Zumiez Inc (ZUMZ) has reported 38.29 percent jump in profit for the quarter ended Jan. 28, 2017. The company has earned $18.18 million, or $0.74 a share in the quarter, compared with $13.15 million, or $0.50 a share for the same period last year. Revenue during the quarter grew 8.75 percent to $263.64 million from $242.43 million in the previous year period. Gross margin for the quarter expanded 91 basis points over the previous year period to 35.66 percent. Total expenses were 89.41 percent of quarterly revenues, down from 91.13 percent for the same period last year. This has led to an improvement of 172 basis points in operating margin to 10.59 percent.
Operating income for the quarter was $27.91 million, compared with $21.50 million in the previous year period.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "Our fourth quarter earnings performance exceeded expectations driven by efficiencies realized as we continued to execute on our omni-channel and localization efforts combined with a more favorable tax rate. The investments we've made in our merchandise offering, sales teams and omnichannel capabilities generated solid top-line momentum during the holiday season and continue to further distinguish Zumiez, Blue Tomato and Fast Times from the competition. We are pleased with our finish to the year especially in light of the headwinds facing the retail industry. Looking ahead, our primary focus remains on executing the strategic multi-year growth objectives that we believe will deliver increased profitability and greater shareholder value over the long-term. We believe that it is this focus that will allow us to successfully navigate through the current environment, including the impact that certain events are having on our monthly sales cadence in early 2017."
For the first-quarter 2017, Zumiez Inc expects revenue to be in the range of $178 million to $182 million and its diluted loss per share to be in the range of $0.17 to $0.21.
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $48.46 million, when compared with the previous year period The company has spent $51.52 million cash to meet investing activities during the year as against cash inflow of $64.73 million in the last year.
The company has spent $20.07 million cash to carry out financing activities during the year as against cash outgo of $90.76 million in the last year period.
Cash and cash equivalents stood at $20.25 million as on Jan. 28, 2017, down 53.09 percent or $22.92 million from $43.16 million on Jan. 30, 2016.
Working capital increases
Zumiez Inc has recorded an increase in the working capital over the last year. It stood at $137.77 million as at Jan. 28, 2017, up 6.17 percent or $8.01 million from $129.76 million on Jan. 30, 2016. Current ratio was at 2.87 as on Jan. 28, 2017, down from 2.88 on Jan. 30, 2016.
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