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Here's How Zumiez Is Doing So Far This Year

Dec. 16, 2014 12:26 AM ETZumiez Inc. (ZUMZ)
William Bias profile picture
William Bias


  • E-commerce, same store sales increases, and expansion contributed to robust fundamental gains.
  • Zumiez sports a solid balance sheet that should help it self-finance expansion.
  • Zumiez has rewarded its shareholders handsomely over the past five years.

On Dec. 9, snowboarding, motocross, snowboarding related apparel, footwear, and accessories company Zumiez (NASDAQ: NASDAQ:ZUMZ) came out with its Q3 2014 10-Q which followed up in more detail on its earnings announcement released on Dec. 4. The company has performed well so far this year and stands in solid financial shape which is a good thing in the competitive retailing landscape.

Excellent fundamental expansion

Zumiez's year-to-date revenue expanded an incredible 11% year-over-year. The addition of 54 stores along with a comparable sales increase of 3% contributed to the robust top line gains. E-commerce contributed the majority of the same stores sales increase. Zumiez e-commerce business saw a 17% increase in comparable store sales vs. a 1.4% increase in comparable store sales. It's also important to note that e-commerce expanded its footprint in the Zumiez business going to 11% of total sales vs. 10.5% the same time last year. The e-commerce growth is reflective of the overall shift in shopping patterns to the internet and away from brick and mortar stores. Also, customers are increasing their frequency of purchases and spending more per transaction.

Zumiez's year-to-date net income also expanded 35%. Net income expansion was helped by the absence of incentive payments that related to its Blue Tomato transaction, cost controls, and the absence of a litigation charge that the company had in 2013. Zumiez's free cash flow swung from a negative $5.5 million this time last year to a positive $5.5 million so far this year. Increased net income and favorable changes in operating assets and liabilities, most notably accounts payable, contributed to this positive change in free cash flow.

Excellent balance sheet

Zumiez is one of the few companies I have researched that meets my high standards on balance sheets. Currently, the company possesses roughly $109 million in cash and marketable securities

This article was written by

William Bias profile picture
I have been analyzing stocks since 1992 and a freelance writer since 2012.

Analyst’s Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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