Zumiez Q3 profit slips on one-off costs

Zumiez has seen its third-quarter net profit slip on the back of a series of one-off costs.

Net income was down 9.9% to $12.7 million for the 13 weeks to October 27, compared to $14.1 million the year before.

One-off costs incurred during the quarter include $4 million relating to the Blue Tomato acquisition and $500,000 worth of exit costs linked to the relocation of its corporate offices to Lynnwood, Washington.

Sales increased 16.9% to $180 million from $154 million the same period last year. Comparable store sales climbed 3.7% on top of a rise of 6% the prior year.

CEO Rick Brooks said: “Our third quarter operating results reflect softer than expected sales trends in Europe and modest comparable store sales for the post back to school period. Comp trends remained challenging in November, particularly early in the month in part due to Hurricane Sandy, however we are encouraged by the more recent sales results, with positive comps over the Black Friday weekend. 

“We believe the combination of our merchandise assortments and enhanced omni-channel capabilities, along with best in class customer service, have us well positioned to execute through the holiday season.”

The company expects fourth-quarter net income per diluted share to range from $0.59 to $0.62, while net sales are forecast to be between $218 million and $221 million.

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