Zumiez Inc. once again saw positive comparable store results come out of each of its merchandise divisions in the first quarter, with Mens again leading the way. The retailer saw overall quarterly comp store sales jump in the double-digits on top of double-digit gains last year that paired with new store openings to drive a mid-40s sales gain, but net income gains were even more impressive, outpacing sales.
Net sales jumped 44.0% in the first quarter to $68.8 million from $47.8 million in the same period last year, while comparable store sales increased 11.3% for the quarter on top of a 19.7% increase last year.
Gross margin decreased 20 basis points to 31.7% of net sales from 31.9% during the year-ago quarter, but the diminished margins were offset by a decrease in SG&A expenses of 30 basis points to 28.5% of net sales. The improvement in expenses helped the company post net income growth that outpaced sales, up 45.5% for the quarter to $1.6 million or 6 cents per diluted share from $1.1 million or 4 cents per diluted share in the first quarter of the prior fiscal year.
During Q1, the company opened 19 stores, bringing total door count to 235 and remaining on track to open 50 this year. The company continues to expect mid-single-digit comps growth, with net square footage expansion of 20% and diluted EPS growth in excess of 30%.