Zumiez Inc. said total net sales for the second quarter (13 weeks) ended Aug. 2, 2008 increased by 12.5% to $92.3 million from $82.0 million reported in the second quarter a year ago.
Total net sales for the first six months (26 week period) of fiscal 2008 increased by 13.4% to $171.0 million from $150.8 million reported in the first six months of the prior year. The company posted net income of $4.1 million, or 14 cents per diluted share in the first six months of 2008, versus $4.7 million, or 16 cents per diluted share in the prior year.
Net cash provided by operating activities in the first half of fiscal 2008 was $15.7 million compared to net cash used in operating activities of $6.7 million in the first half of fiscal 2007, driven largely by favorable changes in working capital.
“We continue to make positive strides in our ongoing efforts to give our customers a unique specialty retail experience, while controlling costs and effectively managing inventories during this very difficult operating environment,” said Rick Brooks, president and CEO of Zumiez Inc. “Due to this focus, we exceeded our earnings projection for the first six months of this year. We have opened 39 stores this year and continue to make the investments necessary to build the Zumiez chain to our goal of 800 stores.”
2008 Outlook
“That said, the macro environment remains challenging and retailers are becoming increasingly promotional,” Brooks continued. “Therefore, we believe it is prudent to adopt a more conservative outlook for the back half of the year.”
ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
August 2, | August 4, | |||||||||||
2008 | % of Sales | 2007 | % of Sales | |||||||||
Net sales | $ | 92,258 | 100.0 | % | $ | 81,974 | 100.0 | % | ||||
Cost of goods sold | 62,155 | 67.4 | % | 53,783 | 65.6 | % | ||||||
Gross profit | 30,103 | 32.6 | % | 28,191 | 34.4 | % | ||||||
Selling, general and administrative expenses | 26,191 | 28.4 | % | 23,489 | 28.7 | % | ||||||
Operating profit | 3,912 | 4.2 | % | 4,702 | 5.7 | % | ||||||
Interest income, net | 495 | 0.6 | % | 327 | 0.4 | % | ||||||
Earnings before income taxes | 4,407 | 4.8 | % | 5,029 | 6.1 | % | ||||||
Provision for income taxes | 1,680 | 1.8 | % | 1,911 | 2.3 | % | ||||||
Net income | $ | 2,727 | 3.0 | % | $ | 3,118 | 3.8 | % | ||||
Basic net income per share | $ | 0.09 | $ | 0.11 | ||||||||
Diluted net income per share | $ | 0.09 | $ | 0.11 |