Zumiez Inc. reported a 43% increase in net sales for the third quarter to $82.3 million from $57.4 million in the year-ago period. The company saw net income rise to $6.8 million or 24 cents per diluted share from $5.3 million or 18 cents per diluted share last year. Comparable store sales were 10.7% for the quarter, on top of a 9.8% gain one year ago.
Total net sales for the first nine months (39 week period) of fiscal 2006 increased by 43% to $185.8 million from $130.2 million reported in the first nine months of the prior year. The company posted net income of $9.6 million or 33 cents per diluted share in the first nine months of 2006 versus $6.1 million or 23 cents per diluted share in the prior year. Comparable store sales increased 13.6% for the first nine months of fiscal 2006 compared to 10.8% for the first nine months of fiscal 2005.
Rick Brooks, president and CEO of Zumiez Inc., stated, “We are pleased with our third quarter results and the earnings growth driven by our team year to date. During the quarter, Zumiez opened 12 stores and remains on track to open 42 new stores in fiscal 2006, in addition to the 19 Fast Forward stores acquired in the second quarter.”
Mr. Brooks concluded, “While we are proud of our accomplishments so far this year, we believe we are still in the early stages of our growth potential and we continue to strive to improve the store experience for our customers. We had 233 stores at quarter end, and believe we can eventually operate 800 stores in the U.S. In fiscal 2007, we plan to open 50 new stores, consistent with our long-term goal of expanding square footage by 20-25% annually. We have a terrific team in place to deliver on our goals as we expand in the marketplace.”
2006 Outlook
The company stated that it is maintaining guidance for fiscal 2006 to 66 cents to 67 cents in diluted earnings per share. Weighted average diluted shares for the fiscal year are expected to be approximately 28,900,000.
ZUMIEZ INC.
CONDENSED STATEMENT OF INCOME
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------ ------------------------
October 28, October 29, October 28, October 29,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net sales $82,258 $57,412 $185,799 $130,188
Cost of goods sold 51,994 35,999 121,494 86,153
----------- ----------- ----------- -----------
Gross profit 30,264 21,413 64,305 44,035
Selling, general
and administrative
expenses 19,343 13,198 49,919 34,530
----------- ----------- ----------- -----------
Operating profit 10,921 8,215 14,386 9,505
Interest income
(expense), net 230 221 813 269
Other income
(expense), net -- 1 (16) 2
----------- ----------- ----------- -----------
Earnings before
income taxes 11,151 8,437 15,183 9,776
Provision for
income taxes 4,324 3,158 5,605 3,689
----------- ----------- ----------- -----------
Net income $ 6,827 $ 5,279 $ 9,578 $ 6,087
=========== =========== =========== ===========
Basic net income
per share $ 0.25 $ 0.19 $ 0.35 $ 0.24
=========== =========== =========== ===========
Diluted net income
per share $ 0.24 $ 0.18 $ 0.33 $ 0.23
=========== =========== =========== ===========
Weighted average
shares
outstanding, Basic 27,600,574 27,089,364 27,454,193 25,424,554
Weighted average
shares
outstanding,
Diluted 28,861,871 28,601,778 28,756,468 26,923,744
