Lynnwood, Wash. - Net income in the fourth quarter of fiscal 2013 at Zumiez Inc. increased 17.3% to $26.9 million, from $22.9 million last year.
Net sales increased 1.1% to $226.8 million from $224.4 million, although same-store sales dropped 2.2%.
Results for the quarter include a $5.8 million benefit related to Zumiez’ acquisition of Blue Tomato. Zumiez plans to open up to 55 new stores during fiscal 2014, including as many as seven in Canada and five in Europe.
"The fourth quarter proved to be more challenging than we expected both domestically and abroad,” said Rick Brooks, CEO of Zumiez, referring to same-store sales. Weak mall traffic in December and January created a highly promotional retail environment that pressured our sales and deleveraged our cost structure.”
During the full fiscal year 2013, Zumiez reported net income increased 9% to $45.9 million, compared to net income in the prior fiscal year of $42.2 million.
Net sales grew 8.2% to $724.3 million from $669.4 million, and same-store sales dropped 0.3%.
Looking ahead, Zumiez expects net sales of $156 to $160 million and a net loss during the first quarter of fiscal 2014. This guidance is based on an anticipated comparable sales decrease in the low single digit range for the first quarter of fiscal 2014, and also takes into account increased spending on digital capabilities and European expansion, as well as the amortization of intangible assets associated with Blue Tomato.