Retailer Zumiez Stock Falls After Q2 Performance - Revenue Dip, Weak Outlook and More

Zumiez Inc. ZUMZ shares are trading lower in Thursday's after-hours session after the company reported second-quarter earnings and issued guidance.

What To Know: Zumiez reported quarterly losses of 44 cents per share, which beat the analyst consensus estimate of losses of 67 cents, a 375% decrease over earnings of 16 cents per share from the same period last year. 

The company reported quarterly sales of $194.44 million, which beat the analyst consensus estimate of $190.16 million, an 11.62% decrease over sales of $219.99 million in the same period last year.

As of July 29, Zumiez had cash and current marketable securities of $140.0 million, compared to $166.2 million last year, mainly due to capital expenditures.

Outlook: The company issued third-quarter revenue guidance between $211 million and $216 million, weaker than the $217.83 million estimate.

Earnings per share are estimated to be between losses of 25 cents and losses of 15 cents versus the estimate of 21 cents.

Consolidated operating margins are expected to be between negative 1.5% and negative 2.5%

Rick Brooks, CEO of Zumiez, stated, "While our North American business remains under pressure, second quarter sales trends improved month-to-month and our year-over-year top-line performance was meaningfully better compared with 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."

"The back-to-school season, which is historically a good indicator for holiday demand, is continuing to show improvement from the last few quarters. Despite the challenges year-to-date, we are confident that the global consumer centric operating model we have built and refined over the past four decades will continue to deliver great long-term value for our shareholders."

Related Link: Why Lam Research Stock Sank Today

ZUMZ Price Action: Shares of ZUMZ were down 5.95% at $17.55 in the after-hours session at the time of publication, according to Benzinga Pro.