Zumiez Inc. said total net sales for the first quarter ended May 2, 2009 decreased 2.4% to $76.8 million from $78.7 million reported in the first quarter ended May 3, 2008. The company posted a net loss for the quarter of $1.7 million or 6 cents per diluted share, versus net income of $1.4 million or 5 cents per diluted share in the first quarter of the prior fiscal year. Comparable store sales for the first fiscal quarter of 2009 decreased 15.3% versus a decrease of 0.8% for the first quarter of 2008.
“While the ongoing recession continues to pressure sales we were able to deliver first quarter results that exceeded our projections driven primarily by stronger than expected product margins,” stated Rick Brooks, CEO of Zumiez Inc. “Our team continues to do an excellent job managing our expenditures and inventories while at the same time working closely with our vendors to ensure that our merchandise assortments reflect current trends and provide compelling value for our target consumer. This has allowed us to head into the summer selling season with inventory levels in line with our expectations. Given the relative tough comparisons we are up against through August we remain cautious about our near-term prospects, however we believe that our unique concept and strong balance sheet have us well positioned to further expand our market share as the consumer environment improves.”
2009 Outlook
The company is introducing guidance for the three months ending August 1, 2009 of a net loss of approximately 17 cents to 14 cents per diluted share. This guidance is based on an anticipated comparable store sales decline in the low-to-mid twenty percent range for the second quarter of fiscal 2009.
Zumiez said it intends to open approximately 36 new stores in fiscal 2009 with an opening cadence similar to fiscal 2008.
ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited) | |||||||||||||
| Three Months Ended | |||||||||||||
| May 2, | May 3, | ||||||||||||
| 2009 | % of Sales |
| 2008 | % of Sales | |||||||||
| Net sales | $ | 76,808 | 100.0 | % | $ | 78,702 | 100.0 | % | |||||
| Cost of goods sold | 54,908 | 71.5 | % | 54,142 | 68.8 | % | |||||||
| Gross profit | 21,900 | 28.5 | % | 24,560 | 31.2 | % | |||||||
| Selling, general and administrative expenses | 25,338 | 33.0 | % | 22,934 | 29.1 | % | |||||||
| Operating (loss) profit | (3,438 | ) | (4.5 | %) | 1,626 | 2.1 | % | ||||||
| Interest income, net | 357 | 0.5 | % | 589 | 0.7 | % | |||||||
| (Loss) earnings before income taxes | (3,081 | ) | (4.0 | %) | 2,215 | 2.8 | % | ||||||
| (Benefit) provision for income taxes | (1,423 | ) | (1.8 | %) | 853 | 1.1 | % | ||||||
| Net (loss) income | $ | (1,658 | ) | (2.2 | %) | $ | 1,362 | 1.7 | % | ||||
| Basic net (loss) income per share | $ | (0.06 | ) | $ | 0.05 | ||||||||
| Diluted net (loss) income per share | $ | (0.06 | ) | $ | 0.05 | ||||||||
| Weighted average shares used in computation of (loss) earnings per share: | |||||||||||||
| Basic | 29,314,611 | 29,012,733 | |||||||||||
| Diluted | 29,314,611 | 29,352,350 | |||||||||||
