Home / Knowledge / News / Fashion / Zumiez sees significant increase in promotional activity during Q4
Zumiez sees significant increase in promotional activity during Q4
Mar '09
Zumiez Inc reported results for the fourth quarter and fiscal year ended January 31, 2009.

Total net sales for the fourth quarter (13 weeks) ended January 31, 2009 decreased 0.9% to $125.5 million from $126.6 million reported in the fourth quarter ended February 2, 2008 (13 weeks). The company posted net income for the quarter of $6.3 million or $0.21 per diluted share, including a non-cash, after-tax charge of $0.02 per diluted share associated with the impairment of store related assets, offset by a lower tax rate worth $0.02 per diluted share.

Last year, Zumiez reported net income of $12.4 million or $0.42 per diluted share. Comparable store sales decreased 13.4% for the fourth quarter of fiscal 2008 compared to a 4.0% increase in the fourth quarter of fiscal 2007.

Total net sales for fiscal 2008 (52 week period) increased 7.1% to $408.7 million from $381.4 million reported in fiscal 2007 (52 week period). The company posted net income of $17.2 million or $0.58 per diluted share versus $25.3 million or $0.86 per diluted share in the prior year. Comparable store sales decreased 6.5% in fiscal 2008 compared to an increase of 9.2% in fiscal 2007.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated: "Fiscal 2008, particularly the second half of the year, was incredibly challenging. Since September the deteriorating economic conditions have significantly dampened consumer appetite for discretionary items. As a result, we saw a significant increase in promotional activity across all of retail, especially during the third and fourth quarters.

We reacted in quick fashion and were able to manage our business in such a way to remain profitable for all four quarters of fiscal 2008. In light of the unprecedented environment, our team did an exceptional job controlling expenses, managing inventory, and most importantly, preserving the unique Zumiez concept.

We begin 2009 confident that our strong balance sheet which includes approximately $79 million in cash, cash equivalents and current marketable securities, no debt and lean inventory levels, combined with our competitive advantages will allow us to successfully manage our business through this difficult macro environment. While longer-term we believe we are well positioned to drive increased profitability and greater shareholder value once the economy improves."

2009 Outlook
It has always been our goal to openly communicate actual results as well as our forward looking guidance with investors and other constituencies. In this spirit we plan to give guidance for the quarter we are currently operating in. However, due to the current market conditions and uncertain consumer environment, particularly in the back half of the year, the Company is discontinuing the practice of providing specific annual guidance until conditions normalize and visibility improves. Our current intention is to open approximately 37 new storesin fiscal 2009 with an opening cadence similar to fiscal 2008.

The Company is introducing guidance for the three months ending May 2, 2009 of a net loss of approximately ($0.17) to ($0.13) per diluted share. This guidance is based on an anticipated comparable store sales decline in the mid to high teen range for the first quarter of fiscal 2009.

Zumiez Inc

Must ReadView All

Global lingerie market expected to reach $55 bn by 2024

Apparel/Garments | On 15th Oct 2018

Global lingerie market expected to reach $55 bn by 2024

Global lingerie market in 2015 was worth $33 billion and is expected...

Indian textiles minister assures Manipur sector support

Textiles | On 15th Oct 2018

Indian textiles minister assures Manipur sector support

Indian textiles minister Smriti Irani recently assured Manipur state...

Courtesy: Huntsman

Textiles | On 15th Oct 2018

Huntsman Textile Effects & Chemours expand alliance

Huntsman Textile Effects and Chemours are set to expand their...

Interviews View All

Amrit Sethia, SOIE

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Anavila Misra, Anavila Collection

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Sonia Agarwal, Whitenife

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

John Kelley,

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Kalai Selvi,

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search