EVERETT — Hard times for retailers gave Zumiez Inc. its first decline in same-store sales since the company went public three years ago.
But the mild decline of less than 1 percent during the first quarter was coupled with an overall increase in sales, thanks to the opening of new stores during the past year. That was good enough to satisfy investors, who drove up the stock price late Thursday.
“It’s not too bad. They appear to be managing pretty well,” said Sara Hasan, an analyst who tracks Zumiez at McAdams Wright Ragen in Seattle.
The seller of action sports-related gear and clothing said its sales for the quarter ended May 3 totaled nearly $79 million, up more than 14 percent from $69 million in the year-ago period. That gave the company a profit of $1.4 million, or 5 cents per share, down slightly from $1.6 million a year ago.
In Zumiez locations open at least a year, sales fell by 0.8 percent during the first quarter, a sharp reversal from an 11 percent increase a year ago.
“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 energized and focused,” said Rick Brooks, Zumiez’s president and chief executive officer.
He added that the Everett-based retail chain has no plans to slow its growth despite economic conditions right now. As of May 3, Zumiez had 306 stores nationwide.
Hasan said she’s encouraged by that, as she thinks it’s smart for Zumiez to stick to its plan to add 20 percent more stores to its chain this year.
During trading Thursday, Zumiez shares rose just one penny, to $19.20. After the first-quarter results were released, however, the shares rose more than $1.40, or 7 percent, in after-hours trading.
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