30 Nov Zumiez’s Q3 Earnings Climb 11 Percent
Zumiez Inc. reported earnings for the third quarter ended October 28 rose 11.2 percent, reaching the high-end of guidance. Same-store sales rose 7.9 percent to top guidance.
Total net sales for the third quarter ended October 28, 2017 (13 weeks) increased 11.0 percent to $245.8 million from $221.4 million in the quarter ended October 29, 2016 (13 weeks). Comparable sales for the thirteen weeks ended October 28, 2017 increased 7.9 percent compared to a comparable sales increase of 4.0 percent for the thirteen weeks ended October 29, 2016. Net income for the third quarter of fiscal 2017 was $11.9 million, or 48 cents per diluted share, compared to net income of $10.7 million, or 43 cents per diluted share in the third quarter of the prior fiscal year.
When it reported second-quarter results, the company said it expected sales to be in the range of $236 to $241 million resulting in net income per diluted share of approximately 43 cents to 48 cents a share. This guidance was based upon anticipated comparable sales growth between 4 percent and 6 percent.
Total net sales for the nine months (39 weeks) ended October 28, 2017 increased 8.1 percent to $619.2 million from $572.6 million reported for the nine months (39 weeks) ended October 29, 2016. Comparable sales increased 5.1 percent for the thirty-nine weeks ended October 28, 2017 compared to a comparable sales decrease of 2.5 percent for the thirty-nine weeks ended October 29, 2016. Net income for the first nine months of fiscal 2017 was $6.9 million, or $0.28 per diluted share, compared to net income for the first nine months of the prior fiscal year of $7.7 million, or $0.31 per diluted share.
At October 28, 2017, the company had cash and current marketable securities of $85.8 million compared to cash and current marketable securities of $49.2 million at October 29, 2016. The increase in cash and current marketable securities was driven by cash generated through operations, partially offset by capital expenditures.
Rick Brooks, chief executive officer of Zumiez Inc., stated, “Our top-line performance continues to improve even in the face of more challenging comparisons. Third quarter comparable sales increased 7.9 percent on top of a 4.0 percent gain in the year ago period and our momentum has carried over into November. We are confident that our merchandise strategies, integrated sales channels and best in class sales team have Zumiez well positioned to deliver strong holiday results and achieve meaningful earnings growth in the fourth quarter. Looking ahead, our focus remains centered on serving the customer while profitably expanding our global market share and returning increased value to our shareholders over the long-term.”
November 2017 Sales Total net sales for the four-week period ended November 25, 2017 increased 11.3 percent to $77.1 million, compared to $69.3 million for the four-week period ended November 26, 2016. The company’s comparable sales increased 7.8 percent for the four-week period ended November 25, 2017 compared to a comparable sales increase of 5.7 percent for the four-week period ended November 26, 2016.
Fiscal 2017 Fourth Quarter Outlook
The company is introducing guidance for the three months ending February 3, 2018. Net sales are projected to be in the range of $291 to $297 million resulting in net income per diluted share of approximately $0.78 to $0.84. This guidance is based upon anticipated comparable sales growth between 3 percent and 5 percent for the fourth quarter of fiscal 2017. The company remains on track to open approximately 19 new stores in fiscal 2017, including up to 3 stores in Canada and 5 stores in Europe and 2 stores in Australia.