Zumiez Inc. reported sales for the second quarter increased 14.9 percent to $112.2 million from $97.7 million reported a year ago. Comparable store sales increased 7.5 percent on top of an increase of 9.3 percent for the second quarter of fiscal 2010.  

The company posted net income for the quarter of $2.6 million or $0.08 per diluted share compared to a net loss of $1.2 million or $0.04 per diluted share.   The results for the second quarter 2010 include costs of $1.0 million, or approximately $0.02 per diluted share, associated with the relocation of the company's distribution center from Everett, Washington to Corona, California, and $2.1 million, or approximately $0.04 per diluted share, for the settlement of a previously disclosed lawsuit.

Total net sales for the six months (26 weeks) ended July 30, 2011 increased 16.7 percent to $218.1 million from $186.8 million reported for the six months (26 weeks) ended July 31, 2010.   The company reported net income of $4.5 million or $0.14 per diluted share in the first six months of fiscal 2011 compared to a net loss in the first six months of the prior fiscal year of $3.1 million or $0.10 per diluted share.   Results for the first six months of fiscal 2010 include costs of $2.2 million, or approximately $0.05 per diluted share, associated with the relocation of the company's distribution center, and $2.1 million, or approximately $0.04 per diluted share, for the settlement of a previously disclosed lawsuit.   Comparable store sales increased 9.9 percent in the first six months of fiscal 2011 on top of 9.2 percent for the first six months of 2010.

At July 30, 2011, the company had cash and current marketable securities of $131.9 million compared to cash and current marketable securities of $91.3 million at July 31, 2010.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are pleased with the sales and earnings growth we delivered for the quarter.   Our merchandise and expansion strategies are driving improvements across our business and are continuing to strengthen Zumiez's position as the leading action sports retailer.   We remain optimistic that our diverse product offering, compelling mix of brands, and commitment to customer service will distinguish our concept further from the promotional competition and provide us with strategic advantages during the key upcoming selling seasons.”

August 2011 Sales

Total net sales for the four-week period ended August 27, 2011 increased 10.9 percent to $65.9 million, compared to $59.4 million for the four-week period ended August 28, 2010.   The company's comparable store sales increased 4.3 percent for the four-week period on top of a comparable store sales increase of 9.1 percent in the year ago period.

Third Quarter 2011 Outlook

The company is introducing guidance for the three months ending October 29, 2011 of net income per diluted share of approximately $0.37 to $0.39 per diluted share.   This guidance is based on an anticipated comparable store sales increase in the low single digit range for the third quarter of fiscal 2011.

The company currently intends to open approximately 45 new stores in fiscal 2011, including its first stores in Canada, with an opening cadence similar to fiscal 2010.

                                 ZUMIEZ INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                 (Unaudited)

                                             Three Months Ended
                                 -----------------------------------------
                                  July 30,     % of     July 31,    % of
                                    2011      Sales       2010      Sales
                                 ---------- ---------  ---------  --------
Net sales                        $  112,213     100.0% $  97,702     100.0%
Cost of goods sold                   74,916      66.8%    67,203      68.8%
                                 ---------- ---------  ---------  --------
Gross profit                         37,297      33.2%    30,499      31.2%

Selling, general and
 administrative expenses             33,747      30.0%    32,867      33.6%
                                 ---------- ---------  ---------  --------
Operating profit (loss)               3,550       3.2%    (2,368)     (2.4%)

Interest income, net                    434       0.4%       352       0.4%
Other income, net                         3       0.0%        47       0.0%
                                 ---------- ---------  ---------  --------
Earnings (loss) before income
 taxes                                3,987       3.6%    (1,969)     (2.0%)

Provision (benefit) for income
 taxes                                1,396       1.3%      (755)     (0.8%)
                                 ---------- ---------  ---------  --------

Net income (loss)                $    2,591       2.3% $  (1,214)     (1.2%)
                                 ========== =========  =========  ========

Basic earnings (loss) per share  $     0.08            $   (0.04)
                                 ==========            =========

Diluted earnings (loss) per
 share                           $     0.08            $   (0.04)
                                 ==========            =========
Weighted average shares used in
 computation of earnings (loss)
 per share:
  Basic                              30,521               29,954

  Diluted                            31,081               29,954