Zumiez Inc. (ZUMZ), a mall-based specialty retailer of action-sports related apparel, footwear, equipment, and accessories, reported fiscal 2009 fourth-quarter earnings of $8.8 million or $0.29 per share, compared to net income of $6.3 million or $0.21 per share in the year-earlier quarter.
For fiscal 2009, the company reported net income of $9.1 million or $0.30 per share, compared to $17.2 million or $0.58 per share in the previous fiscal year.
Total net sales during the quarter increased 5.6% to $132.4 million, compared to $125.5 million in the year-ago period. Zumiez’s comparable store sales, however, decreased 1.7% during the quarter versus a comparable store sales decrease of 13.4% a year ago.
For fiscal 2009, total net sales decreased 0.3% year-over-year to $407.6 million, while comparable store sales decreased 10.0%. The sluggish performance was primarily attributable to the continued macroeconomic headwinds, which has affected disposable income, compelling customers to slash discretionary spending, such as that on apparel, footwear and accessories.
Zumiez’s gross profit increased to $48.1 million during the quarter from $40.6 million in the year-ago period, while gross margin increased to 36.3% from 32.4%. For fiscal 2009, both gross profit and gross margin increased marginally to $134.7 million and 33.1%, respectively, compared to $134.5 million and 32.9% in the previous fiscal year.
Selling, general and administrative expenses increased 10.0% year-over-year to $35.1 million during the quarter, mainly due to higher promotional costs. However, the increase in net sales more than offset the increase in operating expenses. Consequently, Zumiez reported an operating income of $13.0 million during the quarter, compared to $8.7 million in the year-ago period.
For fiscal 2009, selling, general and administrative expenses were $122.0 million, compared to $109.9 million in fiscal 2008. With relatively flat sales during fiscal 2009, operating income reduced to $12.7 million from $24.6 million in the previous fiscal year. At fiscal year-end 2009, Zumiez had cash and current marketable securities of $108.1 million versus $78.6 million in the year-ago period.
Moving ahead, Zumiez predicts a fiscal 2010 first quarter loss in the range of $0.09 to $0.11 per share. The company anticipates opening approximately 25 new stores in fiscal 2010.
Read the full analyst report on “ZUMZ”
Zacks Investment Research