Zumiez Inc. reported total net sales for the first quarter (13 weeks) ended May 3, 2008 increased by 14.4% to $78.7 million from $68.8 million reported in the first quarter ended May 5, 2007. The company posted net income for the quarter of $1.4 million, or $0.05 per diluted share, versus $1.6 million, or $0.06 per diluted share in the first quarter of the prior fiscal year.

Comparable store sales decreased 0.8% for the first quarter of fiscal 2008 compared to an 11.3% increase in the first quarter of fiscal 2007.

“While the retail environment remains challenging, we continue to concentrate our efforts in the areas we can best impact, including driving sales dollars per transaction, controlling expenses, carefully managing inventories and ensuring that our team remains energized and focused,” said Rick Brooks, President and Chief Executive Officer. “We believe Zumiez competitive advantage has always been its unique positioning in the mall, its broad merchandise selection and ability to attract the best talent in the industry.”

2008 Outlook

The company reiterated its diluted earnings per share guidance of approximately $0.90 to $0.93 for fiscal 2008. This guidance is based on anticipated square footage growth of approximately 20% and on flat to low-single digit increases in comparable store sales.

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

Three Months Ended

May 3, 2008

May 5, 2007

Net sales

$

78,702

$

68,791

Cost of goods sold 54,142 47,070
Gross profit 24,560 21,721
Selling, general and administrative expenses 22,934 19,538
Operating profit 1,626 2,183
Interest income, net 589 426
Other income – (1)
Earnings before income taxes 2,215 2,608
Provision for income taxes 853 991
Net income

$

1,362

$

1,617

Basic net income per share

$

0.05

$

0.06

Diluted net income per share

$

0.05

$

0.06

Weighted average shares used in computation of earnings per share:
Basic 29,012,733 27,975,278
Diluted 29,352,350 29,008,312