Fashion retailer Zumiez reported a net loss of $8.5 million for the second quarter ended July 29, compared to net income of $3.1 million in the prior comparative period.
Net sales dipped 11.6 per cent to $194.4 million from $220 million in last year’s second quarter. For the six months ended July 29, sales decreased 14.4 per cent to $377.3 million.
Rick Brooks, CEO of Zumiez, said second-quarter sales trends improved month-to-month, and year-over-year top-line performance was “meaningfully better” than the first quarter.
“With continued headwinds facing consumer discretionary spending combined with a heightened promotional marketplace, we are pleased with the progress we’ve made positioning our business for the second half of 2023.”
Zumiez expects net sales in the third quarter to be in the range of $211 to $216 million, and consolidated operating margins between negative 1.5 per cent and negative 2.5 per cent.
The company plans to open 19 new stores in FY23, including up to five locations in North America, 10 in Europe, and four in Australia.
Operating under the names Zumiez, Blue Tomato and Fast Times, Zumiez Inc had 761 stores, including 609 in the US, 49 in Canada, 81 in Europe and 22 in Australia as of August 26.
