Zumiez Inc. reported third-quarter earnings grew 5.5 percent as sales advanced 6.8 percent. Earnings marked a record and topped Wall Street targets.

Net sales for the third quarter ended October 30, 2021 (13 weeks) increased 6.8 percent to $289.5 million from $271.0 million in the third quarter ended October 31, 2020 (13 weeks). Compared to the third quarter ended November 2, 2019 (13 weeks), third quarter 2021 net sales increased 9.6 percent. Net income in the third quarter of fiscal 2021 was $30.7 million, or $1.25 per diluted share, compared to net income of $29.1 million, or $1.16 per diluted share, in the third quarter of the prior fiscal year. Net income for the third quarter of 2019 was $19.2 million, or $0.75 per diluted share.

Earnings at $1.25 easily topped analysts’ consensus estimate of $1.09. Revenue for the quarter came in at $289.5 million versus the consensus estimate of $290.81 million.

Total net sales for the nine months (39 weeks) ended October 30, 2021 increased 27.0 percent to $837.2 million from $659.1 million reported for the nine months (39 weeks) ended October 31, 2020. Compared to the first nine months (39 weeks) ended November 2, 2019, net sales increased 18.7 percent. Net income for the first nine months of 2021 was $81.1 million, or $3.20 per diluted share, compared to net income for the first nine months of fiscal 2020 of $33.4 million, or $1.32 per diluted share, and compared to net income for the first nine months of fiscal 2019 of $29.0 million, or $1.14 per diluted share.

At October 30, 2021, the company had cash and current marketable securities of $338.1 million compared to cash and current marketable securities of $316.2 million at October 31, 2020. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by share repurchases and capital expenditures. The company repurchased 2.2 million shares during the quarter at an average cost of $41.00 per share and a total cost of $91.6 million.

Rick Brooks, CEO, Zumiez Inc., said, “Our business continues to perform extremely well. With a strong back-to-school season driving record third-quarter results, we generated more income in the first nine months of 2021 than in any full-year period in the company’s history and we still have the important holiday season ahead of us. Our operating model has again proven to be highly adaptable as we’ve recently navigated multiple external headwinds starting with the pandemic in early 2020 and now global supply chain disruptions to capitalize on strong consumer demand and expand our market share. The fourth quarter has started well and we are confident that our investments in people, sourcing and fulfillment will allow us to serve our consumers this holiday season with the distinct merchandise, great service and seamless shopping experiences that are the pillars of Zumiez’s long-term success.”

Fourth Quarter To-Date
Total fourth quarter-to-date total sales for the 31 days ending November 30, 2021 increased 11.5 percent, compared with the same 31-day time period in the prior year ended December 1, 2020. Compared to the 31-day period ended December 3, 2019, total net sales increased 8.6 percent. Total comparable sales for the 31-day period ending November 30, 2021 were up 8.4 percent from the comparable period in the prior year and increased 6.5 percent from the comparable period in 2019. During the 31 days ending November 30, 2021 we have again experienced closures in Europe as a result of the pandemic. We continue to monitor this situation closely as sustained closures may have an impact on our fourth-quarter results. Fourth quarter-to-date as of November 30, 2021, the company has repurchased an additional 0.4 million shares of stock at an average price of $47.91 and a total cost of $17.5 million. This brings 2021 fiscal year-to-date share repurchases to 2.8 million shares at an average cost of $42.16 per share for a total cost of $120.0 million.

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

Photo courtesy Zumiez