Zumiez Inc. reported earnings rose 12.9 percent in the fourth quarter ended January 30 on a 4.7 percent same-store gain.

Total net sales for the fourth quarter ended January 30, 2021 (13 weeks) increased 0.8 percent to $331.5 million from $328.8 million in the quarter ended February 1, 2020 (13 weeks). Results topped Wall Street’s consensus estimate of $327.27 million.

Comparable sales for the thirteen weeks ended January 30, 2021 increased 4.7 percent compared to a comparable sales increase of 6.4 percent for the thirteen weeks ended February 1, 2020.

Net income for the fourth quarter of fiscal 2020 was $42.8 million, or $1.68 per diluted share, compared to net income of $37.9 million, or $1.48 per diluted share in the fourth quarter of the prior fiscal year. Results topped Wall Street’s consensus estimate of $1.63.

Total net sales for fiscal 2020 (52 weeks) ended January 30, 2021 decreased 4.2 percent to $990.7 million from $1.034 billion in fiscal 2019 (52 weeks) ended February 1, 2020. Comparable sales for the fifty-two week period ended January 30, 2021 increased 13.6 percent compared to the same fifty-two week period ended February 1, 2020. Net income in fiscal 2020 increased 14.0 percent to $76.2 million, or $3.00 per diluted share, compared to the net income in the prior fiscal year of $66.9 million, or $2.62 per diluted share.

At January 30, 2021, the company had cash and current marketable securities of $375.5 million compared to cash and current marketable securities of $251.2 million at February 1, 2020. The increase in cash and current marketable securities was driven by cash generated through operations including cash deferment of $30.1 million composed of lower inventory levels, landlord payments, extended vendor terms and payroll tax payments as well as net income improvements related to abatements, credits and expense reductions. This increase was partially offset by $13.4 million of share repurchases through the company’s stock buyback program prior to our stores closing in March due to COVID-19 and other planned capital expenditures.

Rick Brooks, chief executive officer of Zumiez Inc., stated, “We are extremely proud of how our organization executed during a year of significant and unfamiliar challenges. Our one-channel approach to retail and relentless focus on serving the consumer allowed to us to achieve annual sales close to fiscal 2019 levels and record profitability despite our stores around the world being closed for approximately 22 percent of the possible operating days. Our recent performance, including during the holiday season, has strengthened our operation and financial foundation and enhanced our competitive advantages. While the near-term environment is likely to remain volatile due to the uncertainty surrounding the virus, we believe we are well-positioned with a strong balance sheet and differentiated strategies to further expand our global market share and continue generating meaningful value for our shareholders in the years ahead.”

Fiscal First Quarter-to-Date Sales
Total first quarter-to-date sales for the 35 days ended March 6, 2021 were down approximately 3.8 percent, compared with the same 35 day time period in the prior year ended March 7, 2020. Comparable sales for the 35 days ended March 6, 2021 decreased 0.4 percent. By channel, open store comparable sales decreased 6.9 percent and e-commerce sales increased 29.5 percent. During this timeframe, we had roughly 7 percent fewer open store days than last year due to governmental orders and potential safety concerns. We also experienced significant metering of traffic and reduced hours where required by local governments. We expect that the store closures and various other operating restrictions will fluctuate as we move through the quarter.

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 first quarter of the year.

Photo courtesy Zumiez