On Nov. 15, Zumiez (NASDAQ:ZUMZ), which sells sports apparel and equipment, released third-quarter earnings for the period ended Oct. 28.

  • Revenues increased 43.3% to $82.2 million, driven by new stores and a 10.7% increase in comparable-store sales.
  • Unfortunately, net profit moved ahead only 29.3% to $6.8 million.
  • In fiscal 2007, the company is planning to open 50 new stores, in line with its long-term goal of expanding square footage by 20% to 25% annually.
  • In our new CAPS rating service, 295 out of 313 players regard Zumiez an "outperform." Whether you agree or disagree, bring it to CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$82,258.0

$57,412.0

43.3%

Net Profit

$6,827.0

$5,279.0

29.3%

EPS

$0.24

$0.18

33.3%

Diluted Shares

28,861.9

28,601.8

0.9%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

36.8%

37.3%

(0.5)

Operating Margin

13.3%

14.3%

(1.0)

Net Margin

8.3%

9.2%

(0.9)



*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$19,946.0

$30,101.0

(33.7%)

Accounts Rec.

$5,816.0

$4,558.0

27.6%

Inventory

$56,694.0

$43,597.0

30.0%

Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$32,002.0

$30,280.0

5.7%

Long-Term Debt

$0

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$3,307.0

$3,351.0

(1.3%)

Capital Expenditures

$14,469.0

$8,554.0

69.1%

Free Cash Flow

($11,162.0)

($5,203.0)

N/A



Find out why Fools always follow the money.

Related Companies

  • Volcom (NASDAQ:VLCM)
  • Dick's Sporting Goods (NYSE:DKS)
  • Sport Chalet (NASDAQ:SPCHB)

Related Foolishness:

Zumiez and Volcom are Motley Fool Hidden Gems recommendations. Interested in outstanding small-cap stocks flying under the market's radar? Join Tom Gardner and other investors like you on the Hidden Gems discussion boards -- available for 30 days with a free trial.

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.