Zumiez Inc. Reports 1.6% Increase in Net Sales for Fiscal Year Ending February 1, 2025

Zumiez Inc. reported a modest increase in financial performance for the fiscal year ending February 1, 2025, with net sales reaching $889.2 million, a 1.6% rise from $875.5 million in the previous year. The company achieved a comparable sales growth of 4.0%, driven primarily by an increase in dollars per transaction, despite a decrease in transaction volume. Gross profit improved to $303.0 million, representing a 7.9% increase from the prior year, with gross margin rising to 34.1%, up 200 basis points. The company recorded an operating profit of $1.95 million, a significant turnaround from a loss of $64.8 million in fiscal 2023.

In terms of strategic developments, Zumiez continued to enhance its product offerings, launching over 120 new brands during the fiscal year. The company also focused on integrating its digital and physical sales channels, which has improved customer service and operational efficiency. Zumiez operated 730 stores globally as of February 1, 2025, with 570 in the U.S., 46 in Canada, 87 in Europe, and 27 in Australia. The company plans to open approximately nine new stores in fiscal 2025, reflecting its commitment to geographic expansion.

Operationally, Zumiez employed approximately 2,400 full-time and 6,300 part-time employees, with part-time numbers fluctuating seasonally. The company reported a decrease in selling, general, and administrative expenses, which fell by $44.6 million from the previous year, largely due to a significant goodwill impairment charge in fiscal 2023. The effective tax rate for fiscal 2024 was notably high at 142.0%, primarily due to foreign losses, resulting in a net loss of $1.7 million, or $0.09 per diluted share, an improvement from a loss of $62.6 million, or $3.25 per diluted share, in the prior year.

Looking ahead, Zumiez remains cautiously optimistic about fiscal 2025, despite uncertainties in the macroeconomic environment. The company aims to capitalize on positive sales momentum and enhance customer engagement through strategic investments. With $147.6 million in cash and marketable securities and no debt, Zumiez is well-positioned to navigate potential challenges while pursuing growth opportunities. The company’s focus will be on delivering differentiated products and improving operational efficiencies to drive long-term profitability.