Zumiez reports Q2 loss of 0.03 dollars

Total net sales at Zumiez, for the second quarter ended July 30, 2016 decreased 0.9 percent to 178.3 million dollars from 179.8 million dollars in the quarter ended August 1, 2015. Comparable sales decreased 4.9 percent compared to 4.5 percent decrease for the same period ended August 1, 2015. Net loss was 0.8 million dollars or 0.03 dollar per diluted share, compared to net income of 3.2 million dollars or 0.11 dollar per diluted share in the second quarter of the prior fiscal year.

Commenting on the results, Rick Brooks, CEO of Zumiez said, "While our monthly comparable sales improved as the quarter progressed led by solid gains in our men's category, our overall business continues to underperform versus our long-term expectations. We are confident that we are making the right decisions that will allow us to best serve our customers and expand our global market share while delivering sustained growth and increased shareholder value well into the future.”

H1 net sales decreased 1.7 percent

Total net sales for the six months ended July 30, 2016 decreased 1.7 percent to 351.2 million dollars from 357.4 million dollars reported for the six months ended August 1, 2015. Comparable sales decreased 6.2 percent compared to a decrease of 0.9 percent for the twenty-six weeks ended August 1, 2015. Net loss was 3 million dollars or 0.12 dollar per diluted share, compared to net income of 6 million dollars or 0.21 dollar per diluted share.

Meanwhile, Zumiez has also announced that on August 31, 2016, the company acquired 100 percent of the outstanding stock of Fast Times Skateboarding for 6.9 million dollars. Founded in 2008, Fast Times is an Australian specialty retailer of skateboards, hardware, apparel and footwear and currently operates five stores and an online web platform.

“Fast Times is an important component of the Zumiez global retail network and joins our existing operations in the United States, Canada, and Europe. Our intent is to help the Fast Times team grow their operations across Australia leveraging our proven skills in profitably scaling culture and brand,” added Brooks.

August 2016 sales and Q3 outlook

Total net sales for the four-week period ended August 27, 2016 increased 2.6 percent to 89.5 million dollars compared to 87.3 million dollars for the four-week period ended August 29, 2015. The company's comparable sales decreased 1.1 percent compared to a comparable sales decrease of 10.7 percent for the four-week period ended August 29, 2015.

The company is introducing guidance for the three months ending October 29, 2016. Net sales are projected to be in the range of 209 dollars to 213 million dollars resulting in net income per diluted share of approximately 0.21 dollar to 0.26 dollar. This guidance is based upon an anticipated comparable sales range of negative 2 percent to 0 percent for the quarter. The Company currently intends to open approximately 29 new stores in fiscal 2016, including up to six stores in Canada and seven stores in Europe.

Picture:Zumiez