By Connor Hart
Shares of Zumiez fell after the company forecast a loss in the current quarter, dragged down by higher costs from tariffs.
The stock slipped 6.8%, to $11.98, in pre-market trading Friday. Through Thursday's close, shares have lost nearly one-third of their value in the past year.
The apparel and footwear company late Thursday said it expects a net loss between 24 cents and 9 cents a share in its fiscal second quarter, compared with analyst views for earnings of 5 cents a share. The company also guided for sales of $207 million to $214 million, the midpoint of which is just below the $211 million that Wall Street had modeled.
Zumiez noted its outlooks are based upon the current tariff environment and include actions it has taken to offset higher costs.
Chief Executive Rick Brooks said the company has further diversified its North America supply chain and expects a meaningful reduction in exposure to China by the end of the year.
"While the potential impact on consumer sentiment from ongoing trade negotiations is unknown, we are pleased with our current momentum in North America and confident in our ability to outperform the market over the remainder of the year," he said.
The outlook came as Zumiez narrowed its loss and logged higher sales in its fiscal first quarter.
The company notched a net loss of $14.3 million, or 79 cents a share, for its three months ended May 3, compared with a loss of $16.8 million, or 86 cents a share, in the same period a year earlier. Analysts polled by FactSet had expected a quarterly loss of 77 cents a share.
The company noted the recent quarter was hurt by $2.9 million, or about $0.13 a share, stemming from the settlement of a wage-and-hours lawsuit in California.
Sales increased 3.9% to $184.3 million, topping the $182.5 million that analysts had projected.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 06, 2025 09:08 ET (13:08 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.