ZUMZ - Zumiez shares zapped to downside as inflation takes a heavy toll

Zumiez (NASDAQ:ZUMZ) shares sank sharply on Friday after reporting a disappointing first quarter and forecast. The Washington-based footwear retailer reported a two cent loss on EPS and a 20.9% decline in revenue to $220.69M. Analysts had anticipated a positive $0.07 and $218.03M for the first quarter headline figures, respectively. The cost of goods sold increased 4.2% from the prior year, with management noting that inflation, supply chain problems, and labor costs took their toll on the bottom line. “On the expense side we experienced some headwinds in the first quarter of this year around labor, shipping and logistics costs as well as a shift in timing of certain marketing and training investments that resulted in us missing our EPS guidance,” CEO Rick Brooks explained. “As we look to the balance of the year, we are cognizant that the current macroeconomic environment is likely to deteriorate further and near-term year-over-year comparisons

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Zumiez shares zapped to downside as inflation takes a heavy toll