Apparel and footwear retailer Zumiez Inc. reported a net loss of $2.6 million, or 10 cents per diluted share, in the first quarter of fiscal 2018 ended May 5, compared to a net loss of $4.4 million, or 18 cents per diluted share, in the prior-year first quarter. The company beat analysts’ consensus estimates by 2 cents per share.
Total net sales for the 13-week quarter increased 13.9 percent to $206.3 million from $181.2 million in the first quarter ended April 29, 2017 (also 13 weeks), beating analysts estimates by $7 million.
Comparable sales for the 13 weeks ended May 5 increased 8.3 percent compared to a comparable sales increase of 1.8 percent for the 13 weeks ended April 29, 2017.
At May 5, 2018, cash and current marketable securities increased 54.2 percent to $118 million, compared to cash and current marketable securities of $76.5 million at April 29, 2017. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures.
“Our new fiscal year is off to a very good start,” said Rick Brooks, CEO of Zumiez Inc. “The strong top-line momentum we achieved in 2017 accelerated during the first quarter fueled by the strength of our assortments and the seamless shopping experience we’ve created for consumers who interact with our brand. With comparable sales increasing 8.3 percent, we generated significant expense leverage and dramatically improved our bottom line performance year-over-year. We are confident that we are on the right path to further expand our global market share and drive increased value for our customers, our employees, our brand partners and our shareholders over the long-term.”
May 2018 Sales
Total net sales for the four-week period ended June 2, 2018 increased 12.2 percent to $59.7 million, compared to $53.2 million for the four-week period ended May 27, 2017. The company’s comparable sales increased 7.5 percent for the four-week period ended June 2, 2018, compared to a comparable sales increase of 3.3 percent for the four-week period ended May 27, 2017.
Fiscal 2018 Second Quarter Outlook
The company is introducing guidance for the three months ending August 4, 2018. Net sales are projected to be in the range of $213 million to $217 million, including anticipated comparable sales growth of between 3 percent and 5 percent. Consolidated operating margins are expected to be between 1.2 percent and 2 percent, resulting in net income per share of approximately 4 cents to 9 cents. The company currently intends to open approximately 13 new stores in fiscal 2018, including up to six stores in the U.S., five stores in Europe and two stores in Australia.
Photo courtesy Zumiez Inc.