• Q3 earnings up 32.6%
  • Sales grow 11.6%
  • Comparable sales up 3.7%
Zumiez says it is optimistic about its growth prospects

Zumiez says it is optimistic about its growth prospects

Action sportswear and footwear retailer Zumiez delivered double-digit earnings growth in its third-quarter driven by higher than expected sales and lower than planned operating expenses.

In the three months ended 2 November, earnings increased 32.6% to US$15.7m from $11.9m a year earlier.

Total sales increased 11.6% to $213.3m from $191.1m in the prior year quarter, while comparable sales were up 3.7%.

The results included costs of around $0.6m associated with the acquisition of Blue Tomato, and $1.3m for the settlement of a previously disclosed California class action wage and hour lawsuit.

CEO Rick Brooks, said: "The merchandising, selling and marketing strategies we've implemented across our global platform are resonating with consumers and strengthening our brand position as a leading lifestyle retailer. We are optimistic about our growth prospects this holiday season and more importantly over the long-term."

The company offered guidance for the fourth quarter of net sales in the range $249m to $251m, resulting in net income per diluted share of around $0.69 to $0.72. This is based on an anticipated comparable sales increase in the 3% to 4% range.

Roth Capital Markets analyst Dave King, noted: "Zumiez appears to be still gaining market share in what we believe is an improving teen retail environment. We continue to like Zumiez for its differentiated business model, consistent strategy, strong free cash flow, proven management, and underappreciated international growth opportunity."