Zumiez Q3 Net Up But Shy of Forecast
NEW YORK – Zumiez Inc. enjoyed a double-digit increase in third-quarter profits, but still fell short of analysts’ aggressive estimates.
In the three months ended Oct. 28, the fast-growing active sports chain had net income of $6.8 million, or 24 cents a diluted share, 29.3% ahead of the year-ago profit of $5.3 million, or 18 cents, but 3 cents behind the Thomson Financial Network consensus estimate of 27 cents.
Sales were up 43.3%, to $82.3 million from $57.4 million, and comparable-store sales finished 10.7% ahead.
The Everett, Wash.-based concern opened 12 stores during the quarter and expects a total of 42 new units by the end of its fiscal year. It operated 233 stores, including the 19 Fast Forward stores acquired during the second quarter.
Rick Brooks, president and chief executive, said the company was in the “early stages” of its growth and “can eventually operate 800 stores in the U.S.”
Plans are to open 50 stores in 2007, which would bring its unit count to more than 300.
Brooks said the long-term goal is to expand square footage between 20% and 25% a year.
For the year to date, net income rose 57.4% to $9.6 million, or 33 cents a diluted share, from $6.1 million, or 23 cents. Net sales were up 42.7% to $185.8 million, from $130.2 million, and same-store results ascended 10.8%.
