Zumiez Inc. reported sales for the third quarter increased 16.9 percent to $180.0 million from $154.0 million a year ago. Comparable store sales grew 3.7 percent on top of a comparable store sales increase of 6.0 percent in the third quarter of fiscal 2011.
Net income in the third quarter of fiscal 2012 was $12.7 million, or 40 cents per diluted share, compared to net income of $14.1 million, or $0.45 cents per diluted share, in the third quarter of the prior fiscal year. The results for fiscal 2012 include $4.0 million, or approximately 10 cents per diluted share, of Blue Tomato acquisition related costs and operations, and $0.5 million, or approximately $0.01 per diluted share, of exit costs associated with the relocation of our corporate offices to Lynnwood, Washington.
Total net sales for the nine months (39 weeks) ended October 27, 2012 increased 19.6 percent to $445.0 million from $372.0 million reported for the nine months (39 weeks) ended October 29, 2011. Comparable store sales increased 8.0 percent in the first nine months of fiscal 2012 on top of 8.3 percent for the first nine months of 2011.
The company reported net income of $19.3 million or $0.61 per diluted share in the first nine months of fiscal 2012 compared to net income for the first nine months of the prior fiscal year of $18.6 million or $0.60 per diluted share. Results for the first nine months of fiscal 2012 include approximately $6.8 million, or $0.18 per diluted share, of Blue Tomato acquisition related costs and operations, and approximately $2.1 million, or $0.04 per diluted share, of costs associated with the relocation the company's ecommerce fulfillment center to Edwardsville, Kansas and corporate offices to Lynnwood, Washington from Everett, Washington.
At October 27, 2012, the company had cash and current marketable securities of $98.3 million, compared to cash and current marketable securities of $137.1 million at October 29, 2011. The decrease in cash and current marketable securities is a result of the acquisition of Blue Tomato, which was funded by the company's cash balance, offset by cash generated through operations.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our third quarter operating results reflect softer than expected sales trends in Europe and modest comparable store sales for the post back to school period. Comp trends remained challenging in November, particularly early in the month in part due to Hurricane Sandy, however we are encouraged by the more recent sales results, with positive comps over the Black Friday weekend. We believe the combination of our merchandise assortments and enhanced omni-channel capabilities, along with best in class customer service, have us well positioned to execute through the holiday season. Looking further ahead, we are confident that the key components of our long-term growth strategy will allow us to profitably expand our share of the global action sports lifestyle market and deliver increased value to our shareholders.”
November 2012 Sales
Total net sales for the four-week period ended November 24, 2012 increased 14.3 percent to $53.6 million, compared to $46.9 million for the four-week period ended November 26, 2011. The company's comparable store sales decreased 4.2 percent for the four-week period on top of a comparable store sales increase of 8.4 percent in the year ago period.
Fiscal 2012 Fourth Quarter Outlook
The company is introducing guidance for the three months ending February 2, 2013. Net sales are projected to be in the range of $218 to $221 million resulting in net income per diluted share of approximately $0.59 to $0.62. This guidance is based on an anticipated comparable store sales decrease in the range of 3 percent to 4 percent for the fourth quarter of fiscal 2012 and includes approximately $3.0 million, or $0.08 per diluted share, of costs associated with the acquisition of Blue Tomato. The company has opened 56 new stores in fiscal 2012, including 10 in Canada and 3 in Germany.
A conference call will be held today to discuss third quarter fiscal 2012 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-801-9715 followed by the conference identification code of 15611934.
About Zumiez Inc.
Zumiez is a leading multi-channel specialty retailer of action sports related apparel, footwear, equipment and accessories, focusing on skateboarding, snowboarding, surfing, motocross and BMX for young men and women. As of November 24, 2012 we operated 502 stores, 474 in the United States, 20 in Canada, and 8 in Europe. In the United States and Canada we operate under the name Zumiez and in Europe we operate under the name Blue Tomato. Additionally, we operate ecommerce web sites under www.zumiez.com and www.blue-tomato.com.
