Zumiez Inc. on Thursday reported total net sales for the third quarter ended November 3 (13 weeks) increased 1.2 percent to $248.8 million from $245.8 million in the quarter ended October 28, 2017 (13 weeks).
Comparable sales for the 13 weeks ended November 3 increased 4.8 percent compared to a comparable sales increase of 7.9 percent for the 13 weeks ended October 28, 2017. Net income for the third quarter of fiscal 2018 was $13.8 million, or $0.55 per diluted share, compared to net income of $11.9 million, or $0.48 per diluted share in the third quarter of the prior fiscal year.
Total net sales for the nine months (39 weeks) ended November 3 increased 8.9 percent to $674.1 million from $619.2 million reported for the nine months (39 weeks) ended October 28, 2017. Comparable sales increased 6.3 percent for the thirty-nine weeks ended November 3 compared to a comparable sales increase of 5.1 percent for the thirty-nine weeks ended October 28, 2017. Net income for the first nine months of fiscal 2018 was $15.6 million, or $0.62 per diluted share, compared to net income for the first nine months of the prior fiscal year of $6.9 million, or $0.28 per diluted share.
At November 3, the company had cash and current marketable securities of $127.9 million compared to cash and current marketable securities of $85.8 million at October 28, 2017. The increase in cash and current marketable securities was primarily driven by cash generated through operations, partially offset by capital expenditures.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are very pleased with our third quarter performance and strong back-to-school season. The third quarter represented our ninth quarter of positive comparable sales and consisted of meaningful full priced selling throughout the period. With 140 basis points of improvement between product margins and inventory shrink, we were able to offset the loss of a high volume week due to the calendar shift and deliver earnings per share ahead of our expectations. The fourth quarter has gotten off to a positive start driven by robust demand over the Black Friday weekend and Cyber Monday. We are confident that our differentiated product offering, seamless multi-channel shopping experience, and superior customer service has Zumiez well positioned for a strong finish to the year and sustained success over the long-term.”
November 2018 Sales
Total net sales for the four-week period ended December 1, 2018 increased 9.4 percent to $84.4 million, compared to $77.1 million for the four-week period ended November 25, 2017. The company’s comparable sales increased 2.3 percent for the four-week period ended December 1, 2018 compared to a comparable sales increase of 7.8 percent for the four-week period ended November 25, 2017.
Fiscal 2018 Fourth Quarter Outlook
The company is introducing guidance for the three months ending February 2, 2019. Net sales are projected to be in the range of $295 to $301 million resulting in net income per diluted share of approximately $1.02 to $1.08. This guidance is based upon anticipated comparable sales growth between 0 percent and 2 percent for the fourth quarter of fiscal 2018. The company has opened 12 new stores this year through December 1, 2018 including 5 stores in North America and 7 stores in Europe. We plan to open one more store in 2018.