Zumiez Inc. reported net income surged 136.8 percent to $4.5 million, or 14 cents per share, from $1.9 million, or 6 cents, a year ago. Revenues increased 22.7 percent to $129.9 million from $105.9 million in the quarter ended April 30, 2011 (13 weeks). Comparable store sales for the first quarter of fiscal 2012 increased 12.9 percent on top of a comparable store sales increase of 12.6 percent in the first quarter of fiscal 2011.
The earnings results for fiscal 2012 include costs of approximately $0.3 million, or 1 cent per share, associated with the relocation of the company's ecommerce fulfillment center from Everett, WA to Edwardsville, KS.
At April 28, 2012, the company had cash and current marketable securities of $171.2 million, an increase of 31.0 percent compared to cash and current marketable securities of $130.7 million at April 30, 2011.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are pleased to start the year off with such strong performance. While the first quarter represents only a small percentage of our annual sales and earnings, theses results are further validation that our strategies to profitably grow the business are working. Our teams are energized and focused on carrying our current momentum into summer and positioning the Company for a successful back half of the year.”
Fiscal 2012 Second Quarter Outlook
The company is introducing guidance for the three months ending July 28, 2012. Net sales are projected to be in the range of $128 to $130 million resulting in net income per diluted share of approximately 4 cents to 6 cents. This guidance is based on an anticipated comparable store sales increase in the mid single digit range for the second quarter of fiscal 2012 and includes costs of approximately $1.8 million, or 3 cents per diluted share, associated with the relocation the company's ecommerce fulfillment center to Edwardsville, Kansas and corporate offices to Lynnwood, Washington from Everett, Washington.
The company currently intends to open approximately 50 new stores in fiscal 2012, including up to 10 stores in Canada, with an opening cadence similar to fiscal 2011.
ZUMIEZ INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)Three Months Ended
——————————————April 28, % of April 30, % of
2012 Sales 2011 Sales
———- ——— ———- ———
Net sales $129,899 100.0% $105,851 100.0%
Cost of goods sold $87,798 67.6% $72,661 68.7%
———- ——— ———- ———
Gross profit 42,101 32.4% 33,190 31.3%Selling, general and
administrative expenses 34,839 26.8% 30,638 28.9%
———- ——— ———- ———
Operating profit 7,262 5.6% 2,552 2.4%Interest income, net 490 0.4% 513 0.4%
Other income, net 17 0.0% 55 0.1%
———- ——— ———- ———
Earnings before income
taxes 7,769 6.0% 3,120 2.9%Provision for income
taxes 3,242 2.5% 1,234 1.1%
———- ——— ———- ———Net income $4,527 3.5% $1,886 1.8%
========== ===== ====== =========Basic earnings per share $0.15 $0.06
========== ==========Diluted earnings per share $0.14 $0.06
========== ==========Weighted average shares used in
computation of earnings per
share:
Basic 30,779 30,343Diluted 31,401 31,084
