07 Sep Zumiez’s Q2 Tops Guidance On Improved Top-Line Growth
Zumiez Inc. reported a lower-than-expected loss in the second quarter with the help of a rebound in same-store sales.
Total net sales for the second quarter ended July 29, 2017 (13 weeks) increased 7.8 percent to $192.2 million from $178.3 million in the quarter ended July 30, 2016 (13 weeks). Comparable sales for the thirteen weeks ended July 29, 2017 increased 4.7 percent compared to a comparable sales decrease of 4.9 percent for the thirteen weeks ended July 30, 2016. Net loss for the second quarter of fiscal 2017 was $0.6 million, or 2 cents per diluted share, compared to a net loss of $0.8 million, or 3 cents per diluted share in the second quarter of the prior fiscal year.
Previously, Zumiez said it expected sales for the second quarter to be in the range of $185 million to $189 million resulting in net loss per diluted share of approximately 6 cents to 11 cents. Same-store sales were expected to show an increase in the 1 percent to 3 percent range.
Total net sales for the six months (26 weeks) ended July 29, 2017 increased 6.3 percent to $373.4 million from $351.2 million reported for the six months (26 weeks) ended July 30, 2016. Comparable sales increased 3.3 percent for the twenty-six weeks ended July 29, 2017 compared to a comparable sales decrease of 6.2 percent for the twenty-six weeks ended July 30, 2016. Net loss for the first six months of fiscal 2017 was $5.1 million, or 21 cents per diluted share, compared to a net loss for the first six months of the prior fiscal year of $3 million, or 12 cents per diluted share.
At July 29, 2017, the company had cash and current marketable securities of $70.7 million compared to cash and current marketable securities of $52.3 million at July 30, 2016. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures and cash used in the acquisition of Fast Times.
Rick Brooks, chief executive officer of Zumiez Inc., stated, “Our business outperformed our expectations during the second quarter highlighted by a 4.7 percent comparable sales increase. I am extremely pleased with how well our teams continue to execute in the current environment. Our intense focus on serving our consumer with differentiated assortments and great service is fueling market share gains and strengthening our leadership position in the industry. We will continue to invest in our people and omni-channel capabilities while tightly controlling expenses as we look to consistently drive profitable growth and increased shareholder value over the long-term.”
August 2017 Sales
Total net sales for the four-week period ended August 26, 2017 increased 10.1 percent to $98.6 million, compared to $89.5 million for the four-week period ended August 27, 2016. The company’s comparable sales increased 7.4 percent for the four-week period ended August 26, 2017 compared to a comparable sales decrease of 1.1 percent for the four-week period ended August 27, 2016.
Fiscal 2017 Third Quarter Outlook
The company is introducing guidance for the three months ending October 28, 2017. Net sales are projected to be in the range of $236 million to $241 million resulting in net income per diluted share of approximately 43 to 48 cents a share. This guidance is based upon anticipated comparable sales growth between 4 percent and 6 percent for the third quarter of fiscal 2017. The company currently intends to open approximately 18 new stores in fiscal 2017, including up to 3 stores in Canada and 4 stores in Europe and 2 stores in Australia.