Rising costs hurt Zumiez Inc. (NASDAQ:ZUMZ) in the third quarter as profit dropped from a year earlier. Zumiez is a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories.
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Zumiez Inc. Earnings Cheat Sheet
Results: Net income for Zumiez Inc. fell to $12.7 million (40 cents per share) vs. $14.1 million (45 cents per share) a year earlier. This is a decline of 10.4% from the year-earlier quarter.
Revenue: Rose 16.9% to $180 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Zumiez Inc. fell short of the mean analyst estimate of 47 cents per share. It beat the average revenue estimate of $128.6 million.
Quoting Management: Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our third quarter operating results reflect softer than expected sales trends in Europe and modest comparable store sales for the post back to school period. Comp trends remained challenging in November, particularly early in the month in part due to Hurricane Sandy, however we are encouraged by the more recent sales results, with positive comps over the Black Friday weekend. We believe the combination of our merchandise assortments and enhanced omni-channel capabilities, along with best in class customer service, have us well positioned to execute through the holiday season. Looking further ahead, we are confident that the key components of our long-term growth strategy will allow us to profitably expand our share of the global action sports lifestyle market and deliver increased value to our shareholders.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.2%, with the biggest boost coming in the first quarter when revenue rose 22.7% from the year earlier quarter.
The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 19.5% from the year-earlier quarter.
The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 4 cents, and in the first quarter, it was ahead by 4 cents.
Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 76 cents per share to 71 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is now $1.52 per share, down from $1.60 sixty days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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