The board-sports-related retailer's August comps increased by 17.4%, compared to a 4.7% increase last year this time. Total sales in August increased 39.7% to $47 million. Analysts expected Zumiez to report a 9.5% increase in comps in August, so the company did considerably better than they had expected.
A quick peek at the company's sales-call transcript revealed that men's sales were the strongest contributor to the month's results. As the company had already disclosed, sales in the week before Labor Day lagged in August this year, meaning that Zumiez will be up against pretty tough comparisons in September. The company now has 272 stores, and it's still on track to open a total of 50 stores this year.
Zumiez's solid August may not seem quite as impressive to some investors, perhaps, given that many of its competitors also had a strong showing. Back-to-school shopping was obviously a major benefit this month. Perennial struggler Pacific Sunwear
There's only so much credence anyone can give to short-term monthly comps, although they're a great tool for investors to get a feel for how well retailers' brands are faring. I can see why some value-oriented investors might find this company's high multiples daunting. Stocks like Zumiez do tend to be volatile, as its quarterly results in May amply demonstrated. But the retailer continues to report the kind of growth that gives investors good reason to remain optimistic.
Catch up on Zumiez over the last couple of months: