Zumiez Inc. Earnings: Revenue Strengthens for Fifth Straight Quarter by Double Digits

The Cheat Sheet

Zumiez Inc. reported its results for the fourth quarter. Zumiez is a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories.

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Zumiez Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Zumiez Inc. rose to $18.7 million (60 cents per share) vs. $15 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 24.9% from the year-earlier quarter.

Revenue: Rose 17.7% to $183.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zumiez Inc. beat the mean analyst estimate of 59 cents per share. Analysts were expecting revenue of $182.5 million.

Quoting Management: Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are extremely pleased with our fiscal fourth quarter and full year results. This quarter’s performance demonstrated a continuation of the strength we have seen throughout the year driven by consistently well executed merchandising, passionate employees providing a unique in-store experience, new store openings, and ecommerce strategies. Our recent performance also highlights the power of our business model as a high single digit comp and the addition of 45 productive new stores over the past year fueled a 300 basis point improvement in operating margin and generated more than $68 million in operating cash flow. With a highly differentiated mall-based concept that has significant unit expansion opportunities, a fast growing ecommerce business, and the ability to leverage our infrastructure, we believe the Company is well positioned to deliver sustainable sales and earnings growth over the near and long-term.”

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 16.5%, with the biggest boost coming in the first quarter when revenue rose 18.8% from the year earlier quarter.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 4 cents in the third quarter, by 3 cents in the second quarter, and by 4 cents in the first quarter.

Looking Forward: The outlook for the company’s next-quarter results is favorable. The average estimate for the first quarter of the next fiscal year has reached 8 cents, up from 7 cents seven days ago. The average estimate for the fiscal year is $1.19 per share, a rise from $1.14 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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