Zumiez Q4 Profit Down - Update

(RTTNews) - Sports apparel retailer Zumiez, Inc. (ZUMZ), Thursday reported a drop in profit for the fourth quarter, hurt largely by acquisition charges that offset higher revenues and an increase in same-store sales.

Lynnwood, Washington-based Zumiez's fourth-quarter profit dropped to $17.5 million or $0.60 per share from $26.9 million or $0.89 per share last year.

Results for the quarter include Blue Tomato acquisition charges of $6.9 million, while last year results included a $5.8 million benefit for the reversal of contingent earn-out accruals related to Blue Tomato acquisition and a $3.3 million benefit for the correction of an error related to the accounting for rent expenses.

On average, 20 analysts polled by Thomson Reuters expected earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter grew 14.0 percent to $258.6 million from $226.8 million a year earlier. Comparable sales for the 13-week period ended January 31 increased 8.3 percent, compared to a 2.2 percent decrease last year.

Analysts had a consensus revenue estimate of $257.74 million for the fourth quarter.

Gross margin for the quarter dropped to 37.8 percent from 38.7 percent last year. Zumiez operates as a multi-channel specialty retailer of action sports related apparel, footwear, and accessories.

Looking forward to the first quarter, the company sees earnings of $0.08 to $0.10 per share and sales of $176 million to $178 million. Analysts currently expect earnings of $0.14 per share on revenues of $181.29 million for the quarter.

Zumiez anticipates comparable sales increase in the range of 3 to 4 percent for the first quarter and also plans to open about 57 new stores in fiscal 2015, including up to 7 stores in Canada and 6 stores in Europe.

ZUMZ closed Thursday's trading at $39.96, up $1.68 or 4.39%, on the Nasdaq. The stock further dropped 1.96 or 4.90% in after-hours trade.