Zumiez Inc. total net sales for the fourth quarter ended Jan. 29 increased 17.9% to $156.2 million from $132.4 million in the quarter ended Jan. 30, 2010.
The company posted net income for the quarter of $15.0 million, or 49 cents per diluted share. In the prior year period, Zumiez reported net income of $8.8 million, or 29 cents per diluted share, which included a non-cash charge of $1.8 million, or 4 cents per diluted share, associated with the impairment of store related assets.
Comparable store sales increased 13.0% in the fourth quarter of fiscal 2010, compared to a 1.7% decrease in the fourth quarter of fiscal 2009. Total net sales for fiscal 2010 increased 17.5% to $478.8 million from $407.6 million in fiscal 2009. The company posted net income of $24.2 million, or 79 cents per diluted share, including costs of $2.4 million, or 5 cents per diluted share, associated with the relocation of the Company's distribution center to Corona, CA from Everett, WA, and $2.1 million, or 4 cents per diluted share, for the settlement of a previously disclosed lawsuit.
In the prior year, net income was $9.1 million, or $0.30 per diluted share, including a non-cash charge of $2.5 million, or 5 cents per diluted share, associated with the impairment of store related assets, and a charge of $1.4 million, or 3 cents per diluted share, associated with the settlement of a previously disclosed lawsuit.
Comparable store sales increased 11.9% in fiscal 2010, compared to a decrease of 10.0% in fiscal 2009. As of Jan. 29, 2011, the company had cash and current marketable securities of $128.8 million, compared to cash and current marketable securities of $108.1 million as of January 30, 2010. “We are very pleased with the strength of our fiscal and fourth quarter 2010 sales, up over 17%, and the significant increase in earnings for both the year and the quarter,” commented Rick Brooks, Chief Executive Officer of Zumiez. “Our record fourth quarter earnings reflect great execution by our team and underscores the uniqueness of our concept. We believe the actions we are taking by focusing on a wide selection of brands and strong customer service, combined with the people and infrastructure investments have us well positioned to carry this momentum forward and pursue our growth initiatives.”
2011 Outlook
The company is introducing guidance for the three months ending April 30, 2011 of a net loss per diluted share of approximately 3 cents to 0 cents. This guidance is based on an anticipated comparable store sales increase in the mid to high single digit range for the first quarter of fiscal 2011.
ZUMIEZ INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
—————————————-
January 29, % of January 30, % of
2011 Sales 2010 Sales
———– —— ———— ——
Net sales $ 156,192 100.0% $ 132,433 100.0%
Cost of goods sold 95,311 61.0% 84,338 63.7%
———– —— ———— ——
Gross profit 60,881 39.0% 48,095 36.3%
Selling, general and
administrative expenses 36,867 23.6% 35,053 26.5%
———– —— ———— ——
Operating profit 24,014 15.4% 13,042 9.8%
Interest income, net 409 0.3% 351 0.2%
Other (expense) income, net (111) (0.1%) 91 0.1%
———– —— ———— ——
Earnings before income taxes 24,312 15.6% 13,484 10.1%
Provision for income taxes 9,307 6.0% 4,683 3.5%
———– —— ———— ——
Net income $ 15,005 9.6% $ 8,801 6.6%
=========== ====== ============ ======
Basic earnings per share $ 0.50 $ 0.30
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Diluted earnings per share $ 0.49 $ 0.29
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Weighted average shares used in
computation of earnings per
share:
Basic 30,160 29,624
Diluted 30,927 30,256
