Zumiez Inc. reported fourth-quarter sales increased 12.7% to $126.6 million from $112.4 million a year ago. Net income reached $12.4 million or 42 cents a share, from $11.3 million or 39 cents, a year ago, a gain of 9.7%.


Comparable store sales increased 4.0% for the fourth quarter of fiscal 2007 compared to a 12.0% increase in the fourth quarter of fiscal 2006.

Rick Brooks, president and CEO of Zumiez, stated, “While we experienced some softness in sales late in the year, Zumiez still posted record sales and earnings results for both fiscal 2007 and the fourth quarter, and we opened 50 new stores bringing our total store count to 285 at the end of the year. Although there may be some near-term challenges in fiscal 2008, we remain upbeat regarding the long term prospects for Zumiez. We believe we are making the right investments and decisions to prudently manage through 2008, while keeping long-term profitable growth as our highest priority.”


2008 Outlook


The company introduced guidance for fiscal 2008 of approximately 90 to 93 cents per share. that's slightly above the 86 cents a share reported for fiscal  2007.


Zumiez said the guidance is based on anticipated square footage growth of approximately 20% and on a flat to low-single digit increase in comparable store sales. It anticipates opening about 57 stores in 2008, in-line with our targeted square footage growth of 20% per year. Weighted average diluted shares for the fiscal year are expected to be approximately 29,700,000.


ZUMIEZ INC.



CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS



(in thousands, except share and per share data)



(Unaudited)










































































































































































































































 

Three Months Ended


Twelve Months Ended

February 2,   February 3, February 2,   February 3,

2008

2007 2008 2007
Net sales $126,606 $112,378 $381,416 $298,177
Cost of goods sold 78,039 68,265 244,429 189,959

Gross profit

48,567 44,113 136,987 108,218
 
Selling, general and administrative expenses 29,229 26,055 98,042 75,774
Operating profit 19,338 18,058 38,945 32,444
 
Interest income, net 551 365 1,722 1,178
Other income (expense) – –   3 (16)
Earnings before income taxes 19,889 18,423 40,670 33,606
 
Provision for income taxes 7,447 7,145 15,344 12,750
 
Net income $12,442 $11,278 $25,326 $20,856
 
Basic net income per share $0.43 $0.41 $0.89 $0.76
 
Diluted net income per share $0.42 $0.39 $0.86 $0.73
 

Weighted average shares used in


computation of earnings per share:

Basic 29,002,852 27,789,980 28,608,818 27,542,891
 
Diluted 29,321,680 28,973,631 29,322,337 28,703,037