Zumiez, Inc. continues its impressive roll through the year, this time
notching a mid-40s net sales growth on low-teens comps. All the while,
the company grew margins and lowered expenses to see the bottom line
come in just shy of double the year-ago result, which led to an
increase in guidance.
Second quarter net sales jumped 47.0% to $82.0 million from $55.8
million last year as comparable store sales increased 11.6% on top of a
12.6% increase in the second quarter of fiscal 2006. Gross margins
increased 80 basis points to 34.5% of net sales, while SG&A
expenses decreased 130 basis points to 28.8%. The combination fueled a
93.8% increase in net income to $3.1 million from $1.6 million, or
growing to 11 cents per diluted share from 6 cents in the year-ago
quarter.
The company continues to forecast comparable store sales growth in the
mid-singles, with net square footage expansion of approximately 20%,
and diluted EPS growth in excess of 30%. More specifically, the
company increased its guidance for fiscal 2007 to 97 cents to 99 cents
per diluted share, up from the previous guidance of 94 cents to 96
cents in diluted earnings per share.
