Zumiez Q2 Net Income Nearly Doubles on 47% Sales Jump

Zumiez Inc. saw second quarter total net sales jump 47.0% to $82.0 million from $55.8 million last year. The company posted net income for the quarter of $3.1 million or 11 cents per diluted share versus $1.6 million or 6 cents per diluted share in the second quarter of the prior fiscal year. Comparable store sales increased 11.6% for the second quarter of fiscal 2007 compared to a 12.6% increase in the second quarter of fiscal 2006.

Total net sales for the first six months of fiscal 2007 increased by 45.6% to $150.8 million from $103.5 million reported in the first six months of the prior year. The company posted net income of $4.7 million or 16 cents per diluted share in the first six months of 2007 versus $2.8 million or 10 cents per diluted share in the prior year. Comparable store sales increased 11.4% for the first six months of fiscal 2007 compared to 15.8% for the first six months of fiscal 2006.

Rick Brooks, president and CEO of Zumiez Inc., stated, “We are pleased to have reported another strong quarter, and feel our unique retail model has Zumiez very well positioned as we head into the back half of the year. We opened 12 new stores in the second quarter and 31 stores year-to-date. We remain on track to open 50 new stores in fiscal 2007 and continue to believe that we can eventually operate 800 Zumiez stores in the U.S.”

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%. Given the stronger than planned results in the first half of the year, the company is increasing its guidance for fiscal 2007 to 97 cents to 99 cents per diluted share, up from the previous guidance 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 CONSOLIDATED STATEMENT OF OPERATIONS
           (in thousands, except share and per share data)
                             (Unaudited)

                         Three Months Ended       Six Months Ended
                       ----------------------- -----------------------
                       August 4,    July 29,   August 4,    July 29,
                           2007        2006        2007        2006
                       ----------- ----------- ----------- -----------
Net sales              $    81,974 $    55,756 $   150,765 $   103,541
Cost of goods sold          53,701      36,981     100,677      69,500
                       ----------- ----------- ----------- -----------
Gross profit                28,273      18,775      50,088      34,041

Selling, general and
 administrative
 expenses                   23,571      16,780      43,203      30,576
                       ----------- ----------- ----------- -----------
Operating profit             4,702       1,995       6,885       3,465

Interest income, net           327         231         753         583
Other expense                    -        (16)         (1)        (16)
                       ----------- ----------- ----------- -----------
Earning before income
 taxes                       5,029       2,210       7,637       4,032

Provision for income
 taxes                       1,911         568       2,902       1,281
                       ----------- ----------- ----------- -----------

Net income             $     3,118 $     1,642 $     4,735 $     2,751
                       =========== =========== =========== ===========

Basic net income per
 share                 $      0.11 $      0.06 $      0.17 $      0.10
                       =========== =========== =========== ===========

Diluted net income per
 share                 $      0.11 $      0.06 $      0.16 $      0.10
                       =========== =========== =========== ===========

Weighted average shares
 outstanding, Basic     28,540,326  27,396,890  28,478,125  27,299,864

Weighted average shares
 outstanding, Diluted   29,186,270  28,903,588  29,094,234  28,768,373