Zumiez Inc. saw third quarter net sales jump 26.5% to $104.0 million from $82.3 million reported in the third quarter last year. The company posted net income for the quarter of $8.1 million or 28 cents per diluted share versus $6.8 million or 24 cents per diluted share in the third quarter of the prior fiscal year. Comparable store sales increased 13.2% for the third quarter of fiscal 2007 compared to a 10.7% increase in the third quarter of fiscal 2006.
Total net sales for the first nine months (39 week period) of fiscal 2007 increased by 37.1% to $254.8 million from $185.8 million reported in the first nine months of the prior year. The company posted net income of $12.9 million or 44 cents per diluted share in the first nine months of 2007 versus $9.6 million or 33 cents per diluted share in the prior year. Comparable store sales increased 12.2% for the first nine months of fiscal 2007 compared to 13.6% for the first nine months of fiscal 2006.
Rick Brooks, president and CEO of Zumiez Inc., stated, “We opened 17 new stores in the third quarter and 48 stores year-to-date. In November, we reached our goal of 50 new stores in fiscal 2007, and continue to believe that we can eventually operate 800 Zumiez stores in the U.S. We remain optimistic for the long term prospects of Zumiez as we have cultivated a unique brand in the action sports industry. We believe the investments we are making, along with our proven strategy, will continue to drive quality long-term growth.”
2007 Outlook
The company is reiterating its diluted earnings per share guidance for fiscal 2007 of 92 cents to 94 cents. Weighted average diluted shares for the fiscal year are expected to be approximately 29,400,000.
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ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share data) (Unaudited) |
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Three Months Ended | Nine Months Ended | ||||||||||
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November 3, 2007 |
October 28, 2006 |
November 3, 2007 |
October 28, 2006 |
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| Net sales | $ | 104,045 | $ | 82,258 | $ | 254,810 | $ | 185,799 | ||||
| Cost of goods sold | 65,466 | 51,994 | 166,143 | 121,494 | ||||||||
| Gross profit | 38,579 | 30,264 | 88,667 | 64,305 | ||||||||
| Selling, general and administrative expenses | 25,857 | 19,343 | 69,060 | 49,919 | ||||||||
| Operating profit | 12,722 | 10,921 | 19,607 | 14,386 | ||||||||
| Interest income, net | 420 | 230 | 1,171 | 813 | ||||||||
| Other income (expense) | 2 | – | 3 | (16 | ) | |||||||
| Earnings before income taxes | 13,144 | 11,151 | 20,781 | 15,183 | ||||||||
| Provision for income taxes | 4,995 | 4,324 | 7,897 | 5,605 | ||||||||
| Net income | $ | 8,149 | $ | 6,827 | $ | 12,884 | $ | 9,578 | ||||
| Basic net income per share | $ | 0.28 | $ | 0.25 | $ | 0.45 | $ | 0.35 | ||||
| Diluted net income per share | $ | 0.28 | $ | 0.24 | $ | 0.44 | $ | 0.33 | ||||
| Weighted average shares used in computation of earnings per share: | ||||||||||||
| Basic | 28,862,951 | 27,600,574 | 28,477,471 | 27,454,193 | ||||||||
| Diluted | 29,554,774 | 28,861,871 | 29,386,951 | 28,756,468 | ||||||||
