Zumiez reported a 16 percent drop in its third-quarter profit today, a decline the Everett-based retailer blamed on fewer customers and costly promotions.
Everett-based retailer Zumiez reported a 16 percent drop in its third-quarter profit today, citing fewer customers entering its stores and costly promotions needed to move merchandise in a rapidly deteriorating economy.
For the three months ended Nov. 1, Zumiez had a profit of $6.8 million, or 23 cents a share, in line with analysts’ expectations after the company lowered its financial guidance earlier this month. A year ago, Zumiez posted a profit of $8.1 million, or 28 cents a share.
Total sales increased 7.9 percent to $112.2 million, but sales at stores open at least a year (meaning newly opened stores are excluded) decreased 5.8 percent. Zumiez sells action-sports apparel, shoes and gear at about 340 stores nationwide.
The company continued to experience weakness in California, Florida, Arizona and Nevada — states hit especially hard by turmoil in the U.S. housing market — but the Northwest and Rocky Mountains also emerged as challenging areas, Chief Financial Officer Trevor Lang told analysts in a conference call.
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Zumiez, which announced its third-quarter results after the end of regular trading, reiterated its full-year profit outlook for between 52 cents and 57 cents a share. Its stock rose 6 cents in after-hours trading after closing down a penny to $6.12.
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