Sports clothing retailer Zumiez Q1 net sales rise

May 23, 2008 (USA)

Zumiez Inc reported results for the first quarter ended May 3, 2008.

Total net sales for the first quarter (13 weeks) ended May 3, 2008 increased by 14.4% to $78.7 million from $68.8 million reported in the first quarter ended May 5, 2007 (13 weeks). The company posted net income for the quarter of $1.4 million or $0.05 per diluted share versus $1.6 million or $0.06 per diluted share in the first quarter of the prior fiscal year. Comparable store sales decreased 0.8% for the first quarter of fiscal 2008 compared to an 11.3% increase in the first quarter of fiscal 2007.

Rick Brooks, President and Chief Executive Officer of Zumiez Inc, stated, "While the retail environment remains challenging, we continue to concentrate our efforts in the areas we can best impact, including driving sales dollars per transaction, controlling expenses, carefully managing inventories and ensuring that our team remains energized and focused.

We believe Zumiez competitive advantage has always been its unique positioning in the mall, its broad merchandise selection and ability to attract the best talent in the industry. We remain committed to successfully executing our strategic plan and fully capitalizing on the many growth opportunities ahead."

2008 Outlook:
The company reiterated its diluted earnings per share guidance of approximately $0.90 to $0.93 for fiscal 2008. This guidance is based on anticipated square footage growth of approximately 20% and on flat to low-single digit increases in comparable store sales. Weighted average diluted shares for the fiscal year are expected to be approximately 29,700,000.

In putting forth this outlook, the company reminds investors of the complexity of accurately assessing future growth given the difficulty in predicting fashion trends and consumer preferences, boardsports popularity and participation rates, general economic conditions, weather and the impact of other business variables and risks.

Zumiez Inc