Zumiez Inc. had a busy end to the companys first quarter, posting strong sales results which converted last years net loss to a gain this time around and executing a two-for-one stock split of its common stock near the end of April.
Total net sales for the first quarter increased 43.2% to $47.8 million from $33.4 million reported in the first quarter of the prior fiscal year. Same-store sales increased in each up the quarters three months, up 28.0%, 14.3%, and 19.3%, respectively. In addition to the strong comp gains, 34 new stores in the running year, a double-digit increase in same-store transactions, and an increase in average unit retail fueled the net sales increase. All categories were said to “comp positively” in the quarter, but “juniors has been the toughest part of [their] business in terms of comp performance.”
Zumiez opened 5 new stores during the quarter and remains on track to open 42 doors this year, increasing square footage by “at least 20%.” The company believes it can eventually reach 800 stores.
The company stated that it is raising guidance for fiscal 2006 to 65 cents to 66 cents from the prior split-adjusted guidance of 61 cents in diluted earnings per share, of which 1 cents to 2 cents is from the acquisition of Fast Forward. The company also stated that it believes that its projected earnings growth rate of 30% continues to be achievable for fiscal 2006 and beyond.
| Zumiez, Inc. | |||
| First Quarter Results | |||
| (in $ millions) | 2006 | 2005 | Change |
| Total Sales | $47.8 | $33.4 | +43.2% |
| GP % | 31.9% | 29.5% | +240 bps |
| Net Income | $1.1 | $0.0 | +2675% |
| Diluted EPS | 4¢ | 0¢ | n/a |
| Comp Sales | +19.7% | +12.1% | |
| Inventory* | $38.1 | $31.3 | +21.7% |
| *at quarter-end | |||
