Zumiez Q4 EPS up 38% to $0.29 versus $0.21 last year

12 Mar '10

3 min read

Zumiez Inc a leading specialty retailer of action sports related apparel, footwear, equipment and accessories reported results for the fourth quarter and fiscal year ended January 30, 2010.

Total net sales for the fourth quarter ended January 30, 2010 (13 weeks) increased 5.6% to $132.4 million from $125.5 million reported in the fourth quarter ended January 31, 2009 (13 weeks). The company posted net income for the quarter of $8.8 million or $0.29 per diluted share, which includes a non-cash pre-tax charge of $1.8 million (after-tax per diluted share of $0.04) associated with the impairment of store related assets. Last year, Zumiez reported net income of $6.3 million or $0.21 per diluted share, including a non-cash pre-tax charge of $0.8 million (after-tax per diluted share of $0.02) associated with the impairment of store related assets. Comparable store sales decreased 1.7% for the fourth quarter of fiscal 2009 compared to a 13.4% decrease in the fourth quarter of fiscal 2008.

Total net sales for fiscal 2009 (52 week period) decreased 0.3% to $407.6 million from $408.7 million reported in fiscal 2008 (52 week period). The company posted net income of $9.1 million or $0.30 per diluted share, including a pre-tax non-cash charge of $2.5 million (after tax per diluted share of $0.05) associated with the impairment of store related assets and pre-tax charge of $1.4 million (after tax diluted share of $0.03) associated with the proposed settlement agreement of a previously disclosed lawsuit. These results compare to net income of $17.2 million or $0.58 per diluted share in the prior year which included a pre-tax non-cash charge of $0.8 million (after-tax charge per diluted share of $0.02) associated with the impairment of store related assets. Comparable store sales decreased 10.0% in fiscal 2009 compared to a decrease of 6.5% in fiscal 2008.

At January 30, 2010, the company had cash and current marketable securities of $108.1 million compared to cash and current marketable securities of $78.6 million at January 31, 2009.

"The year ended stronger than expected from both a sales and earnings standpoint," commented Rick Brooks, Chief Executive Officer of Zumiez. "Our unique merchandise assortments and compelling promotional packages resonated with consumers, driving an increase in units sold for the fourth quarter, and at the same time, our efforts to build in higher IMU's coupled with well managed inventory resulted in a significant improvement in product margins. While we are not pleased with our annual performance, we are encouraged that the steps we took to reverse the negative trends from early in the year led to improved results during the back half of 2009. We ended fiscal 2009 well capitalized, with more than $108 million in cash and current marketable securities, and will continue to invest in our business to build on our recent momentum and expand our position as the leading retail destination for theactions sports lifestyle."

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