Zumiez's Quarter 4 profits climb 22 percent
Net income in the fourth quarter increased 22.1 percent to $22.9 million
Surfersvillage Global Surf News, 15 March, 2013 : - - Zumiez Inc., the action sports retailer, reported net income in the fourth quarter increased 22.1 percent to $22.9 million, or 74 cents per diluted share from net income of $18.7 million, or 60 cents, for the prior fiscal year. Comparable store sales for the 14-week period ended Feb. 2, 2013 decreased 1.0 percent.
Total net sales for the fourth quarter ended Feb. 2 (14 weeks) increased 22.1 percent to $224.4 million from $183.9 million in the quarter ended Jan. 28. The results for fiscal 2012 include $0.9 million, or approximately $0.02 per diluted share, of intangible amortization and inventory step-up costs associated with the acquisition of Blue Tomato, and a net benefit of $0.4 million, or approximately $0.01 per diluted share, of contingent earn-out associated with the Blue Tomato transaction.
Full Year Results
Total net sales for fiscal 2012 (53 weeks) increased 20.4 percent to $669.4 million from $555.9 million in fiscal 2011 (52 weeks). Comparable store sales for the 53-week period ended February 2, 2013 increased 5.0 percent compared to the same 53-week period ended February 4, 2012. Net income in fiscal 2012 increased 12.9 percent to $42.2 million, or $1.35 per diluted share compared to net income in the prior fiscal year of $37.4 million, or $1.20 per diluted share.
Results for fiscal 2012 include approximately $7.3 million, or $0.19 per diluted share, of Blue Tomato acquisition related costs and operations, and approximately $2.1 million, or $0.04 per diluted share, of costs associated with the relocation the company's ecommerce fulfillment center to Edwardsville, Kansas and corporate offices to Lynnwood, Washington from Everett, Washington.
Share Repurchase Program
During the fourth quarter 2012, the company repurchased approximately 1.3 million shares of its common stock, at an average cost per share of $20.43, for a total of $25.8 million. As of February 2, 2012, the $22 million repurchase program announced in November 2012 had been completed and the company had $16 million authorized repurchase funds remaining under its $20 million stock repurchase program announced in December 2012.
Cash and Current Marketable Securities
At February 2, 2013, the company had cash and current marketable securities of $103.2 million, compared to cash and current marketable securities of $172.8 million at January 28, 2012. The decrease in cash and current marketable securities is a result of the acquisition of Blue Tomato, which was funded by the company's cash and current marketable securities balance, as well as capital expenditures and stock repurchases, offset by cash generated through operations.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "We are pleased with the quality of our fourth quarter results. Our ability to deliver better than expected sales and earnings underscores the strength of our business model which is rooted in a diverse branded merchandising strategy, highly differentiated shopping experience, and unique culture. It's these principles that have allowed us to consistently drive Zumiez forward. With the consumers use of technology evolving and reshaping the retail landscape we are confident that the investments we continue to make in our people, systems and processes will allow us to build on our position as the global leader in action sports retail for many years to come."
Fiscal 2013 First Quarter Outlook
The company is introducing guidance for the three months ending May 4, 2013. Net sales are projected to be in the range of $141 to $144 million resulting in net income per diluted share of approximately $0.04 to $0.07, which includes an estimated $1.6 million, or approximately $0.04 per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on an anticipated comparable store sales decrease in the mid single digit range for the first quarter of fiscal 2013.
The company currently intends to open approximately 60 new stores in fiscal 2013, including up to 10 stores in Canada and 6 stores in Europe.
Source: Board Sport Source
Author: The Editors
Tags: Surf Industry, Retail, Zumiez