Zumiez, Inc. filed its amended S-1 last week as the Seattle-based action sports retailer prepares to enter the public market this spring. Based on the companys most recent results, management has read all the right books about dressing yourself up for the big dance as ZUMZ posted a very strong fourth quarter and a record year.
Net sales for the quarter ended January 29 jumped 33.1% to $53.0 million, compared to $39.8 million in the year-ago period. Comparable store sales increased 12.5% for the quarter on top of a 9.0% gain in Q4 last year. The comp store sales increase was easily the strongest performance of any of the retailers tracked by Sports Executive Weekly each quarter.
Gross margins improved 240 basis points for the period to 35.9% of sales versus 33.5% in the year-ago quarter. Net income surged 47.1% to $4.2 million from $2.9 million in Q4 2003. Return on Sales was 4.8% in fiscal 2004 versus 3.8% in 2003. Operating profit was 7.8% of sales in fiscal 2004 compared with 6.3% in fiscal 2003.
For the year, the 9.6% comp sales gain was primarily attributed to “higher net sales of footwear, snowboard hardgoods, juniors' apparel and accessories” at comparable stores. The improvement in gross margin was said to be a function of leveraging the higher sales volume as well as better pricing received from vendors as purchasing power increased.
Zumiez added 27 new stores in fiscal 2004 for a total store count of 140 at year-end. The average store generated $1.20 million, or $457/sf, in sales in fiscal 2004, compared to $1.13 million, or $448/sf, in fiscal 2003. The retailer operated 371,864 square feet of retail space at year-end, compared to 288,784 square feet at the prior year-end.
>>> This one looks like it has all the makings of a good business on the surface, but they are entering a new chapter where the established players in the mall will fight for every slice of market share. Is there room for one more???
