The teen retailer saw red ink in the first quarter, reporting a net loss of $397,000 against a profit of $26,385,000, as sales dropped 21% to $220,686,000 from $279,069,000. The shortfall was blamed largely on the lack of government stimulus payments this year, and ZUMZ noted that revenues are up 4% from pre-pandemic, Q1 ’19 levels. Rising inflation was also called out as a headwind, forcing the retailer to compete for consumers’ shrinking discretionary dollar.

North American sales declined 25% to $186.3 million, with ZUMZ noting that it saw customers starting to trade down a bit in Q1, giving private label ... Log in to view full article.