Zumiez posted strong results in the first quarter, especially in North America, despite the uncertainty around tariffs and their impact on consumer spending and sentiment.
The retailer’s comparable sales rose 5.5% during the quarter ended May 3, with solid full-price selling.
In North America, first quarter comparable sales increased 7.4%, while international sales in Europe and Australia combined declined 2.3%.
Women’s, men’s, footwear, and accessories performed well during the quarter, while hardgoods sales declined.
In May, the start of the second quarter, total comparable sales rose 1.4%. North America continued to be the standout performer, with comparable sales increasing 5.1% while international comps declined 14.8.%.
The company operates 731 stores in North America, Europe, and Australia.
More Q1 Financial Results
Net sales: up 3.9% to $184.3 million.
Net loss: narrowed to $14.3 million compared to a net loss of $16.8 million in the same period last year.
Profit Problems in Europe
Blue Tomato, Zumiez’s European brick-and-mortar and e-commerce business, which has grown to 87 stores in nine countries, has yet to turn a profit.
The business had momentum at the end of 2024, and while still losing money, had narrowed its losses. Full-year revenue totaled EUR 135 million.
2025 has started slowly in Europe, however, with comparable store sales declines but Zumiez believes sales will improve during the remainder of the year.
Overall, the company is focusing on slowing door count growth to drive profitability and cash flow, CFO Chris Work said.
2025 Store Opening Plans
The company plans to open nine new stores in 2025, including six in North America, two in Europe, and one in Australia.
Tariffs
At the end of 2024, about 50% of Zumiez’s goods were sourced in China. By the end of 2025, that number should fall to about 30% as the company works to diversify its supply chain.
In the long term, the company’s goal is to have no individual country represent more than 20% of its sourced goods.
Where prices have increased on goods it sells, Zumiez is also evaluating how it can offer bundles and package deals to offset the increased costs, executives said.
Planning for Full-Year Top-Line Growth
Although Zumiez closed 33 stores companywide in 2024 and is planning to shutter another 20 in 2025, the company still expects top-line sales to grow for all of 2025 even with pressure from tariffs.
“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,” CEO Rick Brooks said in a statement.
