Zumiez 4Q profit rises 22 percent on better sales

Zumiez 4th-quarter net income rises as sales grew 22 percent on sales in Europe and new stores

Associated Press

LYNWOOD, Wash. (AP) -- Zumiez Inc. said Thursday its net income climbed 22 percent in the fiscal fourth quarter as its sales picked up.

The company sells sports clothing, footwear, equipment and accessories. Zumiez said its revenue grew 22 percent over the three months ended Feb. 2 even though sales at locations open at least a year — a key measurement of retailer performance — decreased.

Zumiez said its net income rose to $22.9 million, or 74 cents per share, from $18.7 million, or 60 cents per share. Revenue increased to $224.4 million from $183.9 million.

Analysts were expecting net income of 73 cents per share and $223.5 million in revenue, according to FactSet.

Sales at stores open at least a year fell 1 percent. Those sales are considered an important indicator of retailer health because they leave out results from stores that have opened or closed in the last year. Zumiez had 501 stores as of March 2, with 472 in the U.S., 21 in Canada, and eight in Europe. It plans to open about 60 new stores in the current fiscal year

The company had 434 stores at the start of its last fiscal year. It expanded in to Europe in 2012 when it bought Blue Tomato, a sports retailer that does most of its business online.

Zumiez said its net income rose 13 percent in 2012, to $42.2 million, or $1.35 per share, from $37.4 million, or $1.20 per share. Revenue increased 20 percent, to $669.4 million from $555.9 million.

The company is forecasting net income of 4 to 7 cents per share in the fiscal first quarter. That includes 4 cents per share in charges associated with the company's acquisition of Blue Tomato. Zumiez expects to report $141 million to $144 million in sales.

Analysts were expecting net income of 13 cents per share on $144.9 million in revenue on average.

Shares of Zumiez fell 37 cents, or 1.5 percent, to $23.85 in aftermarket trading after the earnings report came out.

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