Zumiez Q4 Profit Up 22%, But Q1 Forecast Disappoints

Zumiez glamour-kills-hoodies-600x360Lynwood, WA—Zumiez reported last week that its fourth quarter profit jumped 22% ahead of Wall Street’s estimates. However, the board sport apparel and accessories retailer said its first quarter sales were tepid and therefore gave a conservative first quarter forecast.

For the quarter ended Feb. 2, Zumiez posted late Thursday afternoon net income of $22.9 million, or 74 cents a share, compared to $18.7 million, or 60 cents a year, a year ago.

Net revenue rose 22% to $224.4 million from $183.9 million. Comparable store sales edged down 1%.

Still, the figures beat analysts’ average estimate for a per-share profit of 73 cents and $223.4 million in sales.

For all of 2012, Zumiez posted a 13% increase in profit to $42.2 million, or $1.35 a share, Net sales increased 20% to $669.4 million. Zumiez’s financial performance reflects the acquisition of European teen retailer Blue Tomato during fiscal 2012.

Looking forward to the first quarter, the company forecast net sales of $141 million to $144 million and earnings of 4 cents to 7 cents a share, which includes an estimated about 4 cents a for charges associated with the acquisition of Blue Tomato.

In a conference call with analysts, Rick Brooks, chief executive, said the company got off to a slow first quarter start with comp store sales down 9% in February. Comparable store sales are expected to decline in the mid-single digit range.

That disappointed analysts who expect the company to earn 13 cents a share on sales of $144.91 million in the first quarter.

Zumiez, which currently had 501 stores, plans to open 60 new stores in the current fiscal year.

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com