Zumiez Inc. Earnings: Margins Expand For Fifth Straight Quarter
Zumiez Inc. (NASDAQ:ZUMZ) swung to a profit in the first quarter and beat Wall Street’s expectations in the process. Zumiez Inc. is a mall based specialty retailer of action sports related apparel, footwear, equipment and accessories operating under the Zumiez brand name.
Zumiez Earnings Cheat Sheet for the First Quarter
Results: Swung to a profit of $1.9 million (6 cents/diluted share) in the quarter. Zumiez Inc. had a net loss of $1.9 million or a loss 6 cents per share in the year earlier quarter.
Revenue: Rose 18.8% to $105.9 million YoY.
Actual vs. Wall St. Expectations: ZUMZ beat the mean analyst estimate of 2 cents/share. Estimates ranged from a loss of one cent per share to a profit of 4 cents per share.
Quoting Management: Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our first quarter results represent a good start to fiscal 2011, although only a small percentage of our full year earnings. This gives us added confidence as we increase our store base in the U.S. and now Canada. Longer-term, we remain excited about the multiple areas of organic growth we believe exist for our concept including meaningful unit expansion, same store sales opportunities, and further development of our e-commerce platform.”
The company has enjoyed double-digit year-over-year 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 third quarter of the last fiscal year when revenue rose 20% from the year earlier quarter.
Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 2.7 percentage points to 31.6% from the year earlier quarter. Over that span, margins have grown on average 2.4 percentage points per quarter on a year-over-year basis.
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 are up 2.7% from the previous close.