Zumiez (ZUMZ) 2020 Q4 Earnings Results

The history of Zumiez Inc. (NASDAQ:ZUMZ) dates back to 1978 when former J.C. Penney employees Thomas Campion and Gary Haakenson established a clothing store in Seattle. They targeted young men and women with their clothing products and their store gained popularity within few years following its inception. Aggressive expansion and continuous focus on teenagers helped the company to become a leading specialty retailer of apparel, footwear, and accessories. Zumiez currently operates 722 stores across the United States, Canada, Europe, and Australia.

The Lynnwood, Washington-based company on Thursday announced its financial results for the fourth quarter. It reported earnings of $42.8 million, or $1.68 per share for the three months ended January 30, up from $37.9 million, or $1.48 per share in the comparable period of 2019. Analysts on average were expecting Zumiez to report earnings of $1.61 per share.

Revenue inched up 0.8 percent on a year-over-year basis to $331.5 million, beating the consensus forecast of $327.27 million. Same-store sales in the quarter increased 4.7 percent, as compared to a surge of 6.4 percent in the year-ago quarter.

Commenting on the quarter, CEO Rick Brooks said in a statement, “We are extremely proud of how our organization executed during a year of significant and unfamiliar challenges. Our one channel approach to retail and relentless focus on serving the consumer allowed us to achieve annual sales close to fiscal 2019 levels and record profitability despite our stores around the world being closed for approximately 22% of the possible operating days.”

Zumiez also issued its initial sales figures for the current quarter. The company said its sales fell 3.8 percent in the first 35 days ended March 6, while same-store sales were down 0.4 percent during the same period.

ZUMZ shares fell nearly 6 percent in the mid-day trading Friday apparently on weak initial sales numbers. Nevertheless, the stock has performed well in recent months. Zumiez shares have climbed nearly 150 percent during the past 12 months.

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