Zumiez Inc. reported total net sales for the fourth quarter ended January 28, 2017 increased 8.7 percent to $263.6 million from $242.4 million in the quarter ended January 30, 2016.
Comparable sales for the 13-week period ended January 28, 2017 increased 5.1 percent compared to a 9.5 percent decrease for the 13-week period ended January 30, 2016.
Net income in the fourth quarter of fiscal 2016 increased 38.3 percent to $18.2 million, or $0.74 per diluted share, from net income of $13.1 million, or $0.50 per diluted share, in the fourth quarter of fiscal 2015. The results for fiscal 2015 include charges of $1.2 million, or approximately $0.03 per diluted share for exit costs associated with the shutdown of the company’s fulfillment facility in Edwardsville, KS.
Total net sales for fiscal 2016 (52 weeks) increased 4.0 percent to $836.3 million from $804.2 million in fiscal 2015 (52 weeks). Comparable sales for the 52-week period ended January 28, 2017 decreased 0.2 percent compared to a 5.3 percent decrease for the 52-week period ended January 30, 2016. Net income in fiscal 2016 decreased 10.0 percent to $25.9 million, or $1.04 per diluted share compared to net income in the prior fiscal year of $28.8 million, or $1.04 per diluted share. Results for the fiscal year 2015 include approximately $1.5 million, or $0.04 per diluted share, for charges associated with the acquisition of Blue Tomato, and $1.2 million, or approximately $0.03 per diluted share for exit costs associated with the shutdown of the company’s fulfillment facility in Edwardsville, KS.
Cash and Current Marketable Securities
At January 28, 2017, the company had cash and current marketable securities of $78.8 million, compared to cash and current marketable securities of $75.6 million at January 30, 2016. The increase in cash and current marketable securities was driven by cash generated through operations of $48.5 million partially offset by stock repurchases of $21.6 million and capital expenditures of $20.4 million.
Rick Brooks, chief executive officer of Zumiez Inc., stated, “Our fourth quarter earnings performance exceeded expectations driven by efficiencies realized as we continued to execute on our omni-channel and localization efforts combined with a more favorable tax rate. The investments we’ve made in our merchandise offering, sales teams and omnichannel capabilities generated solid top-line momentum during the holiday season and continue to further distinguish Zumiez, Blue Tomato and Fast Times from the competition. We are pleased with our finish to the year especially in light of the headwinds facing the retail industry. Looking ahead, our primary focus remains on executing the strategic multi-year growth objectives that we believe will deliver increased profitability and greater shareholder value over the long-term. We believe that it is this focus that will allow us to successfully navigate through the current environment, including the impact that certain events are having on our monthly sales cadence in early 2017.”
February 2017 Sales
Total net sales for the four-week period ended February 25, 2017 decreased 0.8 percent to $51.5 million, compared to $51.9 million for the four-week period ended February 27, 2016. The company’s comparable sales decreased 3.1 percent for the four-week period ended February 25, 2017 compared with a comparable sales decrease of 8.6 percent for the four-week period ended February 27, 2016.
Fiscal 2017 First Quarter Outlook
The company is introducing guidance for the three months ending April 29, 2017. Net sales are projected to be in the range of $178 million to $182 million resulting in a net loss per share of approximately -$0.17 to -$0.21. This guidance is based upon anticipated comparable sales growth of between 0 percent and positive 2 percent for the first quarter of fiscal 2017 compared to the prior year. The company currently intends to open approximately 18 new stores in fiscal 2017, including up to 3 stores in Canada, 4 stores in Europe and 2 stores in Australia.
Photo courtesy Zumiez