Q4 earnings plummet at Zumiez
Action sports apparel, footwear and accessories retailer Zumiez Inc has reported a decline in earnings for the fourth quarter and full year ended January 31.
Total net sales for the fourth quarter fell 0.9% to $125.5 million from $126.6 million reported in the fourth quarter ended February 2, 2008. Net income for the quarter was $6.3 million compared with $12.4 million in the prior-year period.
However, total net sales the full year rose 7.1% to $408.7 million from $381.4 million in the previous year. The company posted net income of $17.2 million versus $25.3 million in the prior year.
Chief executive officer, Rick Brooks, said: “Fiscal 2008, particularly the second half of the year, was incredibly challenging. Since September, the deteriorating economic conditions have significantly dampened consumer appetite for discretionary items.”
However, he added: “We begin 2009 confident that our strong balance sheet, which includes approximately $79 million in cash, cash equivalents and current marketable securities, no debt and lean inventory levels, combined with our competitive advantages will allow us to successfully manage our business through this difficult macro environment. While longer-term we believe we are well positioned to drive increased profitability and greater shareholder value once the economy improves.”
