ZUMZ » Topics » Gross Profit

These excerpts taken from the ZUMZ 10-Q filed May 29, 2009.
Gross profit.  Gross profit measures whether we are optimizing the price and inventory levels of our merchandise.  Gross profit is the difference between net sales and cost of sales.  Cost of sales consists of branded merchandise costs, and our private label merchandise including design, sourcing, importing and inbound freight costs.  Our cost of sales also includes markdowns, shrinkage, certain promotional costs and buying, store occupancy and warehousing costs.  Any inability to obtain acceptable levels of initial markups or any significant increase in our use of markdowns could have an adverse effect on our gross profit and results of operations.

 

Gross Profit

 

Gross profit for the three months ended May 2, 2009 was $21.9 million compared with $24.6 million for the three months ended May 3, 2008, a decrease of approximately $2.7 million, or 10.8%.  As a percentage of net sales, gross margin decreased to 28.5% for the three months ended May 2, 2009 from 31.2% for the three months ended May 3, 2008.  The reduction in gross margin as a percent of net sales was primarily driven by increased store occupancy costs partially offset by lower shipping costs.

 

These excerpts taken from the ZUMZ 10-K filed Mar 23, 2009.

Gross Profit

        Gross profit for fiscal 2008 was $134.5 million compared with $137.0 million for fiscal 2007, a decrease of $2.5 million, or 1.8%. As a percentage of net sales, gross profit decreased 3 full percentage points to 32.9% in fiscal 2008 from 35.9% in fiscal 2007. The decrease in gross profit as a percentage of net sales was driven primarily by store occupancy costs growing at a faster rate than sales (worth 1.4 percentage points), and lower product margins of 1.6 percentage points primarily due to apparel which is about 50% of our sales.

Gross Profit

        Gross profit for fiscal 2007 was $137.0 million compared with $108.2 million for fiscal 2006, an increase of $28.8 million, or 26.6%. As a percentage of net sales, gross profit decreased to 35.9% in fiscal 2007 from 36.3% in fiscal 2006. The decrease in gross profit as a percentage of net sales was due primarily to higher shrinkage, store occupancy costs, and distribution costs partially offset by higher product margins due to improved product management.

This excerpt taken from the ZUMZ 10-Q filed Dec 1, 2008.

Gross Profit

 

Gross profit for the nine months ended November 1, 2008 was $93.9million compared with $88.4 million for the nine months ended November 3, 2007, an increase of $5.5 million, or 6.2%.  As a percentage of net sales, gross profit decreased to 33.2% for the nine months ended November 1, 2008 from 34.7% for the nine months ended November 3, 2007.  The decline in gross profit as a percent of net sales was driven primarily by store occupancy costs growing at a faster rate than sales and lower gross margin on apparel sales.

 

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This excerpt taken from the ZUMZ 10-Q filed Aug 28, 2008.

Gross Profit

 

Gross profit for the six months ended August 2, 2008 was $54.7 million compared with $49.9 million for the six months ended August 4, 2007, an increase of $4.8 million, or 9.5%.  As a percentage of net sales, gross profit decreased to 32.0% for the six months ended August 2, 2008 from 33.1% for the six months ended August 4, 2007.  The decline in gross profit as a percent of net sales was driven primarily by store occupancy costs growing at a faster rate than sales.

 

This excerpt taken from the ZUMZ 10-Q filed May 30, 2008.

Gross Profit

 

Gross profit for the three months ended May 3, 2008 was $24.6 million compared with $21.7 million for the three months ended May 5, 2007, an increase of approximately $2.9 million, or 13.1%.  As a percentage of net sales, gross margin decreased to 31.2% for the three months ended May 3, 2008 from 31.6% for the three months ended May 5, 2007.  The reduction in gross margin as a percent of net sales was driven by occupancy cost growth outpacing revenue growth, partially offset by a higher average unit retail price and lower stock based compensation expense included in cost of goods sold.

 

This excerpt taken from the ZUMZ 10-K filed Mar 25, 2008.

Gross Profit

        Gross profit for fiscal 2006 was $108.2 million compared with $72.5 million for fiscal 2005, an increase of $35.7 million, or 49.2%. As a percentage of net sales, gross profit increased to 36.3% in fiscal 2006 from 35.3% in fiscal 2005. The increase in gross profit as a percentage of net sales was due primarily to the increase in net sales for fiscal 2006 compared to fiscal 2005, which allowed us to leverage certain fixed costs, over greater total net sales, improved pricing from some of our vendors

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due to our larger merchandise purchases and reduced freight costs, distribution costs and buying costs as a percentage of net sales.

This excerpt taken from the ZUMZ 10-Q filed Dec 13, 2007.

Gross Profit

 

Gross profit for the nine months ended November 3, 2007 was $88.7 million compared with $64.3 million for the nine months ended October 28, 2006, an increase of $24.4 million, or 37.9%.  As a percentage of net sales, gross margin increased to 34.8% for the nine months ended November 3, 2007 from 34.6% for the nine months ended October 28, 2006.  The improvement in gross margin as a percent of sales was driven by higher product margins due to improved product management and higher average unit retail price.

 

This excerpt taken from the ZUMZ 10-Q filed Sep 11, 2007.

Gross Profit

Gross profit for the six months ended August 4, 2007 was $50.1 million compared with $34.0 million for the six months ended July 29, 2006, an increase of $16.1 million, or 47.1%.  As a percentage of net sales, gross margin increased to 33.2% for the six months ended August 4, 2007 from 32.9% for the six months ended July 29, 2006.  The improvement in gross margin as a percent of sales was driven by higher product margins due to improved product management and higher average unit retail price.

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This excerpt taken from the ZUMZ 10-Q filed Jun 1, 2007.

Gross Profit

Gross profit for the three months ended May 5, 2007 was $21.8 million compared with $15.3 million for the three months ended April 29, 2006, an increase of $6.5 million, or 42.9%. As a percentage of net sales, gross margin decreased to 31.7% for the three months ended May 5, 2007 from 32.0% for the three months ended April 29, 2006. The decrease in gross margin as a percentage of net sales was due to higher store occupancy costs as a result of a higher proportion of new and maturing stores and an increase in stock based compensation largely offset by improved product margins.

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