Q3 net sales decline 4.2 percent at Zumiez

Total net sales for the third quarter ended October 31, 2015 at Zumiez decreased 4.2 percent to 204.3 million dollars from 213.3 million dollars in the quarter ended November 1, 2014. Comparable sales decreased 7.3 percent compared with a comparable sales increase of 3.7 percent for the same quarter, last year.

Commenting on the results, Rick Brooks, Chief Executive Officer of Zumiez said, “We've moved quickly to reduce expenses to protect profitability in the face of challenging sales trends, which helped us exceed our bottom line guidance for the third quarter. With the fourth quarter off to a slow start combined with tougher sales comparisons ahead, we believe it's prudent to maintain a cautious outlook for the remainder of fiscal 2015.”

Q3 and nine months result highlights

Net income in the third quarter decreased to 9.7 million dollars, or 0.36 dollar per diluted share, compared to net income of 15.7 million dollars, or 0.54 dollar per diluted share in the third quarter of the prior fiscal year. The results for fiscal 2014 include costs of 0.6 million dollars, or 0.02 dollar for charges associated with the acquisition of Blue Tomato.

Total net sales for the nine months ended October 31, 2015 increased 1.6 percent to 561.7 million dollars from 553 million dollars reported for the nine months ended November 1, 2014. Comparable sales decreased 3.4 percent compared with a comparable sales increase of 3 percent for the same period, last fiscal. Net income decreased to 15.6 million dollars, or 0.55 dollar per diluted share.

November sales and Q4 outlook

Total net sales for the four-week period ended November 28, 2015 decreased 10.6 percent to 62.8 million dollars, compared to 70.3 million dollars for the four-week period ended November 29, 2014. The company's comparable sales decreased 13.8 percent compared with a comparable sales increase of 6.3 percent for the period ended November 29, 2014.

The company for the three months ending January 30, 2016 expects net sales to be in the range 226 dollars to 231 million dollars resulting in net income per diluted share of approximately 0.40 dollar to 0.46 dollar. This guidance is based on an anticipated comparable sales decrease in the 14 percent to 16 percent range for the fourth quarter of fiscal 2015.