Zumiez posts lower 1Q income as costs increase

Zumiez 1st-quarter income falls by almost half on charges from Blue Tomato acquisition

Associated Press

LYNNWOOD, Wash. (AP) -- Zumiez Inc. said Thursday that its net income fell 45 percent in the fiscal first quarter on greater costs related to its acquisition of sports retailer Blue Tomato.

Zumiez sells surf- and skate-themed clothing, footwear, equipment and accessories. The company said its income fell by almost half because it took $1.7 million in charges related to the Blue Tomato deal. The $75.5 million deal expanded Zumiez into Europe, and in last year's quarter Zumiez took $400,000, or a penny per share, in related charges.

The company said its net income fell to $2.5 million, or 8 cents per share, from $4.5 million, or 14 cents per share. The one-time charges reduced its income by 5 cents per share. Revenue rose 14 percent, to $148.5 million from $129.9 million.

FactSet says analysts expected Zumiez to report net income of 11 cents per share and $147.1 million in revenue for the quarter ended May 4.

Sales at locations open at least a year fell 0.7 percent. Those sales are considered an important measurement of retailer health because they leave out results from stores that have opened or closed within the last year.

Analysts expected a decline of 1.8 percent on average.

The company said the full-price sales in March and April were strong even though business conditions were more difficult compared with a year ago.

Zumiez said it expects net income of 12 to 14 cents per share in the second quarter, including 4 cents per share in one-time charges, and $155 million to $158 million in revenue. It said sales at stores open could be unchanged or could rise as much as 2 percent.

Analysts had forecast net income of 17 cents per share and $156.9 million in revenue, and expected sales at locations open at least a year to grow 1.8 percent.

Shares of Zumiez fell 19 cents to $32 on Thursday, and lost $1.18, or 3.7 percent, to $30.82 in after-hours trading.

View Comments (0)

Recommended for You

  • US billionaire says WWII Japanese ship found in Philippines

    Microsoft co-founder Paul Allen said Wednesday he had found one of Japan's biggest and most famous battleships on a Philippine seabed, some 70 years after American forces sank it during World War II. Excited historians likened the discovery, if verified, to finding the Titanic, as they hailed the…

    AFP
  • Central Florida man killed by police serving search warrant

    By Barbara Liston ORLANDO, Fla. (Reuters) - A 26-year-old Central Florida man died after being shot in the face early on Wednesday morning by a sheriff’s deputy attempting to serve a search warrant in a narcotics investigation, authorities said. The Volusia County Sheriff’s Office reported in a…

    Reuters
  • 175-Pound Pit Bull Hulk Shatters Misconceptions About the Breed

    This dog just may be the world's largest Pit Bull. Only 18-months-old, Hulk weighs a hefty 175 pounds. He's also best friends with a 3-year-old boy.

    ABC News
  • Chad president tells Boko Haram leader to surrender or face death

    By Madjiasra Nako N'DJAMENA (Reuters) - President Idriss Deby of Chad said on Wednesday he knew the whereabouts of Abubakar Shekau, the leader of the Nigerian militant group Boko Haram, and called on him to surrender or risk being killed. Chad's army has waged a series of battles against Boko Haram…

    Reuters
  • Passengers use emergency slides after landing in Denver

    DENVER (AP) — Passengers on an American Airlines flight from Charlotte, North Carolina, were forced to slide off the plane on emergency chutes soon after landing in Denver on Wednesday.

    Associated Press
  • Australians on Indonesia death row arrive on execution island

    Two Australian drug smugglers were taken Wednesday to an Indonesian island where they will be executed despite frantic diplomatic efforts to save them, as Prime Minister Tony Abbott said Australia was "revolted" by their looming deaths. Andrew Chan and Myuran Sukumaran, the ringleaders of the…

    AFP
  • U.S. may review 1959 airplane crash that killed Buddy Holly

    (Reuters) - U.S. transportation safety investigators said on Wednesday they are reviewing a request to reopen a probe into the 1959 airplane crash that killed musicians Buddy Holly, Ritchie Valens, J.P. Richardson, better known as "The Big Bopper," and their pilot. The original investigation 56…

    Reuters
  • 'Thousands' of Russian troops in east Ukraine: US envoy

    The United States' senior envoy to Europe alleged Wednesday that Russia had deployed "thousands and thousands" of troops to neighboring Ukraine. Speaking to a congressional foreign affairs committee, Assistant Secretary of State Victoria Nuland also told US lawmakers that Russia was flooding…

    AFP
  • Student Shot With BB Gun On Campus Shocked by University`s Reaction

    A student at Norfolk State University says she was shot with a BB gun and hit with a bottle of urine outside of a all-male dorm room on campus, but says the school offered little help to her or other students when she contacted them.

    Tribune
  • Couple plead not guilty to locking up kids 22 hours a day

    JEFFERSON, Ohio (AP) — A husband and wife accused of making three of their adopted children virtual prisoners inside their Ohio home pleaded not guilty Wednesday in a case that began after prosecutors say two girls crashed the family van while trying to make their escape.

    Associated Press
  • Killers sought in deaths of 300,000 chickens in South Carolina

    By Harriet McLeod CHARLESTON, S.C. (Reuters) - Revenge may be the motive for the killings in South Carolina of more than 300,000 commercial chickens worth about $1.7 million over the past two weeks, authorities said on Monday. Birds have been found dead of unnatural causes in 16 chicken houses at…

    Reuters
  • Senate fails to override Obama's veto of Keystone XL approval

    By Susan Cornwell WASHINGTON (Reuters) - The U.S. Senate failed on Wednesday to override President Barack Obama's veto of legislation approving the Keystone XL oil pipeline, leaving the controversial project to await an administration decision on whether to permit or deny it. The Senate mustered…

    Reuters
  • Hiring Now: Night Jobs

    232 New Night Jobs Now Available! Find Full Time Night Jobs Today.

    AdChoicesBuzzCareerSponsored
  • Americans Love K-Cups, but Their Creator Regrets Inventing Them

    Now it seems that John Sylvan, the inventor of the tiny containers, is firmly on Team #KillTheKCup too. “No matter what they say about recycling, those things will never be recyclable,” said Sylvan.

    Takepart.com
  • Marijuana Growers Arrested After Pocket Dialing 911

    Three men in California were arrested Monday night after one of the suspects pocket dialed 911. The emergency operator who took the call heard two of the men talking about the possibility of getting pulled over, leading to a major drug bust.

    KSWB - San Diego
  • Searching for Curtains?

    Browse thousands of designs and get what your home needs for cheap. Compare real deals at HomeGardenPro!

    AdChoicesHomegardenproSponsored
  • Father says no proof his son is 'Jihadi John'

    The father of "Jihadi John" said in an interview published Wednesday that there was no proof that his son was the Islamic State executioner, adding there were a number of "false rumours" circulating. "There is nothing that proves what is being circulated in the media, especially through video clips…

    AFP
  • Family of California girl left brain dead after tonsillectomy sues hospital

    By Dan Whitcomb LOS ANGELES (Reuters) - The family of a Northern California girl who made national headlines when she was declared brain dead after a tonsillectomy to correct sleep apnea sued the surgeon and hospital on Tuesday, alleging medical malpractice. Jahi McMath, who was 13 when she…

    Reuters
  • Survivor testifies about 2 friends stabbed, bound, drowned

    PHILADELPHIA (AP) — A man who survived being beaten, bound, stabbed in the neck and kicked into the Schuylkill River took the stand in a hearing Tuesday and described the night his two friends lost their lives.

    Associated Press