The 738-door Zumiez chain, citing the absence of a federal consumer stimulus this year and current economic uncertainties due to inflation and the conflict in Ukraine, is forecasting a meaningful drop in Q1 revenues to a range of $215-221 million. While total annual sales are forecast to decline in the low single digits, trends are predicted to improve in the back half from the back-to-school and holiday seasons after a tough first half. Zumiez, which will continue with its inventory turn and localized assortment strategies this year, introduced 100 new brands to its customers in 2021.

Zumiez’ net income declined by 10.7 percent to $38.2 million in Q4, Operating profit slipped by 3.9 percent to $51.7 million as higher costs dragged gross margins down to 38.6 percent despite a 40-basis point increase from better pricing. Total Q4 revenues, paced by men’s, footwear, and accessories, increased by 4.6 percent to $346.7 million. North American sales of $287 million were up by just 0.6 percent year-over-year and by 2.2 percent from the comparable 2019 period. Sales outside the U.S., where Zumiez will open 14 new locations this year, rose 28.8 percent to $59.6 million in the final period. In FY21, net income ticked 57 percent higher to $119.3 million. Revenues increased by 20 percent to $1.18 billion, with North America contributing $1.03 billion of the total on a 19.1 percent improvement.