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Rising costs hurt Zumiez Inc. (NASDAQ:ZUMZ) in the second 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 $2.1 million (7 cents per share) vs. $2.6 million (8 cents per share) a year earlier. This is a decline of 19.5% from the year-earlier quarter.
Revenue: Rose 20.4% to $135.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Zumiez Inc. reported adjusted net income of 14 cents per share. By that measure, the company beat the mean estimate of 13 cents per share. It beat the average revenue estimate of $128.6 million.
Quoting Management: Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “The second quarter was a productive and transformational period for our Company. We continued to expand our North American footprint while at the same time driving a high single digit comparable sales gain. Our teams continue to execute at a very high level to ensure that our merchandise assortments are relevant and that the shopping experience is unique and differentiated regardless of what channel consumers chose to engage with us. We also took a significant step in our long-term plan to create a global action sports business with the acquisition of Blue Tomato. With established leadership in North America and Europe, we are focused on leveraging our combined expertise to take full advantage of the many expansion opportunities that exist in each of our markets.”
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 17.8%, with the biggest boost coming in the first quarter when revenue rose 22.7% from the year earlier quarter.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.
Looking Forward: The average estimate for the third quarter is steady at 54 cents a share. For the fiscal year, the average estimate has moved up from $1.43 a share to $1.54 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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