US Stocks Move: Zumiez falls 10.6% pre-market as Q1 loss exceeds expectations, Q2 guidance shifts from profit to loss

Glonghui June 5th｜Zumiez fell 10.65% pre-market to $20.98. The drop was mainly due to a newly released quarterly loss that was slightly worse than market expectations, and its guidance for the next quarter was also far below Wall Street's forecasts, leading to a clear hit to market confidence. The operating loss narrowed from $19.9 million a year earlier to $15.2 million, with the operating margin improving by 290 basis points year-on-year. However, the company has posted consecutive quarterly losses, with an average operating margin of -2.1% over the past two years. Zumiez's earnings per share have dropped at an annualized rate of about 39.7% over the past three years. The company expects to post a loss again in the second quarter, while the market had previously expected a profit. The CEO said that May saw some degree of weakness in the North American market.