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By
Reuters
Published
May 21, 2012
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Zumiez profit beats estimates on better margins

By
Reuters
Published
May 21, 2012

Teen-focused retailer Zumiez Inc posted a better-than-expected quarterly profit on improved margins but forecast second quarter earnings below estimates.


Photo: Zumiez


The surfing and snowboarding merchandise retailer, which began with a single store location in 1978, has been increasing its sales with consistent store openings and simultaneously growing its e-commerce platform.

Zumiez plans to open about 50 new stores in fiscal 2012, including up to 10 stores in Canada.

First-quarter net income rose to $4.5 million, or 14 cents per share, from $1.9 million, or 6 cents per share, a year ago.

Analysts had expected earnings of 11 cents per share, according to Thomson Reuters I/B/E/S.

Sales rose 23 percent to $129.9 million.

However, the Everett, Washington-based company forecast second-quarter earnings of 4 cents to 6 cents as it expects costs of about $1.8 million, or 3 cents per share, related to the relocation of its corporate offices and ecommerce fulfillment center.

Shares of the company closed at $35.16 on Thursday on the Nasdaq. They have gained 61 percent in the last six months.

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