ZUMZ - Zumiez stock zooms lower on weak first quarter forecasts

2023-03-09 17:09:34 ET

Zumiez ( NASDAQ: ZUMZ ) stock slumped after the bell on Thursday after forecasting far slower than expected sales into 2023.

For the fiscal fourth quarter, the Washington-based footwear and apparel manufacturer notched $0.59 in earnings per share, rising above estimates by $0.10, and $280.11M in revenue that came in $11.51M above expectations.

“We concluded a challenging fiscal 2022 with fourth quarter results that were ahead of our guidance, but below year ago levels,” CEO Rick Brooks commented. “While the operating environment has been difficult and our recent financial performance disappointing, our commitment to serving consumers with world class service and highly differentiated, sought-after merchandise, is as strong as ever and has the business positioned to recover quickly when the macroeconomic conditions improve.”

However, the company’s first quarter forecasts fell well short of expectations. Management projected net sales in the range of $178M to $184M against a consensus expectation of $222M. Earnings per share are expected to range from an $0.85 to $0.95 loss, surprising analysts that had expected $0.03 in earnings per share for Q1.

For the quarter through March 4, net sales decreased 15.5% year over year and comparable sales crashed 16.6%.

Shares of Zumiez ( ZUMZ ) crashed 11.63% after the bell on Thursday.

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