Zumiez Inc. posted double-digit same-store sales increases for 2006, the fourth quarter of 2006, and each month in the fourth quarter. The bottom line grew as well, up over 60% for both Q4 and 2006.
Net sales for the fourth quarter ended February 3, 2007 increased by 49.0% to $112.4 million from $75.4 million reported in the fourth quarter of the prior fiscal year. Comparable store sales increased 12.0% for the fourth quarter of fiscal 2006 compared to a 20.7% increase in the fourth quarter of fiscal 2005. During 2006, private label accounted for “just slightly above 14%” of sales, said Brenda Morris, the retailers departing CFO, on a conference call with analysts. This ratio is up from 13% of sales in 2005. The companys online business is still below 1% of the overall, but this is an area the company will be looking to expand.
The company posted net income of $11.3 million for Q4, or 39 cents per diluted share, jumping 66.2% from $6.8 million or 23 cents per diluted share last year.
During the fourth quarter, the company opened three new stores to end the fiscal year with 235 doors open, including the Fast Forward stores that were acquired in June. Of the acquired Fast Forward stores, all currently have Zumiez in-store signage, however only three have thus far had their store fronts changed to Zumiez. The company expects to complete the conversions by the end of the 2007 fiscal year. The acquisition was said to be “relatively neutral” to earnings on the conference call, with accretive input expected to occur in 2007.
The company's long-term financial targets include comparable store sales growth in the mid-single-digit range; net square footage expansion of approximately 20%; and diluted EPS growth in excess of 30%. In line with its long-term growth goals, the company introduced guidance for fiscal 2007 of 94 cents to 96 cents in diluted earnings per share. In 2007, the company expects to open 50 new stores with 30% to 40% of those stores opening in the first and second quarters and the remainder opening in the third. The company looks to backfill in its existing markets, especially in Florida, the Northeast, Texas and Southern California.
| Zumiez, Inc. | |||
| Full Year Results | |||
| (in $ millions) | 2006 | 2005 | Change |
| Total Sales | $298.2 | $205.6 | +45.0% |
| GP % | 36.4% | 35.4% | +100 bps |
| Net Income | $20.9 | $12.9 | +62.3% |
| Diluted EPS | 73¢ | 47¢ | +55.3% |
| Comp Sales | +13.0% | +14.2% | |
| Inventory* | $42.2 | $30.6 | +38.0% |
| *at year-end | |||
