Zumiez Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Revenue Growth

Zumiez Inc. (NASDAQ:ZUMZ) reported net income above Wall Street’s expectations for the third quarter. Zumiez is a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Zumiez Earnings Cheat Sheet for the Third Quarter

Results: Net income for Zumiez Inc. rose to $14.1 million (45 cents per share) vs. $12.3 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 14.8% from the year earlier quarter.

Revenue: Rose 13.3% to $154 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ZUMZ beat the mean analyst estimate of 41 cents per share. Analysts were expecting revenue of $153.1 million.

Quoting Management: Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our merchandise, new store opening, and ecommerce strategies once again allowed us to deliver on our goal of consistent sales and earnings growth. During the third quarter we continued to execute on key initiatives aimed at driving productivity, expanding our geographic footprint, and bringing our unique in-store experience to the internet. We are pleased with the current pace of growth for our business and believe our product assortment has us well positioned for the remainder of the holiday selling period.”

Key Stats:

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%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 20% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 4 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the fourth quarter have not changed from 52 cents. The average estimate for the fiscal year has seen a bump from $1.06 per share sixty days ago to $1.08.

Competitors to Watch: Pacific Sunwear of California, Inc. (NASDAQ:PSUN), Aeropostale, Inc. (NYSE:ARO), American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch Co. (NYSE:ANF), Urban Outfitters, Inc. (NASDAQ:URBN), The Buckle, Inc. (NYSE:BKE), The Wet Seal, Inc. (NASDAQ:WTSLA), Hot Topic, Inc. (NASDAQ:HOTT), Jos. A. Bank Clothiers, Inc. (NASDAQ:JOSB), and The Men’s Wearhouse, Inc. (NYSE:MW).

Stock Performance: Shares of ZUMZ were down 0.7% from the previous close.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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