Sales at Zumiez, the retail apparel company, have declined during the holiday season, leading to a revised forecast for the fourth quarter. For the nine-week period ending on December 30, sales decreased by 4.4% compared to the same period last year. Additionally, comparable sales dropped by 5.9%.
While the men's category saw positive comparable sales during this period, all other categories, including women's apparel, hardgoods, accessories, and footwear, experienced a decline in comparable sales from the previous year.
Zumiez initially projected sales and earnings per-share in the fourth quarter to be between $275 million and $281 million, with earnings per-share ranging from 24 cents to 34 cents. However, due to the decrease in sales, these numbers will likely be at the lower end of the previous guidance. It is worth noting that this quarter includes an additional week compared to the same quarter last year.
According to Chief Executive Rick Brooks, sales growth slowed down after the Black Friday/Cyber Monday weekend leading up to Christmas. Despite a promising start to the holiday season, the company faced challenges with softer than normal traffic patterns and unfavorable weather conditions. Warm weather in some parts of the United States, as well as minimal snow in key winter sports regions in North America and Europe, contributed to these difficulties.
While Zumiez made adjustments to its merchandise to cater to high demand shopping days, these changes were insufficient to offset sustained periods of lower footfall.
The company's revised forecast is a reflection of the challenging market conditions Zumiez faced during the holiday season.
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