Zumiez(ZUMZ) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter comparable sales increased by 7.5%, while net sales rose by 2.9% to $222.5 million compared to $216.3 million in the same quarter last year[2][3] - Gross margin improved by 140 basis points to 35.2% in the third quarter, up from 33.8% in the prior year[2][3] - Net income for the third quarter was $1.2 million, or $0.06 per share, compared to a net loss of $2.2 million, or $0.12 per share, in the same quarter last year[3][4] - For the first nine months of fiscal 2024, net sales increased by 2.8% to $610.0 million, with a comparable sales growth of 3.2%[4][15] - The company reported an operating loss of $18.2 million for the first nine months of fiscal 2024, an improvement from a loss of $32.0 million in the same period last year[15] - Net loss for the nine months ended November 2, 2024, was $16,467 thousand, an improvement from a loss of $29,122 thousand in the same period last year[19] Sales Expectations - The company expects fourth quarter net sales to be in the range of $284 to $288 million, with projected earnings per diluted share of approximately $0.83 to $0.93[8] - Total fourth quarter-to-date sales increased by 10.0% compared to the same period last year, with comparable sales up by 2.9%[7] - The strategic initiatives have led to a noticeable increase in sales trends, particularly in the North American market, with strong gains in apparel and footwear categories[6] Store Operations - Zumiez opened 6 new stores in fiscal 2024, with one additional store planned for the fourth quarter, while expecting to close approximately 33 stores by the end of the year[9] Cash Flow and Liquidity - Cash and current marketable securities decreased to $99.3 million as of November 2, 2024, down from $135.8 million a year earlier, primarily due to share repurchases and capital expenditures[5] - Net cash used in operating activities was $33,990 thousand, compared to $22,922 thousand in the previous year, indicating a decline in cash flow[19] - Cash, cash equivalents, and restricted cash at the end of the period totaled $57,550 thousand, down from $94,284 thousand at the beginning of the period[19] Balance Sheet - Total liabilities increased to $328,886 thousand from $311,016 thousand, representing a 5.7% increase year-over-year[18] - Total shareholders' equity decreased to $317,088 thousand from $353,210 thousand, reflecting a decline of approximately 10.2%[18] Capital Expenditures - Additions to fixed assets were $10,012 thousand, down from $16,210 thousand, indicating reduced capital expenditure[19] - The company repurchased common stock amounting to $25,206 thousand during the period, reflecting a strategic move to return value to shareholders[19] Other Expenses - Noncash lease expense was $48,424 thousand, slightly down from $51,607 thousand, showing a reduction in lease-related costs[19] - The company experienced a decrease in inventories, with a cash outflow of $59,401 thousand compared to $43,186 thousand in the previous year[19] - Proceeds from the issuance and exercise of stock-based awards amounted to $736 thousand, down from $890 thousand, indicating a decline in stock-based compensation activity[19]