Zumiez reports Q1 loss, sales drop by 35.3 percent

First quarter net sales at Zumiez Inc. decreased 35.3 percent to 137.8 million dollars, while net loss in the quarter was 21.1 million dollars or loss of 84 cents per diluted share, compared to net income of 0.8 million dollars or 3 cents per diluted share, in the first quarter of the prior fiscal year.

“We came into fiscal 2020 in a strong financial position and the new year was off to a good start with first quarter sales and earnings tracking ahead of expectations through early-March,” commented Rick Brooks, Chief Executive Officer of Zumiez Inc. in a statement, adding, “Following the outbreak of Covid-19, we closed all of our stores. We have made investment throughout the closures and we believe we are already seeing a return on our investment in our ability to connect with our communities during closure and open stores quickly and safely as government guidelines allow.”

The company added that its total net sales in May 2020 decreased 8.6 percent compared to an increase of 2.6 percent for the four-week period ended June 1, 2019 primarily based on closures continuing into May with some areas not expected to open until June, offset by better than expected results in stores open and our e-commerce demand. Comparable store sales for locations opened in May as well as our e-commerce traffic increased 79.6 percent and by channel, open store comparable sales were 38.5 percent and our e-commerce sales were 181.6 percent in May.