Zumiez CEO pleased with the top-line growth
Zumiez Inc., a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, reported results for the second quarter ended July 31, 2010.
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 $0.02 per diluted share, associated with the relocation of the Company's distribution center from Everett, Washington to Corona, California.
The company reported a net loss of $3.1 million or ($0.10) per diluted share in the second quarter of the prior fiscal year which included a charge of $1.3 million, or approximately $0.03 per diluted share, associated with the settlement agreement of a previously disclosed lawsuit.
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 ($0.06) 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 ($0.16) per diluted share.
Results for the first six months of fiscal 2010 include costs of $2.2 million, or approximately $0.05 per diluted share, associated with the relocation of the Company's distribution center. Results for the first six months of fiscal 2009 include a charge of $1.3 million, or approximately $0.03 per diluted share, associated with the aforementioned lawsuit. Comparable store sales increased 9.2% in the first six months of fiscal 2010 vs. a decrease of 17.2% for the first six months of 2009.
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."
The Company is introducing guidance for the three months ending October 30, 2010 of net income per diluted share of approximately $0.21 to $0.24. This guidance is based on an anticipated comparable store sales increase in the mid single digit range for the third quarter of fiscal 2010.
We currently intend to open 27 new stores in fiscal 2010 with an opening cadence similar to fiscal 2009.
Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. As of July 31, 2010 we operated 393 stores, which are primarily located in shopping malls, and our web site.