weeks). Comparable sales for the thirteen weeks ended February 1, 2025 increased 5.9%. Net income in the fourth quarter of fiscal 2024 was $14.8 million, or $0.78 per share, compared to a net loss of $33.5 million, or $1.73 per share, in the fourth quarter of the prior fiscal year. Fiscal 2023 fourth quarter results reflect a goodwill impairment charge of $41.1 million, or $2.13 per share after-tax, related to the Company’s decision to slow store growth and focus on profitability in Europe and the corresponding impact on the future cash flow projections of its Blue Tomato business.

Total net sales for the twelve months (52 weeks) ended February 1, 2025, increased 1.6% to $889.2 million from $875.5 million reported for the twelve months (53 weeks) ended February 3, 2024. Comparable sales increased 4.0% for fifty-two weeks ended February 1, 2025. Net loss for fiscal 2024 was $1.7 million, or $0.09 per share. Net loss for fiscal 2023 inclusive of the $41.1 million goodwill impairment charge was $62.6 million, or $3.25 per share.

As of February 1, 2025, the Company had cash and current marketable securities of $147.6 million compared to cash and current marketable securities of $171.6 million as of February 3, 2024. The decrease was primarily driven by share repurchases and capital expenditures partially offset by cash flow from operations.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We delivered a substantial improvement in fourth quarter operating profitability driven by significant gross margin expansion and a meaningful reduction in operating expenses. Comparable sales increased by 5.9% led by North America and while choppy, represents continued progress in growing the top-line and bottom line. This unexpected choppiness is indicative of the environment we have been operating in for some time, and we expect it will continue. Our plan for 2025 is to stay the course and focus on executing the product and customer engagement initiatives that have fueled our third consecutive quarter of positive comps while staying nimble and financially flexible to deliver enhanced profitability. We have demonstrated our ability to navigate challenging cycles and emerge stronger and I am confident that Zumiez is on right course to repeat this accomplishment once again.”

Fiscal First Quarter-to-Date Sales
Total first quarter-to-date sales for the four weeks ended March 1, 2025 increased 1.7%, from the four weeks ended March 2, 2024. Comparable sales for the four weeks ended March 1, 2025 increased 4.3% from the four weeks ended March 2, 2024. From a regional perspective, comparable sales for North America increased 6.4% and other international comparable sales decreased 3.7%.

Fiscal 2025 First Quarter Outlook
The Company is introducing guidance for the three months ending May 3, 2025. Net sales are projected to be in the range of $179 to $183 million. Earnings per share are expected to be between a loss of $0.72 and a loss of $0.82.

The Company 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.

Stock Repurchase Authorization
On March 12, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 million of common stock. The repurchase program is expected to continue through March 31, 2026 unless the time period is extended or shortened by the Board of Directors.

Conference call Information
To access the conference call, please pre-register using this link ( Registration Link ) Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com . To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com .

About Zumiez Inc.

Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of March 1, 2025, we operated 729 stores, including 569 in the United States, 46 in Canada, 87 in Europe and 27 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.

Safe Harbor Statement

Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended January 28, 2023 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.


ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
February 1, % of February 3, % of
2025 Sales 2024 Sales
(Unaudited) (Unaudited)
Net sales $ 279,160 100.0 % 281,822 100.0 %
Cost of goods sold 178,127 63.8 % 185,171 65.7 %
Gross profit 101,033 36.2 % 96,651 34.3 %
Selling, general and administrative expenses 80,903 29.0 % 129,436 45.9 %
Operating profit (loss) 20,130 7.2 % (32,785 ) -11.6 %
Interest income, net 742 0.3 % 941 0.3 %
Other (expense) income , net (915 ) -0.3 % 545 0.2 %
Earnings (loss) before income taxes 19,957 7.2 % (31,299 ) -11.1 %
Provision for income taxes 5,203 1.9 % 2,188 0.8 %
Net income (loss) $ 14,754 5.3 % $ (33,487 ) -11.9 %
Basic earnings (loss) per share $ 0.80 $ (1.73 )
Diluted earnings (loss) per share $ 0.78 $ (1.73 )
Weighted average shares used in computation of earnings per share:
Basic 18,464 19,323
Diluted 18,806 19,323
Fiscal Year Ended
February 1, % of February 3, % of
2025 Sales 2024 Sales
(Unaudited)
Net sales $ 889,202 100.0 % $ 875,486 100.0 %
Cost of goods sold 586,162 65.9 % 594,596 67.9 %
Gross profit 303,040 34.1 % 280,890 32.1 %
Selling, general and administrative expenses 301,090 33.9 % 345,679 39.6 %
Operating profit (loss) 1,950 0.2 % (64,789 ) -7.4 %
Interest income, net 4,205 0.5 % 3,522 0.4 %
Other expense, net (2,078 ) -0.2 % (611 ) -0.1 %
Earnings (loss) before income taxes 4,077 0.5 % (61,878 ) -7.1 %
Provision for income taxes 5,790 0.7 % 732 0.1 %
Net income $ (1,713 ) -0.2 % $ (62,610 ) -7.2 %
Basic earnings per share $ (0.09 ) $ (3.25 )
Diluted earnings per share $ (0.09 ) $ (3.25 )
Weighted average shares used in computation of earnings per share:
Basic 18,918 19,290
Diluted 18,918 19,290



ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
February 1, 2025 February 3, 2024
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 112,668 $ 88,875
Marketable securities 34,890 82,704
Receivables 12,825 13,780
Inventories 146,648 128,827
Prepaid expenses and other current assets 15,354 12,401
Total current assets 322,385 326,587
Fixed assets, net 80,178 90,508
Operating lease right-of-use assets 183,235 196,775
Goodwill 15,258 15,374
Intangible assets, net 13,577 14,200
Deferred tax assets, net 8,684 8,623
Other long-term assets 11,564 12,159
Total long-term assets 312,496 337,639
Total assets $ 634,881 $ 664,226
Liabilities and Shareholders’ Equity
Current liabilities
Trade accounts payable $ 49,389 $ 38,885
Accrued payroll and payroll taxes 21,962 18,431
Operating lease liabilities 56,009 60,885
Other current liabilities 28,154 25,886
Total current liabilities 155,514 144,087
Long-term operating lease liabilities 143,812 159,877
Other long-term liabilities 6,578 7,052
Total long-term liabilities 150,390 166,929
Total liabilities 305,904 311,016
Shareholders’ equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding — —
Common stock, no par value, 50,000 shares authorized; 19,159 shares issued and outstanding at February 1, 2025 and 19,833 shares issued and outstanding at February 3, 2024 203,581 196,144
Accumulated other comprehensive loss (23,778 ) (19,027 )
Retained earnings 149,174 176,093
Total shareholders’ equity 328,977 353,210
Total liabilities and shareholders’ equity $ 634,881 $ 664,226



ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Fiscal Year Ended
February 1, 2025 February 3, 2024
(Unaudited)
Cash flows from operating activities:
Net (loss) income $ (1,713 ) $ (62,610 )
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation, amortization and accretion 22,160 22,763
Noncash lease expense 64,415 68,164
Deferred taxes (609 ) (1,050 )
Stock-based compensation expense 6,831 7,022
Impairment of goodwill and long-lived assets 1,473 43,904
Foreign currency transaction loss 2,145 25
Other 178 181
Changes in operating assets and liabilities: - -
Receivables 1,533 6,859
Inventories (21,687 ) 5,809
Prepaid expenses and other assets 1,558 (1,817 )
Trade accounts payable 11,698 (907 )
Accrued payroll and payroll taxes 3,768 2,170
Income taxes payable 4,705 2,090
Operating lease liabilities (73,564 ) (78,983 )
Other liabilities (2,190 ) 1,135
Net cash provided by (used in) operating activities 20,701 14,755
Cash flows from investing activities:
Additions to fixed assets (15,004 ) (20,350 )
Purchases of marketable securities and other investments (2,980 ) (38,348 )
Sales and maturities of marketable securities and other investments 50,586 50,150
Net cash provided by (used in) investing activities 32,602 (8,548 )
Cash flows from financing activities:
Proceeds from revolving credit facilities 3,220 49,440
Payments on revolving credit facilities (3,220 ) (49,440 )
Proceeds from issuance and exercise of stock-based awards 606 704
Payments for tax withholdings on equity awards — —
Common stock repurchased (25,206 ) —
Net cash (used in) provided by financing activities (24,600 ) 704
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (1,458 ) (1,080 )
Net change in cash, cash equivalents, and restricted cash 27,245 5,831
Cash, cash equivalents, and restricted cash, beginning of period 94,284 88,453
Cash, cash equivalents, and restricted cash, end of period $ 121,529 $ 94,284
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes $ 2,490 $ 2,065
Accrual for purchases of fixed assets 109 800


Company Contact:
Darin White
Vice President of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337

Investor Contact:
ICR
Brendon Frey
(203) 682-8200