Zumiez Posts 45% Net Income Jump for Q1

Zumiez Inc. reported a 44.0% jump in first quarter net revenues to $68.8 million from $47.8 million in the same period last year. The company posted a 45.5% net income increase for the quarter to $1.6 million or 6 cents per diluted share versus $1.1 million or 4 cents per diluted share in the first quarter of the prior fiscal year. Comparable store sales increased 11.3% for the quarter on top of a 19.7% increase last year.

Rick Brooks, president and CEO of Zumiez Inc., stated, “With strong increases in sales and earnings, we are pleased with our first quarter operating results and are confident that we are well positioned for another great year at Zumiez. We opened 19 new stores in the first quarter, accelerating our store openings from prior years. We remain on track to open 50 new stores in fiscal 2007, most of which will be opened by the end of the third quarter.”

2007 Outlook

The company remains focused on its long-term financial targets of comparable store sales growth in the mid single digit range, net square footage expansion of approximately 20%, and diluted EPS growth in excess of 30%. As such, the company is reaffirming its previous guidance for fiscal 2007 of 94 cents to 96 cents in diluted earnings per share. Weighted average diluted shares for the fiscal year are expected to be approximately 29,500,000.

                            ZUMIEZ INC.
                    CONDENSED STATEMENT OF INCOME
           (in thousands, except share and per share data)
                             (Unaudited)

                                              Three Months Ended
                                         -----------------------------
                                          May 5, 2007   April 29, 2006
                                         -------------- --------------
Net sales                                 $     68,791   $     47,785
Cost of goods sold                              46,976         32,519
                                         -------------- --------------
Gross profit                                    21,815         15,266

Selling, general and administrative
 expenses                                       19,632         13,796
                                         -------------- --------------
Operating profit                                 2,183          1,470

Interest income, net                               426            352
Other income (expense), net                         (1)            --
                                         -------------- --------------
Earnings before income taxes                     2,608          1,822

Provision for income taxes                         991            713
                                         -------------- --------------
Net income                                $      1,617   $      1,109
                                         ============== ==============

Basic net income per share                $       0.06   $       0.04
                                         ============== ==============

Diluted net income per share              $       0.06   $       0.04
                                         ============== ==============

Weighted average shares outstanding,
 Basic                                      27,975,278     27,272,799

Weighted average shares outstanding,
 Diluted                                    29,008,312     28,631,942