Colleen Michaels / iStock Editorial via Getty Images
Zumiez (NASDAQ:ZUMZ) shares plummeted on Friday after reporting a disappointing first quarter and forecast.
The Washington-based footwear retailer reported a 2% EPS loss and sales fell 20.9% to $220.69 million. Analysts have predict $0.07 positive and $218.03 Million for the first quarter headline figures, respectively. COGS increased 4.2% year-over-year, with management noting that inflation, supply chain issues and labor costs had hit their bottom line.
“On the cost front, we experienced some headwinds in the first quarter of this year around labor, shipping and logistics costs, as well as the timing variation of our marketing and sales investments. Certain training left us with a lack of guidance on EPS,” explained CEO Rick Brooks. “As we look at the year-to-date balance, we recognize that the current macroeconomic environment is likely to deteriorate further and that short-term year-to-year comparisons remain challenging.”
Management added that sales in May did not look good. For the month, net sales fell 20.9% y/y due to the stimulus measures being put in place. For the entire second quarter, net sales are expected to be in the $232 to $239 million range with EPS between $0.45 and $0.55. EPS expectations were a lot lower than the $0.61 expected by analysts while the revenue range was also slightly below Wall Street’s $239.9 forecast.
Shares fell nearly 8% in pre-opening trading on Friday, rebounding slightly from an even larger drop in the hour after Thursday.
Read earnings call records.
