Zumiez Lowers Q4 Guidance, Shares Drop 6%

Zumiez Inc. experiences a significant dip in its stock as the retailer lowers its fourth-quarter guidance for net sales and earnings per share. The news has prompted a 6% decrease in share value during pre-market trading.

Date: 13-01-2025

AI Rating: 4

Earnings Per Share (EPS)
Zumiez has decreased its earnings per share (EPS) guidance for the fourth quarter to a range of $0.72 to $0.77, down from the previous range of $0.83 to $0.93. This reduction suggests a negative outlook on profitability and could heavily impact investor confidence.

Net Sales
The company has also lowered its net sales expectations for the fourth quarter to a range between $275 to $277 million, down from an earlier forecast of $284 to $288 million. This revision indicates declining sales figures, raising concerns about the company’s revenue performance, especially since the fourth quarter had one more week than the previous year.

The lower guidance is particularly troubling as it suggests that the previous year's performance will not be matched, with a projected negative impact on year-over-year growth rate in net sales due to the extra week.

Despite these challenges, there are some positive metrics; North America’s comparable sales have increased by 6.9%, and international comparable sales have seen a slight lift of 1.1%. However, this may not be enough to offset the negative revisions in overall sales and EPS estimates.

Stocks: ZUMZ