MAY 20, 2005 -- In its first report following its more than successful IPO, Zumiez posted net 1Q sales increased by 34.4% to $33.4 million. The company posted a net loss for the quarter of $40,000 or 0¢ per diluted share versus a net loss of $678,000 or 6¢ per diluted share. Comp-store sales increased 12.1% compared to 8.3% in 1Q04.
Rick Brooks, president/CEO, stated, "Our solid first quarter performance represents a great way to start the new fiscal year. We achieved strong operating gains driven by new store openings, comparable-store sales increases, and operating margin expansion. We believe these results are a testament to the strength of our retail concept and underscore our ability to effectively reach our core consumer."
On May 5, the company completed an IPO of 3,593,750 shares of common stock at a price to the public of $18.00 per share (the stock opened on Friday at $25.70), of which 1,875,000 shares were sold by the company and 1,718,750 shares were sold by certain selling shareholders, including 468,750 shares that were sold by the selling shareholders pursuant to the underwriters' over-allotment option. Upon completing the offering, the company and the selling shareholders received net proceeds of approximately $29.7 million and $28.8 million, respectively. The company intends to use the proceeds together with cash flow from operations to fund new store openings, store improvements, infrastructure improvements, and for working capital and other general corporate purposes.
For FY05, the company plans to open 35 new stores. In 1Q, Zumiez opened six new stores and is on plan for store openings for the remainder of the year.
Brooks concluded, "Zumiez has become a true lifestyle retailer within the mall with a high-energy concept that appeals to a broad base of young consumers. We believe that our unique mix of branded merchandise, our hard-goods assortment, and the compelling visual merchandising of our stores gives us great legitimacy with this highly savvy consumer and differentiates us from our peers. With 146 stores, a very compelling unit economics proposition, and now significant capital resources, we are well-positioned and focused on fulfilling our many opportunities for growth."
Zumiez, pronounced "zoomies," is a specialty retailer of action sports related apparel, footwear, equipment and accessories. The stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. We currently operate 146 stores, which are primarily located in shopping malls and our web site address is www.zumiez.com.
