Riding a rad wave

  • By Eric Fetters / Herald Writer
  • Wednesday, August 17, 2005 9:00pm
  • Business

EVERETT – Zumiez is heading into the busy back-to-school shopping season on a roll, thanks to strong sales at new stores and trends that seem to favor the youth-oriented retailer’s fashions.

The Everett-based company reported Wednesday that its sales grew by 29 percent over the second quarter of 2004. It also issued a rosy outlook for the next six months.

Michael V. Martina / The Herald

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Zumiez specializes in clothing and accessories for skateboarders, snowboarders and bicyclists.

“We’re excited about how the business has performed and the growth opportunities that lie ahead,” said Brenda Morris, chief financial officer, in the first conference call since Zumiez Inc. went public in early May.

Zumiez, launched in 1978, identifies its core customer base as 12- to 24-year-old skateboarders, snowboarders, surfers and bike riders, as well as those who prefer action or sports apparel.

While the stocks of some competitors dipped after missing Wall Street analysts’ expectations, Zumiez beat the estimates with a profit of 6 cents a share, 1 cent higher than anticipated.

That was enough to send the stock up by $1.50 to $31.50 a share in after-hours trading late Wednesday.

Since debuting at $18 a share three months ago, Zumiez’s stock has risen 75 percent, making it one of the year’s most successful initial public offerings.

Sara Hasan, an analyst who tracks Zumiez for Seattle’s McAdams Wright Ragen, said the company seems to be performing well in the competitive teen retail market. In recent days, share prices of competitors Aeropostale and Abercrombie &Fitch were battered in the markets after missing investor expectations.

Hasan added that she was heartened to hear Zumiez will open more stores in the third quarter, ahead of the holiday shopping season.

The company said earlier it planned to add up to 35 new locations this fiscal year, but it had fallen behind that pace.

As of July 30, Zumiez had 150 stores in 19 states. The chain expects to continue expanding nationwide, eventually having up to 800 stores.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.

Michael V. Martina / The Herald

Zumiez specializes in clothing and accessories for skateboarders, snowboarders and bicyclists.

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