Zumiez first quarter income drops 12.5%

US: Zumiez first quarter income drops 12.5%

By just-style.com | 23 May 2008

US mall-based retailer Zumiez posted a 12.5% fall in first quarter net income to US$1.4m, but believes its unique positioning will help it beat the challenging retail environment.

Its total net sales for the first quarter increased by 14.4% to $78.7m, but store sales decreased 0.8% for the period.

Rick Brooks, president and chief executive officer of Zumiez, said: "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 energised 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 capitalising on the many growth opportunities ahead."

The company reiterated its earnings per share guidance of $0.90 to $0.93 for fiscal 2008, based on square footage growth of 20% and on flat to low-single digit increases in same-store sales.

Sectors: Apparel, Retail

Companies: Zumiez