Zumiez experienced a 0.3% increase in comps versus a decrease of 12.3% from the same period last year, while recording $77.6 million in total net sales, a 7.7% increase from last year.

 

The retailer began the year by focusing on improving merchandising and training within its stores and decreasing store inventories. 

 

Trevor Lang, CFO of Zumiez, Inc. emphasized the reduction of inventory for the improved financial standing of the retailer. “Most of you will recall our inventory was down about 16% on a square-foot basis at the end of the third quarter, and our fourth-quarter-to-date comps have been down about 2.4% and performed better than our ending inventories…So what this means is that we're doing a better job of editing and limiting our assortment to make sure we have what's relevant and what's selling, and this is also improving our cash cycle,” Lang said. This also aided in reducing store costs to around 20%.
To-date, Zumiez inventory is down to about $220,000 per store on a net basis. 

 

Solid inventory management, as well as strong expense control has enabled Zumiez to increase its cash by over 25% this year.

Looking ahead, ZUMZ will  focus on regional marketing, merchandise business intelligence and assortment planning solutions.  This will determine where new stores will be located, as well as improving evaluation processes.

 

Of the company’s 377 stores, 36 were opened in 2009.  Zumiez’ outlook for the future is to distribute to 600 to 700 stores nationwide, as well as increase their popularity within a wider market, including e-commerce. Currently, California comprises about 20% of the company’s sales, and nearly 40% of the sales in the West.  Furthermore, only 2% of the company’s sales are derived from online retail.