Zumiez 1Q profit falls on higher costs

Net income for the period ended May 3 fell to $1.4 million or 5 cents per share, from $1.6 million or 6 cents per share in the corresponding quarter last year.

Sales rose 14 percent to $78.7 million, from $68.8 million in the year-ago period.

Analysts polled by Thomson Financial, on average, expected profit of 3 cents per share on sales of $78.1 million.

Zumiez said the cost of goods sold rose 15 percent to $54.1 million, while selling, general and administration expenses climbed 17 percent, to $22.9 million.

Chief Executive Rick Brooks said retail conditions remains challenging and the company will focus on key areas, such as improving sales dollars per transaction and controlling expenses.

Zumiez share were unchanged from their regular session closing price of $19.20 in active aftermarket electronic trading.