Zumiez Adapts to Supply Chain Challenges
Senior executives for Zumiez say the retailer’s buying staff will do whatever is needed to meet market demand from chasing “hot” products to pushing out orders for slower movers.
“As it relates to Back-To-School in a period like this, we make a bet,” CFO Chris Work told analysts. “And the (buying) teams are pretty good at what they’re doing and they have put a plan together for B-T-S. We’ve through both regionally and holistically to serve these communities as they go Back-To-School. And if we need to chase, we’ll chase. And if we have to push out, we can push out.”
Zumiez Q1 sales of $279 million and EPS of $1.03, far exceeded internal expectations and buying trends showed that the banner’s customers were “increasing comfortable returning to in-person shopping.” North American sales rose 113 percent and 32 percent, respectively from the year-ago period and Q2/19. All product category sales were higher, led by men’s with footwear’s increase trailing accessories, hard goods and women’s. For the four weeks ended May 29, Zumiez generated a comparable sales increase of 32.9 percent. The retailer’s current FY21 outlook calls for net sales growth in the “low to mid-teens” from the FY19 level.