Zumiez Shows Benefits of Balanced Growth and Monthly Consistency…

Zumiez Inc. strung together three consecutive months of strong comparable store sales gains during the third quarter to average out to a 9.8% overall comp sales increase on top of a 9.0% gain in the year-ago quarter. Management was predictably excited about the good results, but pointed to strong comps of 12.5% during last year’s fourth quarter to temper the look ahead.

The action sports retailer saw strength in all of its departments with men’s leading the way on a 12% comparable store sales increase, followed up by the “other” department, which includes hardgoods, posting a 10% same-store sales jump, and juniors comping up 5%. The other department accounted for the majority of sales with a 52% share, while men’s was at 32% and juniors was at 16%.

For fiscal 2005, the company plans to open 35 new stores. In the first nine months of fiscal 2005, Zumiez opened 25 new stores and remains on plan for its store openings for the remainder of the year with all doors expected to be open by Thanksgiving. The company plans to continue expansion during 2006, projecting 42 store opening creating a 20% increase in total square footage.

For the fourth quarter, management expects “mid-single-digit” same-store sales gains as a result of the strong 12.5% fourth quarter comps experienced during last year’s quarter. Diluted earnings per share for the full fiscal year are expected to range from 84 cents to 85 cents. This is an increase from previous guidance of diluted earnings per share of 80 cents to 82 cents and the fiscal 2004 amount of 56 cents per diluted share. The updated guidance includes estimated expenses incurred in connection with a previously announced secondary offering. The company also stated that it believes that its projected earnings growth rate of 30% continues to be achievable for 2006 and beyond.