Zumiez Inc. reported net income in the fourth quarter of fiscal 2011 increased 24.9 percent
to $18.7 million, or 60 cents per share, from $15.0
million, or 49 cents, in the fourth quarter of the prior
fiscal year. Total sales increased 17.7 percent to $183.9 million from $156.2 million a year ago. Comparable store sales increased 9.7 percent on top of a comparable store sales increase of 13.0 percent in the fourth quarter of fiscal 2010.
Total net sales for fiscal 2011 (52 weeks) increased 16.1 percent to $555.9 million from $478.8 million in fiscal 2010 (52 weeks). Comparable store sales increased 8.7 percent in fiscal 2011 on top of a comparable store sales increase of 11.9 percent in fiscal 2010. Net income in fiscal 2011 increased 54.3 percent to $37.4 million, or $1.20 per diluted share compared to net income in the prior fiscal year of $24.2 million, or $0.79 per diluted share. Results for fiscal 2010 include costs of $2.4 million, or approximately $0.05 per diluted share, associated with the relocation of the company's distribution center, and $2.1 million, or approximately $0.04 per diluted share, for the settlement of a previously disclosed lawsuit.
At January 28, 2012, the company had cash and current marketable securities of $172.8 million, an increase of 34.2 percent compared to cash and current marketable securities of $128.8 million at January 29, 2011.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are extremely pleased with our fiscal fourth quarter and full year results. This quarter's performance demonstrated a continuation of the strength we have seen throughout the year driven by consistently well executed merchandising, passionate employees providing a unique in-store experience, new store openings, and ecommerce strategies. Our recent performance also highlights the power of our business model as a high single digit comp and the addition of 45 productive new stores over the past year fueled a 300 basis point improvement in operating margin and generated more than $68 million in operating cash flow. With a highly differentiated mall-based concept that has significant unit expansion opportunities, a fast growing ecommerce business, and the ability to leverage our infrastructure, we believe the company is well positioned to deliver sustainable sales and earnings growth over the near and long-term.”
Fiscal 2012 First Quarter Outlook
The company is introducing guidance for the three months ending April 28, 2012. Net sales are projected to be in the range of $123 to $125 million and resulting in net income per diluted share of approximately $0.06 to $0.08, which includes an estimated $0.4 million, or approximately $0.01 per diluted share, for charges associated with the relocation of ecommerce fulfillment operations to Edwardsville, KS. This guidance is based on an anticipated comparable store sales increase in the high single digit range for the first quarter of fiscal 2012.
ZUMIEZ INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
-------------------------------------------
January 28, % of January 29, % of
2012 Sales 2011 Sales
------------ ------ ------------ ------
Net sales $ 183,859 100.0% $ 156,192 100.0%
Cost of goods sold 112,356 61.1% 96,299 61.7%
------------ ------ ------------ ------
Gross profit 71,503 38.9% 59,893 38.3%
Selling, general and
administrative expenses 40,190 21.9% 35,879 22.9%
------------ ------ ------------ ------
Operating profit 31,313 17.0% 24,014 15.4%
Interest income, net 449 0.2% 409 0.3%
Other expense, net (308) (0.1%) (111) (0.1%)
------------ ------ ------------ ------
Earnings before income taxes 31,454 17.1% 24,312 15.6%
Provision for income taxes 12,717 6.9% 9,307 6.0%
------------ ------ ------------ ------
Net income $ 18,737 10.2% $ 15,005 9.6%
============ ====== ============ ======
Basic earnings per share $ 0.61 $ 0.50
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Diluted earnings per share $ 0.60 $ 0.49
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Weighted average shares used
in computation of earnings
per share:
Basic 30,646 30,160
Diluted 31,211 30,927
The company currently intends to open approximately 50 new stores in fiscal 2012, including up to 10 stores in Canada, with an opening cadence similar to fiscal 2011.
