Zumiez Inc. reported earnings in its first quarter slid 44.4 percent to $2.5 million, or 8 cents per share, compared to net income of $4.5 million, or 14 cents, a year ago.
Sales for the first quarter ended May 4 increased 14.3 percent to $148.5 million from $129.9 million in the year-ago quarter. Comparable store sales for the thirteen weeks ended May 4, 2013 decreased (0.7 percent) compared to a comparable store sales increase of 12.9 percent for the thirteen weeks ended April 28, 2012.
At May 4, 2013, the company had cash and current marketable securities of $97.6 million compared to cash and current marketable securities of $171.2 million at April 28, 2012. The decrease in cash and current marketable securities is a result of the acquisition of Blue Tomato, which was funded by the Company’s cash and current marketable securities balance, as well as capital expenditures and stock repurchases, offset by cash generated through operations.
“Our business improved throughout the first quarter driven by strong full price selling during the combined March/April period,” said CEO Rick Brooks. “These results, which were delivered in a more challenging operating environment than a year ago, reflect the success of our continued execution on long-term growth strategies and the strength of our highly differentiated and diverse merchandise offering. We remain confident that our current course can continue to yield increased top and bottom line long-term gains.”
Fiscal 2013 Second Quarter Outlook
The company is introducing guidance for the three months ending Aug. 3, 2013. Net sales are projected to be in the range of $155-$158 million resulting in net income per diluted share of approximately $0.12 to $0.14, which includes an estimated $1.6 million, or approximately $0.04 per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on anticipated comparable store sales in the range of flat to an increase of 2 percent for the second quarter of fiscal 2013.
Zumiez currently intends to open 58 new stores in fiscal 2013, including nine stores in Canada and six stores in Europe.
As of May 4, 2013, the company operated 503 stores, 475 in the United States, 22 in Canada, and 6 in Europe.