Zumiez Earnings: Increased Profit Helps Beat the Street
Zumiez Inc. (NASDAQ:ZUMZ) reported net income above Wall Street’s expectations for the first quarter. Zumiez is a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories.
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Zumiez Earnings Cheat Sheet for the First Quarter
Results: Net income for Zumiez Inc. rose to $4.5 million (14 cents per share) vs. $1.9 million (6 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.
Revenue: Rose 22.7% to $129.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Zumiez Inc. beat the mean analyst estimate of 11 cents per share. Analysts were expecting revenue of $128.6 million.
Quoting Management: Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are pleased to start the year off with such strong performance. While the first quarter represents only a small percentage of our annual sales and earnings, theses results are further validation that our strategies to profitably grow the business are working. Our teams are energized and focused on carrying our current momentum into summer and positioning the Company for a successful back half of the year.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.5%, with the biggest boost coming in the most recent quarter when revenue rose 22.7% from the year earlier quarter.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the fourth quarter of the last fiscal year, by 4 cents in the third quarter of the last fiscal year, and by 3 cents in the second quarter of the last fiscal year.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 9 cents a share to 10 cents over the last sixty days. Over the past three months, the average estimate for the fiscal year has climbed from $1.38 per to share to $1.51.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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