LYNNWOOD, Wash. - Zumiez Inc . (NASDAQ:ZUMZ) saw its stock surge 13% after the specialty retailer reported better-than-expected third-quarter earnings and provided upbeat revenue guidance for the fourth quarter.
The company posted adjusted earnings per share of $0.06 for the third quarter ended November 2, 2024, surpassing analyst estimates of $0.03. This marked a significant improvement from a loss of -$0.12 per share in the same quarter last year. Revenue rose 2.9% YoY to $222.5 million, slightly below the consensus estimate of $222.85 million.
Comparable sales for the quarter increased 7.5%, demonstrating strong consumer demand for Zumiez's apparel and footwear offerings. The company's gross margin expanded 140 basis points to 35.2%, contributing to the bottom-line beat.
"The strategic initiatives we have been executing this year have contributed to a noticeable increase in sales trends," said Rick Brooks, Chief Executive Officer of Zumiez Inc. "Fueled by growing strength in our North American business, consolidated comparable sales sequentially accelerated 390 basis points to high-single digits in the third quarter."
Looking ahead, Zumiez provided fourth-quarter revenue guidance of $284-288 million, above the analyst consensus of $283.5 million. The company expects earnings per share between $0.83 and $0.93 for the quarter, below the $1.01 consensus estimate.
Zumiez reported that total sales for the first 31 days of the fourth quarter increased 10% compared to the same period last year, with comparable sales up 2.9%.
The retailer plans to open one additional store in the fourth quarter, bringing the total new store count to 7 for fiscal 2024. Zumiez expects to close approximately 33 stores by the end of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.