Zumiez Inc. reported net sales for the second quarter ended July 31 increased 7.3 percent to $268.7 million from $250.4 million a year ago.

Sales came in short of analyst estimates on an average of $280.76 million.

Compared to the second quarter ended August 3, 2019 (13 weeks), second-quarter 2021 net sales increased 17.6 percent.

Net income in the second quarter of fiscal 2021 was $24.0 million, or 94 cents per diluted share, compared to net income of $25.4 million, or $1.01 per diluted share, in the second quarter of the prior fiscal year. Wall Street’s consensus estimate had been 84 cents a share.

Net income for the second quarter of 2019 was $9.0 million, or 36 cents per diluted share.

The second quarter of 2021 net income was negatively impacted by $2.8 million, or approximately 8 cents per diluted share related to the conditional settlement of a California class-action lawsuit.

Total net sales for the six months (26 weeks) ended July 31, 2021 increased 41.1 percent to $547.7 million from $388.2 million reported for the six months (26 weeks) ended August 1, 2020. Compared to the first six months (26 weeks) ended August 3, 2019, net sales increased 24.1 percent. Net income for the first six months of 2021 was $50.4 million, or $1.96 per diluted share, compared to net income for the first six months of fiscal 2020 of $4.3 million, or $0.17 per diluted share, and compared to net income for the first six months of fiscal 2019 of $9.8 million, or $0.39 per diluted share.

At July 31, 2021, the company had cash and current marketable securities of $412.0 million compared to cash and current marketable securities of $299.1 million at August 1, 2020. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures. The Company repurchased 0.2 million shares during the quarter at an average cost of $44.21 per share and a total cost of $10.9 million.

Rick Brooks, CEO, Zumiez Inc., said, “Our second-quarter performance reflects the sustained success our business has experienced over the past several years. After driving solid growth as we reopened our stores in the second quarter of last year, our teams once again did a terrific job adapting to the current environment to fulfill robust demand for our distinct merchandise offering. Stronger than expected full-priced selling helped offset a portion of expenses that were reintroduced following temporary cost savings last year during the height of the pandemic, resulting in second-quarter profitability that meaningfully exceeded our projections. The third quarter has started off well driven by a more normalized back-to-school shopping season, and while operating conditions remain volatile, we believe the flexibility of our business model provides us with key competitive advantages that we can leverage to maintain our positive momentum heading into the holidays. With our strong balance sheet and differentiated strategies, we are well-positioned to add to our global market share and return increased value to our shareholders over the long-term.”

Third Quarter To-Date
Total third quarter-to-date total sales for the 37 days ending September 6, 2021 increased 23.2 percent, compared with the same 37-day time period in the prior year ended September 7, 2020. Compared to the 37-day period ended September 9, 2019, total net sales increased 6.7 percent. Total comparable sales for the 37-day period ending September 6, 2021 were up 10.5 percent from the comparable period in the prior year and increased 5.4 percent from the comparable period in 2019. Third-quarter to date as of September 7, 2021, the company has repurchased an additional 0.5 million shares of stock at an average price of $41.62 and a total cost of $20.5 million. This brings 2021 fiscal year-to-date share repurchases to 0.7 million shares at an average cost of $42.49 per share for a total cost of $31.4 million.

Outlook
Due to the continued fast-moving nature of this situation and the uncertainty of impacts on revenue and costs, Zumiez is not providing an outlook at this time for the third quarter or the year.

Photo courtesy Zumiez