• Net profit up 140% to $4.5m
  • Sales increased 22.7% to $129.9m

 

Zumiez has posted a 140% jump in first-quarter net income as the US sportswear retailer improved profit margins and grew sales.

The company yesterday (17 May) posted a profit of US$4.5m in the quarter ended 30 April. Net sales increased 22.7% to $129.9m, as comparable store sales rose 12.9%. Gross margin improved to 32.4% from 31.3% in the same period of the prior year.

"We are pleased to start the year off with such strong performance," said CEO Rick Brooks.

"While the first quarter represents only a small percentage of our annual sales and earnings, theses results are further validation that our strategies to profitably grow the business are working. Our teams are energised and focused on carrying our current momentum into summer and positioning the company for a successful back half of the year."

The retailer is forecasting second-quarter earnings of $0.04-0.06 per share, as it expects costs of around $1.8m related to the relocation of its corporate offices and e-commerce fulfilment centre.