Zumiez Inc. reported total net sales for the fourth quarter increased 42.3% to $75.4 million from $53.0 million in the year-ago quarter. The company posted net income for the quarter of $6.8 million or 47 cents per diluted share versus net income of $4.2 million or 32 cents per diluted share in the fourth quarter of the prior fiscal year. Comparable store sales increased 20.7% for the fourth quarter of fiscal 2005 on top of a 12.5% last year.
On a full year basis, total net sales for fiscal 2005 increased by 33.9% to $205.6 million from $153.6 million reported in the prior year. The company posted net income of $12.9 million or $0.94 per diluted share in fiscal 2005 versus $7.3 million or $0.56 per diluted share in the prior fiscal year. Comparable store sales increased 14.2% in fiscal 2005 compared to 9.6% in fiscal 2004.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc., stated, “Our results for the fourth quarter and full year demonstrates the continued strength of our store model. I want to thank our store and home office teams for all their hard work in helping achieve these results.”
Mr. Brooks continued, “While we plan for low to mid single digit comp store sales, our 2005 actual comparable store sales increase of 14.2% shows that we have the ability to drive sales beyond our plan with our flexible merchandising strategy. We were pleased to open 35 new stores in 2005 and feel very good about our expansion plans for 2006 and beyond.”
For fiscal 2006, the company plans to open 42 new stores in a measured pace throughout the year.
Mr. Brooks concluded, “Zumiez has succeeded as a highly differentiated retail concept by bringing the feel of an independent action sports shop to the mall. Our strong culture, sales driven approach, unique training programs and passionate and committed people position us for continued long-term success. We look forward to expanding the reach of Zumiez to new markets in 2006.”
2006 Outlook
The company stated that it is introducing guidance for fiscal 2006 of $1.22, which includes the initial estimates of the impact of FAS123R, in diluted earnings per share, and that weighted average diluted shares for the year are expected to be approximately 14,650,000 shares at year end. The company also stated that it believes that its projected earnings growth rate of 30% continues to be achievable for fiscal 2006 and beyond.
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
----------------------- -----------------------
January 28, January 29, January 28, January 29,
2006 2005 2006 2005
---------------------------------------------- ----------- -----------
Net sales $75,401 $53,001 $205,589 $153,583
Cost of goods sold 46,658 33,987 132,811 103,152
----------- ----------- ----------- -----------
Gross margin 28,743 19,014 72,778 50,431
Selling, general and
administrative
expenses 18,200 12,174 52,730 38,422
----------- ----------- ----------- -----------
Operating profit 10,543 6,840 20,048 12,009
Interest income
(expense), net 379 (32) 648 (250)
Other income (expense) (3) 3 (1) 8
----------- ----------- ----------- -----------
Earnings before income
taxes 10,919 6,811 20,695 11,767
Provision for income
taxes 4,155 2,564 7,844 4,500
----------- ----------- ----------- -----------
Net income $6,764 $4,247 $12,851 $ 7,267
=========== =========== =========== ===========
Basic net income per
share $ 0.50 $ 0.37 $ 0.99 $ 0.64
=========== =========== =========== ===========
Diluted net income per
share $ 0.47 $ 0.32 $ 0.94 $ 0.56
=========== =========== =========== ===========
