Free Research Report as Zumiez's Net Sales Advanced 13.9% and Net Loss Narrowed

LONDON, UK / ACCESSWIRE / July 9, 2018 / If you want access to our free earnings report on Zumiez Inc. (NASDAQ: ZUMZ), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ZUMZ. The Company reported its first quarter fiscal 2018 operating and financial results on June 07, 2018. The leading specialty retailer of apparel, footwear, equipment, and accessories for young men and women outperformed top- and bottom-line expectations. Additionally, the Company provided its guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Zumiez most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the thirteen weeks ended May 05, 2018, Zumiez's total net sales jumped 13.9% to $206.3 million from $181.2 million in the quarter ended April 29, 2017, with the growth fueled by a positive comparable sales growth of 8.3% and the net addition of 12 stores since the end of the year ago same period. The Company's revenue numbers surpassed analysts' estimates of $199.0 million.

During Q1 FY18, Zumiez recorded a gross profit of $62.6 million, reflecting an increase of 20.2% on a y-o-y basis. The Company's gross margin was 30.3% in the reported quarter, an increase of 160 basis points (bps) versus 28.7% in the year earlier comparable quarter, primarily driven by a 160 bps of leverage in the Company's store occupancy costs.

For Q1 FY18, Zumiez's selling, general, and administrative expenses (SG&A) were $64.3 million compared to $58.3 million in Q1 FY17. The Company's SG&A as a percentage of net sales was 31.1% in the reported quarter compared to 32.2% in the prior year's corresponding quarter. The 110-bps drop was primarily driven by a 160-bps leverage on the Company's store operating costs, partially offset by a 30-bps increase in corporate costs and a 30-bps increase due to the timing of Zumiez's annual training events.

Zumiez posted an operating loss of $1.7 million, or negative 0.8% of net sales, representing an improvement of 72.6% compared to an operating loss of $6.2 million, or negative 3.5% of net sales, for Q1 FY17.

During Q1 FY18, Zumiez recorded a net loss of $2.6 million, or $0.10 loss per diluted share, compared to a net loss of $4.4 million, or $0.18 loss per diluted share, in Q1 FY17. The Company's earnings numbers were better than Wall Street's estimates for a loss of $0.12 per share.

Cash Matters

At May 05, 2018, Zumiez's cash and current marketable securities increased 54.2% to $118.0 million compared to $76.5 million at April 29, 2017. This increase was primarily driven by $57 million in cash flow from operations, partially offset by $20.5 million of capital expenditure primarily related to new store growth and remodels.

May 2018 Sales

Zumiez's total net sales increased 12.2% to $59.7 million for the four-week period ended June 02, 2018, compared to $53.2 million for the four-week period ended May 27, 2017. The Company's comparable sales increased 7.5% in the reported period compared to a comparable sales increase of 3.3% in the year ago same period.

Outlook

For the three months ended August 04, 2018, Zumiez is forecasting net sales to be in the range of $213 million to $217 million, including anticipated comparable sales growth of between 3.0% and 5.0%. The Company's consolidated operating margins are expected to be between 1.2% and 2.0%, resulting in a net income per share of approximately $0.04 to $0.09.

Zumiez is planning to open approximately 13 new stores in FY18, including up to 6 stores in the United States, 5 stores in Europe, and 2 stores in Australia.

Stock Performance Snapshot

July 06, 2018 - At Friday's closing bell, Zumiez's stock declined 2.67%, ending the trading session at $23.65.

Volume traded for the day: 709.84 thousand shares, which was above the 3-month average volume of 462.35 thousand shares.

Stock performance in the previous six-month period – up 3.05%; past twelve-month period – up 91.50%; and year-to-date – up 13.57%

After last Friday's close, Zumiez's market cap was at $631.69 million.

Price to Earnings (P/E) ratio was at 20.95.

The stock is part of the Services sector, categorized under the Specialty Retail, Other industry. This sector was up 1.0% at the end of the session.

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