Late buying rush pushes Zumiez to positive comps for December

Last-minute and after-holiday shoppers came out in enough force – and bought more, lower priced goods -- to give Zumiez a surprise lift to positive comps, the company reported today.

The results were strong enough that Zumiez raised its guidance for its Q4 results to project a narrower comp store decline for the quarter.

Q4 sales should range from $128 - $131 million, CFO Trevor Lang said, pushing net earnings per diluted share to a range of 24 – 27 cents – up from earlier projections of 18 – 22 cents.

Q4 comp sales should be in the mid- to low-single digit declines, compared to earlier projections of a mid- to high-single digit decline.

December’s gains were “driven primarily by an increase in store transactions,” Lang said. During the period, Zumiez saw a small decline in the dollar sales per transaction, but an increase in units purchased per transaction.

Other details from the call:

• Same store sales for December grew by .3% for the 5-week period ending Jan. 2, Lang said in the company’s recorded sales call.

• Total sales grew by 7.7% compared to the year-ago 5-week period, to $77.6 million, compared to $72 million a year ago.

• Weekly comps saw a steady growth, compared to the same week in 2008:

• Regional sales were fairly consistent:

• Men’s accessories and shoes posted positive comps
• Hardgoods, boys and juniors posted declines

• For Q4 to date, comps are at -2.4%, compared to -13.1% a year ago
• For 2009 to date, comps are -10.6%, compared to -6.1% a year ago.

• Zumiez operates 377 mall-based stores targeted at boys and girls 12-24. It carries surf, skate, snow, moto and BMX apparel and hardgoods.
• 331 stores were included in the comps.