Citing an unexpected climb of sales and earnings, Zumiez fourth quarter profits exceeded market expectations, and were improvements following a difficult prior-year period. Accordingly, total net sales for the fourth quarter ended January 30 increased 5.6% to $132.4 million from $125.5 million reported in the fourth quarter ended January 31, 2009. The company posted net income for the quarter of $8.8 million, or 29 cents per diluted share, compared to net income of $6.3 million or 21 cents per diluted share, in the prior-year quarter. In similar fashion to the bigger picture, comparable store sales decreased 1.7% for the fourth quarter of fiscal 2009 compared to a 13.4% decrease in the fourth quarter of fiscal 2008.
Rick Brooks, CEO of Zumiez suggested that the lackluster performance of many of the companys brands is relative to a cycle which will run its natural course. There are cycles we go through where different departments lead the trend cycle. And we have been, in the last few years, in a footwear driven trend cycle said Brooks.
However, a seemingly inevitable fourth quarter increase when compared to 2008 seemed moot given the companys poor end of year results. Total net sales for fiscal 2009 decreased 0.3% to $407.6 million from $408.7 million reported in fiscal 2008. The company posted net income of $9.1 million or $0.30 per diluted share.
While we are not pleased with our annual performance, we are encouraged that the steps we took to reverse the negative trends from early in the year led to improved results during the back half of 2009, commented Brooks.
The story for Zumiez has mirrored that of the current recession, resembling a slippery slope since the companys peak in 2006 with operating margins of 10.9%, a record for the company.
