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Teen retailer’s profit plunges in Q2


Lynnwood, Wash. -- It was tough going for Zumiez Inc. in the second quarter as its profit fell 57% amid increased promotional activity.

The skate and surf apparel retailer reported net income of $3.2 million in the quarter, compared to net income of $7.5 million in the year-ago period. The results included include costs of approximately $0.4 million, for charges associated with the acquisition of Blue Tomato.

Total net sales for the quarter increased 1.8% to $179.8 million, from $176.7 million a year ago.

Same-store sales fell 4.5%.

“We remain confident that our strategic course continues to provide us with compelling opportunities to grow our business and return greater value to our shareholders over the long-term,” said CEO Rick Brooks. “That said we are disappointed in our recent performance which reflects a slowdown in domestic sales. The response to our merchandise offering fell short of expectations, requiring us to become more promotional than planned to clear slow moving inventory ahead of the back-to-school selling season.”

For the current quarter ending in November, Zumiez said it expects revenue in the range of $202 million to $206 million, less than expected.

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