Zumiez Inc. reported total net sales for the second quarter (13 weeks) ended July 31, 2010 increased 14.7% to $97.7 million from $85.2 million reported in the second quarter (13 weeks) ended August 1, 2009.
Comparable store sales for the second fiscal quarter of 2010 increased 9.3% vs. a decrease of 18.8% for the second quarter of fiscal 2009. The company posted net income for the quarter of $0.1 million or $0.00 per diluted share. These results include costs of approximately $1.0 million, or 2 cents per diluted share, associated with the relocation of the company's distribution center from Everett, Washington to Corona, California.
Total net sales for the first six months (26 weeks) ended July 31, 2010 increased 15.3% to $186.8 million from $162.0 million reported in the first six months (26 weeks) of the prior year. The company posted a net loss of $1.8 million or 6 cents per diluted share in the first six months of fiscal 2010 compared to a net loss in the first six months of the prior fiscal year of $4.7 million or 16 cents per diluted share.
At July 31, 2010, the Company had cash and current marketable securities of $91.3 million compared to cash and current marketable securities of $82.1 million at August 1, 2009.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We were very pleased with the top-line growth we generated during the second quarter and improved earnings results relative to last year, driven by comparable stores sales that were at the high-end of our guidance range. The merchandise and pricing initiatives we have implemented continue to resonate with consumers and are fueling gains across our business, including stronger than expected product margins. We are encouraged by our improved trends year-to-date, and optimistic that we have the right strategies in place to build on our positive momentum as we begin the important second half of the year.”
2010 Outlook
The company is introducing guidance for the three months ending October 30, 2010 of net income per diluted share of approximately 21 cents to 24 cents. This guidance is based on an anticipated comparable store sales increase in the mid single digit range for the third quarter of fiscal 2010.
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
——————————————
July 31, % of August 1, % of
2010 Sales 2009 Sales
——— ——— ——— ———
Net sales $ 97,702 100.0% $ 85,170 100.0%
Cost of goods sold 66,986 68.6% 60,526 71.1%
——— ——— ——— ———
Gross profit 30,716 31.4% 24,644 28.9%
Selling, general and
administrative expenses 30,959 31.7% 29,870 35.0%
——— ——— ——— ———
Operating loss (243) (0.3%) (5,226) (6.1%)
Interest income, net 352 0.4% 307 0.4%
Other income, net 47 0.0% – 0.0%
——— ——— ——— ———
Income (loss) before income
taxes 156 0.1% (4,919) (5.7%)
Provision (benefit) for income
taxes 42 0.0% (1,834) (2.1%)
——— ——— ——— ———
Net income (loss) $ 114 0.1% $ (3,085) (3.6%)
========= ========= ========= =========
Basic earnings (loss) per
share $ 0.00 $ (0.10)
========= =========
Diluted earnings (loss) per
share $ 0.00 $ (0.10)
========= =========
Weighted average shares used in
computation of earnings (loss)
per share:
Basic 29,954 29,496
Diluted 30,650 29,496
