ZUMZ - Zumiez's Q1 Loss Narrows Comparable Sales Down Y/Y | Benzinga
Zumiez Inc. (NASDAQ: ZUMZ) reported better-than-expected results in first-quarter fiscal 2024. Also, sales beat the Zacks Consensus Estimate. The bottom line compared favorably with the respective year-ago fiscal quarter's reported figure, while the top line dipped year over year.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 19.3% compared with the industry's 13% growth.
Results in Detail
Zumiez posted a quarterly loss of 86 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.14 per share. The bottom line improved from a loss of 96 cents per share reported in the year-earlier quarter.
Total net sales of $177.4 million surpassed the consensus estimate of $174 million but dipped 3% from the year-ago period's reading. Comparable sales also dropped 2.4%, affected by lower transactions, somewhat offset by growth in dollars per transaction. Dollars per transaction were up on increased average unit retail and rise in units per transaction.
Zumiez Inc. Price, Consensus and EPS Surprise
Zumiez Inc. price-consensus-eps-surprise-chart | Zumiez Inc. Quote
We note that results were driven by North America as comparable sales for the region were positive for the first time since 2021, led by the men's business. The men's business was up year over year for the second straight quarter. The company's women's business performed well while hardgoods was under pressure. Zumiez witnessed higher average unit retail and units per transaction, offset by a decline in transactions. Merchandise margins were higher year over year. Growth in North America was offset by lower sales across the international markets.
From a regional perspective, North America's net sales were $142.7 million, down 0.9% from the year-ago fiscal quarter's tally. Other international sales, comprising Europe and Australia, were $34.7 million, down 10.8% from the year-ago quarter's level. We had anticipated North America's net sales to be $140.1 million and the other International sales to be $31.6 million.
Excluding the impacts of foreign currency translations, North America's net sales fell 0.9%, while other International net sales slipped 10.6% from the fiscal 2023 readings. Comparable sales for North America inched up 0.3%, while the metric for other international tumbled 13%.
Regarding sales by category, men's was the largest segment to report positive comparable sales, followed by women's. However, hardgoods was the negative comping category, followed by accessories and footwear.
Margins & Costs
Gross profit jumped 5.1% year over year to $51.9 million from $49.4 million reported in the year-ago quarter. The gross margin expanded 230 basis points (bps) to 29.3%. The improvement in the gross margin stemmed from several factors. These factors included an increase of 70 bps in product margin, 20 bps of leveraged distribution center costs and 70 bps of lower shipping costs. Further, a 20-bps fall in store occupancy ...