Zumiez Inc. reported total net sales for the third quarter ended Nov. 2 increased 6.2 percent to $191.1 million from $180.0 million a year ago.
Comparable store sales for the period increased 1.5 percent on top of a comparable store sales increase of 3.7 percent for the 13 weeks ended Oct. 27, 2012.
Net income in the third quarter of fiscal 2013 was $11.9 million, or 39 cents per diluted share, compared to net income of $12.7 million, or 40 cents per diluted share, in the third quarter of the prior fiscal year.
“The quarter began with a solid Back-to-School season, and while softer traffic trends returned, we were able to maintain a positive comparable store sales result for the quarter,” said CEO Rick Brooks. “We believe the investments in our people, merchandise assortment planning and omni-channel capabilities are helping to further distinguish our concept and enabling us to gain market share. We are committed to selling the most compelling mix of brands and products coveted by our customer in a unique, personalized and efficient manner across all channels, and we believe our business is well positioned for the upcoming holiday season and more importantly the long-term.”
Total net sales for the nine months (39 weeks) ended Nov. 2, 2013 increased 11.8 percent to $497.5 million from $445.0 million for the nine months (39 weeks) ended Oct. 27, 2012. Comparable store sales increased 0.7 percent for the 39 weeks ended Nov. 2, 2013 on top of a comparable store sales increase of 8.0 percent for the 39 weeks ended Oct. 27, 2012.
The company is introducing guidance for the three months ending Feb. 1, 2014. Net sales are projected to be in the range of $230-237 million resulting in net income per diluted share of approximately60 to 66 cents, which includes an estimated $1.7 million, or approximately 5 cents per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on anticipated comparable store sales in the range of 1 to 2 percent. The company is planning to open 59 new stores in fiscal 2013, including 9 in Canada and 6 in Europe.
Zumiez also announced that its board of directors approved the repurchase of up to $30 million of its Common Stock effective as of Dec. 4. The repurchases will be made from time to time on the open market at prevailing market prices and are expected to continue through the fiscal year 2014, which will end Jan. 31, 2015, unless the time period is extended or shortened by the Board of Directors. The new repurchase program supersedes the previously approved repurchase program approved on Dec. 17, 2012, which as of Dec. 4, 2013 had $12.5 million of stock repurchase authorization.
ZUMIEZ INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||
November 2, 2013 | % of Sales | October 27, 2012 | % of Sales | ||||||||||||
Net sales | $ | 191,145 | 100.0 | % | $ | 180,023 | 100.0 | % | |||||||
Cost of goods sold | 120,356 | 63.0 | % | 112,948 | 62.7 | % | |||||||||
Gross profit | 70,789 | 37.0 | % | 67,075 | 37.3 | % | |||||||||
Selling, general and administrative expenses | 50,111 | 26.2 | % | 45,674 | 25.4 | % | |||||||||
Operating profit | 20,678 | 10.8 | % | 21,401 | 11.9 | % | |||||||||
Interest income, net | 171 | 0.1 | % | 235 | 0.1 | % | |||||||||
Other expense, net | (587 | ) | (0.3 | %) | (185 | ) | (0.1 | %) | |||||||
Earnings before income taxes | 20,262 | 10.6 | % | 21,451 | 11.9 | % | |||||||||
Provision for income taxes | 8,402 | 4.4 | % | 8,784 | 4.9 | % | |||||||||
Net income | $ | 11,860 | 6.2 | % | $ | 12,667 | 7.0 | % | |||||||
Basic earnings per share | $ | 0.40 | $ | 0.41 |