Zumiez Q4 Profit Up 22%, But Q1 Forecast Disappoints

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

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.