Trevor Lang - CFO
Zumiez (ZUMZ) December 2007 Sales Call January 7, 2008 8:00 AM ET
Good morning, and welcome to the December 2007 Zumiez sales call. This is Trevor Lang, the company’s Chief Financial Officer.
Before I start, I would like to note that during this call, I may make certain forward-looking statements which are subject to risks and uncertainties which could cause actual results to differ materially from those expressed inthe forward-looking statements.
Such risks and uncertainties are described in the company’s quarterly report on Form 10-Q for the quarter ended November 3, 2007 that was filed with the SEC on December 13, 2007. You are urged to consider any forward-looking statements made today inthe context of the risk factors contained in our SEC filings.
Our company does not intend, and undertakes no obligation to, update or revise any forward-looking statements to reflect subsequent events or circumstances.
The company’s comparable store sales increased 3.9% for the five-week period ended January 5th, 2008. In fiscal December 2006, comparable store sales increased 11.5% inthe five-week period ended December 30th, 2006.
Total sales for the five-week period ended January 5th, 2008, increased 15.3% over the December period last year to $72 million compared to $62.5 million for the five-week period ended December 30th, 2006.
Due to the addition of the 53rd week in fiscal 2006, total December sales for the five weeks ended January 5th, 2008 are a week later than reported December sales for the five weeks ended December 30th, 2006.
Total December sales on a comparable five-week basis increased 18.4% over fiscal 2006.
Our December 2007 weekly comps were: negative 1.2%, negative 1.8%, negative 5.2%, positive 23.5% and positive 16% for weeks 1 through 5 respectively. For December 2007, total sales growth was driven by new stores and comparable store sales gains, which were driven by an increase in average unit retail and a comp store transaction gain.
Men’s, junior’s and accessory sales were the strongest positive contributors for the month, somewhat offset by negative same-store sales performances from shoes, skates and snow hard goods departments.
We ended the five-week period with a store count of 285 stores, of which 235 are comp stores. We have completed our planned opening of 50 stores in fiscal 2007.
Based on the quarter-to-date sales results, the company now expects full year fiscal 2007 earnings per diluted share to be inthe range $0.82 to $0.83, compared to fiscal 2006 earnings per share of $0.73 and the company’s previous guidance of $0.92 to $0.94 per diluted share.
The reduction in diluted earnings per share relative to our previous guidance is primarily the result of lower-than-planned sales and, to a lesser extent, lower-than-planned gross margins offset slightly by expected reductions in SG&A. Our revised guidance assumes alow single-digit same-store sales increase for January.
Thank you for your continued interest in Zumiez.