On May 23, Zumiez (NASDAQ:ZUMZ) released first-quarter earnings for the period ended May 5.

  • Net sales increased by 44%, including an 11.3% increase in comparable-store sales.
  • The company opened 19 new stores in the first quarter. Zumiez expects net square footage expansion of approximately 20% in the second quarter and plans to open 50 new stores in fiscal 2007.
  • Zumiez is rated a four-star stock in Motley Fool CAPS. Those bullish on Zumiez also like Volcom (NASDAQ:VLCM), giving it a four-star rating as well. What do these ratings means? Come join CAPS and find out!

(Figures in thousands, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$68,791

$47,785

44%

Net Profit

$1,617

$1,109

45.8%

EPS

$0.06

$0.04

50%

Diluted Shares

29,008.3

28,631.9

1.3%

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

31.7%

32%

(0.2)

Operating Margin

3.2%

3.1%

0.1

Net Margin

2.4%

2.3%

0.0

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$37,971

$38,024

(0.1%)

Accounts Rec.

$10,980

$3,869

183.8%

Inventory

$50,285

$38,095

32%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$28,430

$21,161

34.4%

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

($12,743)

($1,820)

N/A

Capital Expenditures

$6,197

$3,546

74.8%

Free Cash Flow

($18,940)

($5,366)

N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

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