Zumiez Catches Air: Fool by Numbers

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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:

• No Zzz's at Zumiez  
• Extreme Growth at Zumiez  
• Fossil Unfrozen

Zumiez is a Motley Fool Hidden Gems recommendation. For more on how small-cap stocks can give your portfolio a big boost, sign up today free for 30-days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.