Zumiez Inc. (NASDAQ:ZUMZ) gained ground in early Friday stock markets, despite weaker-than-expected results for its first quarter on Thursday.
The Lynnwood, Washington-based supplier of apparel, footwear and accessories reported total net sales for the first quarter ended May 2, 2020 (13 weeks) decreased 35.3% to $137.8 million from $212.9 million in the first quarter ended May 4, 2019 (13 weeks).
Net loss in the first quarter of fiscal 2020 was $21.1 million, or $(0.84) per diluted share, compared to net income of $0.8 million, or $0.03 per diluted share, in the first quarter of the prior fiscal year. Included in this amount is $1.5 million or $0.5 cents associated with the impairment of ZUMZ right of use assets and fixed assets.
As of May 2, 2020 cash and current marketable securities increased $49.2 million or 29.3% to $217.2 million, compared to cash and current marketable securities of $168.0 million at May 4, 2019.
The increase in cash and current marketable securities was driven by cash generated through operations throughout 2019 partially offset by capital expenditures and $13.4 million of share repurchases through the company's stock buyback program prior to its stores closing due to COVID-19. ZUMZ ended the quarter with no debt.
To quote CEO Rick Brooks, "We came into fiscal 2020 in a strong financial position and the new year was off to a good start with first quarter sales and earnings tracking ahead of expectations through early-March,
"Following the outbreak of COVID-19 we closed all of our stores in accordance with state and local guidelines to protect the health and safety of our customers, employees and the communities in which we operate."
ZUMZ shares gained 75 cents, or 2.6%, to $29.95.
Related Stories
