Zumiez Inc. reported net income in the third quarter increased 32.6 percent to
$15.7 million, or 54 cents per diluted share, compared to net income of
$11.9 million, or 39 cents per diluted share, in the third quarter of the
prior fiscal year.

The results for fiscal 2014 include costs of
approximately $0.6 million, or 2 cents per diluted share, for charges
associated with the acquisition of Blue Tomato, and the results for
fiscal 2013 include costs of $1.7 million for charges associated with
the acquisition of Blue Tomato and $1.3 million for the conditional
settlement of a previously disclosed California class action wage and
hour lawsuit, or $7 cents per diluted share in total.

Total net sales for the third quarter ended November 1, 2014 (13 weeks) increased 11.6 percent to $213.3 million from $191.1 million in the quarter ended November 2, 2013 (13 weeks). Comparable sales for the thirteen weeks ended November 1, 2014 increased 3.7 percent on top of a comparable sales increase of 1.5 percent for the thirteen weeks ended November 2, 2013. Net income in the third quarter of fiscal 2014 increased 32.6 percent to $15.7 million, or $0.54 per diluted share, compared to net income of $11.9 million, or $0.39 per diluted share, in the third quarter of the prior fiscal year. The results for fiscal 2014 include costs of approximately $0.6 million, or $0.02 per diluted share, for charges associated with the acquisition of Blue Tomato, and the results for fiscal 2013 include costs of $1.7 million for charges associated with the acquisition of Blue Tomato and $1.3 million for the conditional settlement of a previously disclosed California class action wage and hour lawsuit, or $0.07 per diluted share in total.

Total net sales for the nine months (39 weeks) ended November 1, 2014 increased 11.2 percent to $553.0 million from $497.5 million reported for the nine months (39 weeks) ended November 2, 2013. Comparable sales increased 3.0 percent for the thirty nine weeks ended November 1, 2014 on top of a comparable sales increase of 0.7 percent for the thirty nine weeks ended November 2, 2013.

Net income in the first nine months of fiscal 2014 increased 34.5 percent to $25.7 million, or $0.88 per diluted share, compared to net income for the first nine months of the prior fiscal year of $19.1 million, or $0.63 per diluted share. Results for the first nine months of fiscal 2014 include approximately $1.9 million, or $0.05 per diluted share, for charges associated with the acquisition of Blue Tomato. Results for the first nine months of fiscal 2013 include approximately $6.3 million, or $0.16 per diluted share, for charges associated with the acquisition of Blue Tomato and the conditional settlement of a California class action wage and hour lawsuit.

At November 1, 2014, the company had cash and current marketable securities of $108.7 million compared to cash and current marketable securities of $94.2 million at November 2, 2013. The increase in cash and current marketable securities is a result of cash generated through operations, partially offset by capital expenditures and stock repurchases.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, We delivered double digit earnings growth in the third quarter driven by higher than expected sales along with lower than planned operating expenses. The merchandising, selling and marketing strategies weve implemented across our global platform are resonating with consumers and strengthening our brand position as a leading lifestyle retailer. We are optimistic about our growth prospects this holiday season and more importantly over the long-term.

November 2014 Sales

Total net sales for the four-week period ended November 29, 2014 increased 12.6 percent to $70.3 million, compared to $62.4 million for the four-week period ended November 30, 2013. The companys comparable sales increased 6.3 percent for the four-week period ended November 29, 2014 on top of a comparable sales increase of 1.7 percent for the four-week period ended November 30, 2013.

Fiscal 2014 Fourth Quarter Outlook

The company is introducing guidance for the three months ending January 31, 2015. Net sales are projected to be in the range $249 to $251 million resulting in net income per diluted share of approximately $0.69 to $0.72, which includes an estimated $0.6 million, or approximately $0.02 per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on an anticipated comparable sales increase in the 3 percent to 4 percent range for the fourth quarter of fiscal 2014.

The company currently intends to open 56 new stores in fiscal 2014, including 7 stores in Canada and 6 stores in Europe.