Led by a surge in net income, diluted EPS skyrocketed 62.5% year-on-year at Zumiez Inc, a retailer of action sports related apparel, footwear and accessories for the second fiscal quarter ended August 2, 2014.
Net income in the second quarter of 2014 increased 57.3% to $7.5 million, or $0.26 per diluted share, compared to net income of $4.7 million, or $0.16 per diluted share, in the second quarter of the prior fiscal year.
Zumiez said results for fiscal 2014 include costs of around $0.6 million, or $0.01 per diluted share, for charges associated with the acquisition of Blue Tomato while those for fiscal 2013 include around $1.7 million, or $0.04 per diluted share of Blue Tomato acquisition related costs.
Net sales for the 13 weeks period ended August 2, 2014 also rose 11.9% to $176.7 million from $157.9 million in the thirteen weeks ended August 3, 2013, while comparable sales for second quarter of 2014 increased 3.4% year-on-year.
As of August 2, 2014, the retailer had cash and current marketable securities of $113.4 million, up from $95.0 million on August 3, 2013. The retailer said the hike is a result of cash generated through operations, partially offset by capital expenditures and stock repurchases.
Meanwhile, Zumiez reported a 9.4% rise in net sales for the four-week period ended August 30, 2014 at $94.0 million, up from $85.9 million for the four-week period ended August 31, 2013, while comparable sales went up 2.0% from the same period of 2013.
Rick Brooks, CEO at Zumiez said, "We are pleased with our second quarter performance. Our ability to connect consumers with our unique assortment of brands, drove higher than expected sales which allowed us to better leverage our expense.
"Our organization continues to get smarter and more efficient at executing our global omni-channel strategy and we believe there is still runway for added improvement in the years ahead", he added.
Zumiez is a multi-channel specialty retailer operating 592 stores, including 543 in the United States, 34 in Canada, and 15 in Europe and operates under the name Zumiez and Blue Tomato.
