DJ Zumiez Fourth-Quarter Net Up 22% on Growing Overall Sales
4:23 PM Eastern Daylight Time Mar 14, 2013
Zumiez Inc.'s (ZUMZ) fiscal fourth-quarter earnings rose 22% as the teen apparel retailer's continued sales growth overall overshadowed weakness in same-store sales and margins.
Shares sank 0.9% after hours, to $24.00, as the company forecast downbeat results for its current quarter. As of Thursday's close, the stock was up 26% over the past three months.
For its first quarter, the company predicted earnings of four cents to seven cents a share, including acquisition-related charges of four cents a share, and total sales of $141 million to $144 million. Analysts polled by Thomson Reuters most recently expected 13 cents and $145 million, respectively. Same-store sales are expected to drop in the mid-single digit range.
Zumiez, which sells apparel designed for action sports such as snowboarding and skateboarding, has continued to see revenue growth in recent years. The company has been expanding through store openings and its July acquisition of Blue Tomato, a European action sports retailer based in Austria.
For the quarter ended Feb. 2, Zumiez reported a profit of $22.9 million, or 74 cents a share, up from $18.7 million, or 60 cents a share, a year earlier. Revenue jumped 22% to $224.4 million.
Zumiez had expected earnings of 65 cents to 66 cents on revenue of $218 million to $221 million.
Gross margins narrowed to 38.2% from 38.9%.