Zumiez Inc. reported total net sales for the third quarter ended Oct. 30 increased 20.0% to $135.9 million from $113.2 million reported in the third quarter ended Oct. 31, 2009.
Comparable store sales for the third fiscal quarter of 2010 increased 14.4% vs. a decrease of 8.0% for the third quarter of fiscal 2009. Net income in the third quarter of 2010 increased 143% to $12.3 million, or 40 cents per diluted share from net income of $5.1 million, or 17 cents per diluted share in the third quarter of the prior fiscal year.
At Oct. 30, 2010, the Company had cash and current marketable securities of $98.9 million compared to cash and current marketable securities of $81.8 million at October 31, 2009.
November 2010 Sales
Total net sales for the four-week period ended November 27, 2010 increased 26.2% to $40.4 million, compared to $32.0 million for the four-week period ended November 28, 2009. The company's comparable store sales increased 20.7% for the four-week period, versus a comparable store sales decrease of 8.5% in the year ago period.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are pleased our third quarter 2010 financial results exceeded our expectations resulting in the highest third quarter profit in our history. Our ongoing investments continue to differentiate the Zumiez shopping experience. Our unique assortment of brands, best in class customer service combined with compelling pricing strategies further distinguished our concept from the competition during back-to-school. We are pleased that the strength we saw in October has continued in November with same store sales again increasing over 20%.”
2010 Outlook
The company is introducing guidance for the three months ending January 29, 2011 of net income per diluted share of approximately 43 cents to 47 cents per share. This guidance is based on an anticipated comparable store sales increase in the low double digit to mid teen range for the fourth quarter of fiscal 2010.
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
——————————————
October 30, % of October 31, % of
2010 Sales 2009 Sales
———- ——— ———- ———
Net sales $ 135,859 100.0% $ 113,192 100.0%
Cost of goods sold 82,811 61.0% 73,093 64.6%
———- ——— ———- ———
Gross profit 53,048 39.0% 40,099 35.4%
Selling, general and
administrative expenses 34,073 25.0% 31,742 28.0%
———- ——— ———- ———
Operating profit 18,975 14.0% 8,357 7.4%
Interest income, net 370 0.3% 161 0.1%
Other income, net 32 0.0% 5 0.0%
———- ——— ———- ———
Earnings before income taxes 19,377 14.3% 8,523 7.5%
Provision for income taxes 7,065 5.2% 3,450 3.0%
———- ——— ———- ———
Net income $ 12,312 9.1% $ 5,073 4.5%
========== ========= ========== =========
Basic earnings per share $ 0.41 $ 0.17
========== ==========
Diluted earnings per share $ 0.40 $ 0.17
========== ==========
Weighted average shares used in
computation of earnings per
share:
Basic 30,029 29,563
Diluted 30,762 30,244
